Tax Haven - FAQs

 
  1. Do you accept credit cards?
  2. What does Offshore IBC stand for?
  3. What is offshore asset protection?
  4. What are bearer shares?
  5. What is the guarantee that the information I provided for incorporation is kept in strict confidence in the tax haven?
  6. How long does it take to set up an offshore company?
  7. What offshore jurisdictions do you recommend for offshore incorporation and why?
  8. What information do I have to provide you in order to start the incorporation process?
  9. What are the maintenance costs for an offshore company?
  10. What is your policy on refunds? If I have paid for my company but never put it to use, can I get a total or maybe a partial refund?
  11. Do you provide offshore bank introduction as a separate service?
  12. Where can I open a bank account for my offshore IBC?
  13. What is the timeframe for opening of the offshore bank account?
  14. What would I need to open an offshore bank account for my IBC?
  15. Can I get a credit card from the offshore bank?
  16. Do I have to keep my IBCs’ financial records at the registered office?
  17. Can I transfer my existing offshore company to Dominica?
  18. Can I transfer the IBC incorporated in Dominica to other offshore jurisdictions in future if I decide to do so?
  19. What are the procedures to do the transfer of a company from one offshore jurisdiction to another?
  20. Do you sell shelf (vintage) offshore companies?
  21. Do you offer offshore merchant account services?
  22. What is the main difference between offshore foundations and offshore trusts?
  23. Can a trust be sued?
  24. Can a foundation own a company?
  25. What kind of assets can be held by an offshore foundation or offshore trust?
  26. Do trusts or foundations have to maintain records, keep accounts and hold meetings?
  27. Do foundations have to be renewed annually?
  28. Seeing that an LLC does not issue shares, how are the profits distributed between its members?
  29. What is the limited liability of an LLC?
  30. Do trusts engage in commercial enterprise?
  31. How does placing assets in a foundation or trust protect them from litigation and seizure?
  32. What is the UK Limited Company is it like an offshore company?
  33. Which do I choose, a UK LLP or a UK Limited Company?
  34. Are UK business entities taxes free like the offshore companies?

1. Do you accept credit cards?

Yes we do. We accept VISA, MasterCard and American Express over the phone, by fax or online.

2.What does offshore IBC stand for?

Offshore IBC stands for International Business Company. Such offshore company can only trade outside the country of incorporation or with another offshore IBC in the country of incorporation. There are no taxes or similar charges paid by such companies to the local governments.

3. What is offshore asset protection?

It is a transfer of your assets to a legal entity, e.g. from an individual to an offshore IBC, LLC, foundation or Trust (though a Trust is not a legal entity). That way, you are no longer a legal owner of your assets and it is more difficult to successfully sue you. The control over your assets still remains in your hands, whilst your assets are under the protection of tax haven legislation.

4. What are bearer shares?

Bearer share certificates do not have the name of the owner written on them. The certificate simply specifies that the person having physical possession of the document is the owner. Transfer of bearer shares is simple, because the transfer of the certificate accomplishes transfer of ownership. Bearer shares are not available in the Seychelles.

5. What is the guarantee that the information I provided for incorporation is kept in strict confidence in the tax haven?

We are in the business of providing offshore services and know the meaning of the word confidentiality. All personal information about our clients is kept in our office in Dominica. We do not sell, rent or disclose your information without your prior, written consent. However, we reserve the right to provide such information if you are involved in illegal activities in accordance with the laws of Dominica and a court decision has been made against your company. This right is also reserved for all the other jurisdictions for which we offer our services.

In Dominica the IBC Act under section 112 makes it an offence punishable by a fine of US $25,000.00 and imprisonment for two years for anyone including an auditor or official liquidator to reveal any information regarding the company, except by order of the court and solely relating to criminal activities.

6. How long does it take to set up an offshore company?

From Dominica it takes only one working day for us to send you the company documents; Seychelles and the BVI take between five and seven days; Belize, Nevis and Anguilla take three working days; and Panama and USA take eight working days. But please allow some time for the delivery of your incorporation documents. We use the best courier service providers available, it usually takes 1 to 5 working days for the company kit to reach you, depending upon your location.

