Structure and Registration Procedures of Offshore Companies
What`s the difference between a domestic company and an offshore company?
In terms of the internal structure - there is very little difference! An offshore company is quite simply the same sort of legal entity (a corporation), only registered outside the domicile country of its owner(s). Historically, though, the term "offshore" has been narrowly associated to a company, which is not only formed outside the home country of its owner, but also has a number of benefits, that are not exactly available back home. An onshore corporation pays income tax (sometimes, lots of it), an offshore company is tax-free. An offshore company is also free from financial reporting and mundane book-keeping requirements. To form an offshore company, its owners don`t need to come up with big paid-up capital. Offshore corporation is not required to register its shareholders on a public file. It`s easy and quick to register, simple to operate and maintain. Apart from those "perks", the internal structure and management principles of an offshore company are still largely similar to those of any "regular" business corporation.