Offshore Company Formation

Contact Us to Get a Free Consultation session on Offshore Company Formation. Consultation will be held in our office at Kuala Lumpur

Help Me to Setup An Offshore Company

 

What is Offshore Company ?

The term offshore company refers to either:

  1. A company which is incorporated outside the jurisdiction of its primary operations regardless of whether that jurisdiction is an offshore financial centre. For example, a Singapore company may be ‘offshore’ for the purposes of a Malaysian citizen ; or,
  2. Any company (resident or otherwise) incorporated in an offshore financial centre or offshore jurisdictions

OFFSHORE COMPANY FORMATION

By setting up the offshore company, the companies and individuals will be able to enjoy a full range of attractive tax benefits offer by the various jurisdictions and this is a good  and effective tax planning tool.

Now, you can setup an Offshore Company here, in Malaysia with MalaysiaWills.com. You can also setup a Shelf Offshore Company via our Malaysia & Singapore Company Secretary Service.

What Is An Offshore Company?

An offshore company is a company which generally excludes conduct of business in its country of incorporation. Hence, the company is free of its home government interference and it can be incorporated to enjoy low tax rates. It is also called an offshore IBC (international business company) or non-resident company. An IBC is frequently used in international trade; provision of services; as a holding or the making of investments; for ownership of real estate; for ownership of intellectual property, licensing and franchising.

Two key characteristics of an offshore company are:

  1. It is incorporated under the offshore company regulations of the relevant offshore jurisdiction.
  2. It does not conduct any substantial business within the offshore jurisdiction where it is incorporated.

Is Offshore Company For Everyone?

Maybe not everyone. But an offshore company can be your options to asset protection,  privacy, tax-free trading  and more. With proper and effective tax planning,  business owners can get to manage and monitor their assets and enjoy their tax benefits gained.

Benefits Of Setting An Offshore Company?

An offshore company is a flexible business vehicle  and as such can be integrated as part of tax planning and asset protection arrangements. Reduced or deferred tax liability and confidentiality are just two of the list of benefits which can be achieved with an offshore company.

Among many common reasons to setup offshore company are:

Offshore Company Benefit #1: Tax Saving

Business may be structured so that profits are realised in ways that minimise the overall tax  liability. Offshore company can be established in low or no tax jurisdictions.

Offshore Company Benefit #2: Simpler Business Administration

Except for regulated businesses, such as bank or other financial institutions, most offshore company jurisdictions make them relatively simple to set up and maintain companies.

Offshore Company Benefit #3: Asset Protection 

In some jurisdictions, it is possible for assets to be held through an offshore company without disclosure of ultimate beneficial ownership. It is possible to organise assets and transactions in such a way that assets are shielded from future liabilities.

Offshore Company Benefit #4: Easy and Simple Reporting

The level of information required by the registrar of companies varies from jurisdiction to  jurisdiction.Generally, the offshore company information required is very minimal for most jurisdictions.

Offshore Company Benefit #5: Privacy / Anonymity 

By carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation.

Offshore Company Benefit #6: Less Stringent Regulation 

An offshore company is usually governed under less stringent regulations for governance, such as rules on meeting, financial disclosures, etc.

Offshore Company Benefit #7: Global Investing Opportunities

Investors find it convenient to have a tax efficient offshore company from which to make their investments on a regional or global basis

Offshore Company Common Questions #1: How Much Does It Cost To Set Up An Offshore Company?

It is reasonably affordable to set up an offshore company and different jurisdictions command different set-up fees. Generally, there are two types of fees incurred for  setting up and annual maintenance fee of an offshore company. Fees quoted below are from MalaysiaWills.com, we offer the most value for money setup fee in the market. Our track record shows that from Jan – Sept 2011, we have helped setup over 100 offshore company , which means 1 offshore company was setup every 3 days by us this year.

Offshore Company Formation Comparative Table

* These are just a few, if you require more jurisdictions, please send your requests to info@malaysiawills.com

JURISDICTION Type of Company Minimum Number of Directors Minimum Number of Shareholders or Equity Participants Taxation on Foreign Profits Local Directors / Secretary Required Requirement to File Annual Returns or Similar Registered Office / Agent Corporate Directors Permitted Requirement to Submit Accounts
Anguilla IBC 1 1 NIL No / No No Yes / No Yes No
Bahamas IBC 1 1 NIL No / No No Yes / Yes Yes No
Belize IBC 1 1 NIL No / No No Yes / Yes Yes No
Bermuda Exempt 2 1 NIL Yes / No No Yes / Yes No No
British Virgin Islands BC 1 1 NIL No / No No Yes / Yes Yes No
Cayman Islands Exempt 1 1 NIL No / No Yes Yes / Yes Yes No
Delaware Corporation 1 1 NIL No / No Yes Yes / Yes No No
Hong Kong Private Limited 1 1 NIL No / Yes Yes Yes / No Yes Yes
Mauritius GBC1 2 1 15% Yes / Yes Yes Yes / No No Yes
Mauritius GBC2 1 1 NIL No / No No Yes / Yes Yes No
New Zealand Limited by Shares 1 1 NIL No / Yes Yes Yes / No No Yes
Panama Sociedad Anonima 3 1 NIL No / No No No / Yes Yes No
Seychelles IBC 1 1 NIL No / No No Yes / Yes Yes No
Seychelles CSL 2 2 1.5% No / Yes Yes Yes / Yes No Yes
Singapore Private Company Limited by Shares 1 1 NIL Yes / Yes Yes Yes / No No Yes