7. What offshore jurisdictions do you recommend for offshore incorporation and why?

We provide incorporation services in the seven best offshore jurisdictions i.e., Dominica, BVI, Belize, Panama, Anguilla, Nevis and Seychelles. We also offer business entities in the USA (Delaware and Oregon), which under certain circumstances, may not be liable for taxes. We recommend incorporating in Dominica as a first choice because it is the quickest and the legislation is among the best. For those clients who require two companies in different jurisdictions or need some specific jurisdiction for any reason, we provide excellent choices.

8. What information do I have to provide you in order to start the incorporation process?

You would need to provide us with a copy of your current ID, containing your photograph. It can be a Passport, ID card, Social Security Card, or Driving License. We only require one of such documents. All your personal information will be kept in strict confidence in the jurisdiction of incorporation with the registered agent. Please refer to the answer for question 5 for additional information.

9. What are the maintenance costs for an offshore company?

Compared to other tax havens, Dominica, Belize and Seychelles offer the lowest maintenance fees. Each year the IBC has to pay Government fees and Registered Office and Registered Agent Fees, which we offer all together for as low as US $445.00 (without Nominee Services) or US $740.00 with Nominee Director Services. In other jurisdictions which we offer, annual maintenance fees are also relatively low. You can check all our prices on our fees and offers page

10. What is your policy on refunds? If I have paid for my company but never put it to use, can I get a total or maybe a partial refund?

We advise our clients to carefully consider whether they really want an offshore company before committing there funds. Our policy has to be one of no refunds either partially or fully because the work has been done and Government fees have been paid.

11. Do you provide offshore bank introduction as a separate service?

No. We only provide this service for clients who used our incorporation services.

12. Where can I open a bank account for my offshore IBC or LLC; and can I open an offshore account for my foundation?

You can open a bank account for your offshore company virtually anywhere but it depends on the bank policy and requirements of the law. The documents we provide are sufficient for this purpose. We also provide bank introduction services to reliable banks. We provide introductions to offshore banks in the Caribbean country of St.Vincent and to banks in European in Latvia, Switzerland, Tanzania and Cyprus. We also offer brokerage accounts for offshore companies as well. We recommend them for offshore investments and trading. We do not advise our clients to have an account in the United States for investment purposes. If you are a trading company and for business reasons need to open a bank account for an offshore company, we can assist you with that. Yes, as a legal entity a foundation can open and maintain bank accounts. All the banks we deal with provide online banking facilities and debit cards.

13. What is the time frame for opening of the offshore bank account?

It all depends upon how quickly you fill the application forms with the required documents and send them to the bank. We provide you with a checklist of all the requirements The forms you need to send to the bank will be enclosed in your company kit, if you choose to have a bank introduction service. The account activation normally takes 5 to 7 working days after they receive the application. Our firm will provide all the company documents.

14. What would I need to open an offshore bank account for my IBC or LLC?

The requirements for the account opening varies from bank to bank but we will lead you through all the procedure. We will FedEx you the offshore IBC documents and the application forms from the bank. You have to attach to the filled forms (which are straight forward) a photocopy of your ID (Passport or Driving License) and send it directly to the bank together with the rest of the required documents if any. The bank will activate your account upon the receipt of these documents.

15. Can I get a credit card from the offshore bank?

Yes. All banks that we suggest offer credit/debit card facilities for an offshore IBC.

16. Do I have to keep my IBCs’ financial records at the registered office?

There is no legal requirement to keep your financial records in the registered office. They can be kept anywhere. It is up to the discretion of the company directors.

17. Can I transfer my existing offshore company to Dominica?

The process of such transfer is called re-domiciliation. In Dominica it is permitted. You need to find out that the offshore jurisdiction of your original incorporation allows re-domiciliation. We would recommend and be happy to arrange your offshore IBC re-domiciliation to Dominica.

18. Can I transfer the IBC incorporated in Dominica to other offshore jurisdictions in future if I decide to do so?

The laws in Dominica allow re-domiciliation. You will have no problems whatsoever to do that.

19. What are the procedures to do the transfer of a company from one offshore jurisdiction to another?

As a main requirement, the original country of incorporation should allow this to happen. You would also need to produce the following offshore IBC documents: prepare a Continuance application, which includes its existing Charter documents and all amendments; a decision of the Board of Directors to continue in the Commonwealth of Dominica. After the transfer a corporation must adopt local bylaws (Memorandum and Articles of Association) to comply with Dominica Laws. The Registrar will issue the Certificate of Continuance after filing the above documents. Your offshore company is considered to be valid and existing from then on. Upon receipt of the legal opinion from Dominica you will have to apply in your original jurisdiction for the company name to be struck off from the Registry of the company’s’ original domicile.

