6 things to consider when going offshore in 2017

When the day has come and you, as the owner of the business, decided to choose an offshore jurisdiction for your company – the journey has only just begun. Sometimes starting a new business offshore or moving your existing business to another country can help you grow and develop. OffhoreLicense Ltd knows, that executives are sometimes struggling to choose an offshore jurisdiction because they do not know what to consider first when moving. We chose 6 things that will help our customers decide whether they need to do business offshore.

1. Legislation and legal opportunities. Business regulation laws in domestic country sometimes are strict and oppressive for business. This means that there is a need for company founders to choose most advantageous places to do business. It seems everyone has heard about Cyprus, British Virgin Islands, Switzerland its loyal legislation for internationally based companies. Offshorelicense Ltd recommends our customers to choose what is most important in legal area: confidentiality, low taxation, company registration procedure or something else. Only when these moments are clear, you can choose the most suited country for your business, which offers best legal conditions for the company.

2. Financial reasons. Businesses, especially newly started, are not always profitable enough not to think about the optimization. In domestic country, taxes can be unbearable and startups can lose their chance for success. There comes a day when you need to choose the best taxation jurisdiction or country where manufacturing expenses are the lowest. Delaware state, for example, is known as the best location for IT-business, Eastern Europe - for agricultural and so on. Depending on business perspectives and goals, necessary payments can be reduced in chosen country and, as a result, business will bear only necessary expenses.

3. Banking facilities and reliability. When the jurisdiction is picked and founder or CEO of business comes to opening a bank account, more questions arise. Mostly, reliability, absence of additional fees for entrepreneurs and high-quality client services are considered. Reliable bank facility allows owner to feel secure and to pay more attention to developing business itself while having their back. In most cases, best choice will be opening account in the EU bank. However, depending on the main jurisdiction you want to select for your business, decision on the banking facility should be made.

4. Company formation and required documents. Different jurisdictions require various actions for registering company. When you have chosen country for opening business, you need also to select form of doing it. Limited liability companies, limited by shares or limited by guarantees – there may be more than 10 variations in some countries. This means you need to analyze company registration process to fasten registration process, choose statutory capital size, and let yourself choose board of directors or shareholders easily. In some cases, you even need to conduct a comparative analysis to consider all necessary business establishment points.

5. Communication process and language matters. Everyone is aware that matters of mentality and communication are crucially important in business. When all technical solutions are chosen, founder needs to think about human factor in his activity. Offshorelicense Ltd helps you to determine which countries work with English-speaking of multilingual companies. In addition, we assist our customers in analyzing human resources and if you need only English-speaking personnel, we are ready to tell how likely it is to find enough employees in chosen country. Easing business communications will help your company grow faster and use instruments that are more effective. Also, we advise entrepreneurs to choose the most suitable time zone: to control and maintain your offshore company at any time and to avoid any urgent problems you cannot solve.

6. Avoiding double taxation for your company. Contract work is a significant part of any company’s work. Analyzing your requirements, you can choose treaty or non-treaty jurisdictions. Basically, if OffhoreLicense Ltd customers mostly work with contractors fr om different countries – best choice for taxation will be treaty jurisdiction. Then it will benefit all your incomes and also be profitable for partners. In other situations, it is better to use non-treaty jurisdiction, which mostly requires fixed payments from the income and they work better when company has a very limited number of international partners.

As you have understood from the recommendations above, business owner or founder should consider many different moments while choosing offshore jurisdictions. Offshorelicense Ltd is a personal assistant for every customer and we are ready to take on every important part of moving your business offshore. Starting or relocating the company is complicated and if you need our professional help – contact Offshorelicense Ltd managers now.