If you are considering starting a company, one of the ideas that might have crossed your mind is going offshore. An offshore business is likely to enjoy impressive performance that common enterprises back home cannot match. Like other business, starting a company offshore is a great commitment with possibilities of making more profits, but also with key risks that you need to understand well.
To help you understand offshore company investment and make the best decision, here is our comprehensive guide. Keep reading to learn what an offshore company is and how the process of registration works. We will also tell you how to increase the chances of success for your offshore company.
How Does an Offshore Company Works?
Before getting deeper into offshore company investing, it is important to start by understanding how it works. An offshore company is any business that is opened in a jurisdiction other than your home country. Let us take an example of an investor in the US. If he decides to open a company in China, it will be an offshore entity because it is opened in a foreign country.
To open an offshore business, you are required to follow the proper procedures, especially during registration. If you prefer offshore company formation in Hong Kong, the process is guided by the Hong Kong Companies Ordinance, while the UK requires you to follow the Overseas Companies Regulations 2009. It is, therefore, crucial to check these legislations and craft strategies for compliance, starting with company registration.
What are the Main Benefits of Going Offshore?
The primary benefit of company formation offshore is access to a larger market away from home. Irrespective of your home country’s suitability for business growth, the only way to become a multinational is expanding reach through offshore companies. For example, you can open a company in Hong Kong, China, or Singapore to reach the Far East market. Other benefits of an offshore company:
- Asset protection.
- Better chances of growing sales and profits.
- You can take advantage of bilateral trade agreements in the offshore jurisdiction for better global reach.
- Top offshore jurisdictions have well-developed infrastructure, from internal container depots (ICDs) to internet networks.
- Low and straightforward tax regime.
- Privacy protection.
Registering Your Offshore Company
Now that you know the advantages of opening an offshore company, are you ready to incorporate it? Although some offshore jurisdictions, such as Hong Kong and the UK, have simplified the process of company registration, most investors still find it challenging. For example, it can be challenging to make multiple fights to London, Shanghai, or Hong Kong to register a company. This is why you should consider using an agency.
Agencies are firms of experts that are allowed by law to help foreigners register their companies. As professionals, it implies that they have the experience needed to prepare the required documents and complete the process of company registration fast. Let the experts help with company registration as you focus on logistics for operations, such as looking for more capital.
If you want your enterprise to reach the revered status of the leading multinationals, the first and most important step is registering it offshore. As we have demonstrated in this post, the benefits of registering a company offshore are many, and you should not be left behind as others take advantage of them. Make sure to work with an agency of experts to help you with registration and draw strategies for growth.