Unfortunately some countries do not allow re-domiciliation (e.g. Jersey, Guernsey, Ireland, and Bermuda). You might consider another option — straight incorporation of an offshore IBC in Dominica with the same name.

The timescale for offshore IBC formation is two working days after.

20. Do you sell shelf (vintage) offshore companies?

You can find the list of the offshore vintage companies incorporated in the last Millennium on “Our Fees and Offers” page. All our vintage offshore companies have never been in use and have a 100% clean history. You can also amend the original incorporation details as regards to the share capital, share currency, etc to suit your needs. All these amendments will be done at no extra cost to you within one working day.

21. Do you offer offshore merchant account services?

We can arrange offshore merchant account services for your offshore company through our partners.

22. What is the main difference between foundations and trusts?

Upon registration the foundation is a legal entity. It can therefore open bank accounts, it an enter into agreements or contracts, it can legally undertake business activity. The assets in a foundation are legally owned by the foundation. The trust does not acquire a legal persona, in fact the trust is merely a formal agreement between parties. The assets in the trust are under temporary custody (ownership) of the trustee until distributed to the beneficiary.

23. Can a trust be sued?

No. A trust is not a legal entity therefore cannot sue or be sued.

24. Can a foundation own a company?

Indeed it can, in fact it is precisely this arrangement that we promote for best asset management. The offshore company formed will transfer legal ownership to the foundation, thereby giving up ownership. Who ever owned the company before no longer legally owns it, and the company cannot form part of the original owner’s estate. Claims upon original owner cannot include the company. The company as an asset is protected as it is not owned by an individual or individuals but rather the foundation. The former shareholders of the company are protected.

25. What kind of assets can be held by an offshore foundation or trusts?

All types of assets (tangible or intangible) can be held by the offshore foundation or trust. Including shares and stocks in both quoted and private companies, investment portfolios, jewellery, real and intellectual property, bank deposits, Life insurance policies and most any other type of asset.

26. Do trusts or foundations have to maintain records, keep account and hold meetings?

No they are not required to do any of these, except in Nevis.

27. Do foundations have to be renewed annually?

Yes. Your registered agent will invoice you and pay the required fee on your behalf.

28. Seeing that an LLC does not issue shares, how are the profits distributed between its members?

The LLC members should enter into a legally binding operating agreement stipulating the rights of each member and to include also, the percentage distribution of earnings between members.

29. What is the limited liability of an LLC?

The LLC’s liability is limited to its net assets and the members liability is limited to there contribution made or committed to the financing of the LLC.

30. Do trusts engage in commercial enterprise?

Trusts are not intended to participate in commercial enterprise but may invest its assets to the benefit of the beneficiaries. A Trust may however, hold shares in an IBC which in turn may undertake commercial activities.

31. How does placing assets in a foundation or trust protect them form litigation and seizure?

By placing your assets in a Foundation or Trust, you have relinquished ownership of these assets though they can still be of benefit to you through your life time.

32. What is the UK Limited Company is it like an offshore company?

The UK ltd. company certainly not an offshore company. Offshore companies are designed specifically for offshore use and cannot be used by residents in the jurisdictions where they are incorporated. The UK Ltd. company can be used by local residents and nationals of the UK as well as non-residents.

33. Which do I choose, a UK LLP or a UK Limited Company?

Which type of UK business structure you choose to register is a matter of personal choice: UK LLPs have a simple organizational structure, and more reporting requirements than the UK Limited companies? Besides simple structure, the UK LLP has limited liability and provides the personal assets of the members’ equal protection as the UK limited company would.

34. Are UK business entities taxes free like the offshore companies?

No. Only the IBC and LLC that we offer are under offshore jurisdictions are tax free companies. UK companies are required to pay corporation tax, register for VAT and submit annual returns accordingly. The UK LLP is a pass through entity, it does not pay corporation tax but the members are required to pay income tax. We do offer UK Business structures that can be organized in such a way to reduce or eliminate taxes. For example if a UK LLP is set up with two partners (which are offshore companies) an entirely tax free structure can be achieved providing that all income is sourced strictly outside the EU region.