Entrepreneurs, in order to register or to buy a ready-made offshore company, appeal mostly either to the specialized consulting companies or directly to the registration agent, who possess the appropriate licenses and authorizations. The main purpose of businessmen is the effective protection and guaranteed safety of the existing assets.
The pattern of interaction with the specialized companies is as follows:
- Expert advice on the choice of a suitable offshore jurisdiction;
- Provision of necessary set of documents;
- Payment for services of a consulting company;
- Obtaining of the documents for newly registered or purchased ready-made offshore company.
After receiving all the documents personally, businessmen pretend that they have provided their financial assets with proper and, what is the most important, reliable protection. Moreover, they account on the different competitive advantages, for example, loyal tax climate or preferential access to the new markets, etc. But all is not that simple.
In the modern international economy, when many countries have intensified their fight against the offshore jurisdictions, the choice of the parameters and opportunities of an offshore company is essential and requires a serious approach. Only in the case of having a clear understanding of the actions and the possible consequences you are able to provide the sufficient protection for your assets.
Confidentiality and privacy of the information as the basis for asset protection
It should be noted that the protection of the financial and other assets does not admit the non-professional approach. It is important to take into account all the existing conditions and parameters, which define the necessary offshore jurisdiction. Besides, each particular case requires the individual approach, because it is impossible to derive a universal rule that would fit for all the cases.
There is, however, the foundation on which the entire protection of assets in the offshore companies is built, in particular, the confidentiality and privacy of information about the owners of the business. In fact, the confidentiality acts as a foundation of asset protection, which will be complemented by a variety of tools that ensure the efficiency of the entire structure.
An effective structure of the asset protection in the offshore companies can be built using several practical recommendations. The core elements to consider are below.
Choosing the registration agent
Experts do not recommend applying to the registration agents, who offer unreasonably low costs for incorporation or buying of a ready-made offshore company. Low price, first of all, indicates the quality of provided services. Remember – the one who is greedy, is often forced to pay much more at the end effect.
One should think seriously about the trustworthiness of the proposal if the registration agent is going to accomplish the procedure with violations of the regulations and legislation of the relevant jurisdiction. For example, the agent may promise to register a company even in the absence of mandatory documents. In such situation you face a risk of getting fines from governmental regulatory authorities, or completely losing your assets and a company.
Provide your assets with information safety / protection
It is not recommended to tell all the acquaintances that your financial assets are safely hidden in an offshore zone. If you hope that others will keep your confidences, it is, at least, mistaken. It is important to understand, that it is always only you who is the main source of spreading information about your assets. Take this issue under the special control.
One should take into account, that the modern international law is amended and adjusted every year, and the territory of the offshore zones is not an exception. Before, the traditional offshore zones ensured the safety of information about the business owners and the ultimate beneficiaries, but today, many offshore jurisdictions have to provide such information to the international organizations. The number of offshore jurisdictions, that are able to ensure the confidentiality, decreases every year. Even if the shares of an offshore company are issued to bearer, the registrar must keep detailed information about the real ultimate beneficiaries.
One should consider all the factors and think over reasonably while choosing one or another jurisdiction. After all, many offshore jurisdictions, which were known in the past, today are unlikely to provide 100% safety and confidentiality of information. In other words, before choosing an offshore zone, make sure that the protection of information is secured in the country legislation.
It is also important to separate such concepts as anonymity and confidentiality of the information. Anonymity implies the maximum confidence of the information, when information is not available even for the authorized registration agent. The confidentiality, in its turn, implies that information is available, but it is closed for the third parties. So, in many offshore jurisdictions, the confidentiality is ensured by the nominee services (nominee shareholders and directors).