Offshore Company Formation Cost offer by MalaysiaWills.com

* These are just a few, if you require more jurisdictions, please send your requests to info@malaysiawills.com

Jurisdiction 1st year Fee 2nd Year Onwards Fee Optional Fee
(Incorporation Package) (Annual Fees) Corporate Nominee Director Fee Corporate Nominee Shareholder Fee Hold Mail Service (in Singapore)
BRITISH VIRGIN ISLAND (BVI) USD1950 USD1260 USD1000 USD500 USD350
SEYCHELLES (IBC) USD1300 USD1025 USD1000 USD500 USD350
HONG KONG USD2434 USD1434 USD1000 USD500 USD350
MAURITIUS (GBL2) USD1900 USD1350 USD1500 USD500 USD350
ANGUILLA USD1800 USD1100 USD1000 USD500 USD350
PANAMA USD1900 USD1200 USD1000 USD500 USD350
BELIZE USD1800 USD1100 USD1000 USD500 USD350
BRUNEI USD1900 USD1500 USD1000 USD500 USD350
BAHAMAS USD1600 USD1000 USD1000 USD500 USD350
SAMOA USD1500 USD1200 USD1000 USD500 USD350
MARSHALL ISLANDS USD1550 USD1100 USD1000 USD500 USD350
NEW ZEALAND USD2400 USD2200 USD1000 USD500 USD350
SINGAPORE SGD1950 SGD1460  SGD5000 SGD3000 SGD350

Extra Notes based on table above

  1. Administrative, Accounting Services, Annual Auditing and Tax Filing Fees – based on time spent and charged at prevailing hourly rates
  2. Exclude Disbursements – all out of pocket expenses including telephone, facsimile and travelling expenses
  3. Exclude courier charges if delivers outside Singapore
  4. Payment
    • Incorporation and pro-rated first year fees are payable in advance
    • Annual fees are payable on 1st January each year

5. Fee quoted based on standard Constitution/Memorandum & Articles of Association and standard authorized capital
6. Corporate Secretarial Services Fee – Pro-rata portion is payable to 31 December in first year
7. For Singapore, we will also need to collect a refundable security deposit of SGD$8,000 and an indemnity is given by the company to protect our individual nominee directors’ interest

 

Offshore Company Formation Cost (1st year): Referring to the Table above, the Initial Setup Fee of an offshore company includes

  • Name Search / Reservation of Name
  • Incorporation/Acquisition
  • 1 Year provision of corporate secretarial services
  • Registered Agent/Office Fee
  • Opening of bank account
  • Certificate of Incumbency (requires for bank account opening)
Standard Kit includes
  • Official Certification of Incorporation
  • Memorandum & Articles of Association (4 sets)
  • Common Seal
  • Company Stamp
  • Company Share Certificates
  • Statutory Registers
  • Affidavit of Guarantee of Quality

Offshore Company Formation Cost (2nd year): Referring to the Table above, the Maintenance (2nd year onwards) of an offshore company includes

  • 1 year provision of corporate secretarial services
  • Annual Government Licence Fee
  • Annual Registered Agent/Office Fee

Offshore Company Common Questions #2: Is there other services and the cost involve to setup an offshore company?

There are additional Offshore Company service provided by us. However, cost will be provided upon request only.

  1. Provision of Nominee Corporate Director
  2. Provision of Nominee Corporate Shareholder
  3. Provision of Hold Mail Services or Corresponding Office Address
Other ad-hoc services includes: (to be quoted upon request only)
  1. Application for Certificate of Incumbency
  2. Application for Certificate of Good Standing
  3. Application for Registered Agent Certificate
  4. Certification of Corporate Documents
  5. Obtaining a Legal Opinion Letter
  6. Drafting Power of Attorney
  7. Accounting Services, Preparation of Financial Statements (if required)
Offshore Company Common Questions #3: How can you assist us in Bank Account Opening ?
We will assist you in preparing the following necessary documents required for opening a bank account for offshore company:
  • Director Resolution for Opening a Bank Account
  • Certified True Copy of M&A and Certified True Copy of Certification of Incorporation
  • Application for Certificate of Incumbency
  • Application for Certificate of Good Standing (if required)
Offshore Company Common Questions #4: What are the Banks that we normally use to open Bank Accounts for Offshore Company ?

The initial setup fees in the table above “Cost To Set Up An Offshore Company” is inclusive of Opening of Bank Account. There are many banks that we use but the common ones are HSBC Bank, Standard Chartered Bank, Citibank, OCBC Bank, DBS Bank & ANZ Bank.

Offshore Company Common Questions #5: What is the minimum deposit that we need to put in the Bank ?

Depending on various standards of the banks, we can check the updated minimum deposit with your preferred Bank once you have identify which bank do you want to setup your offshore company account with.

Offshore Company Common Questions #6: Can I open a offshore company and have the bank account open in Malaysia?

No. This defeats the purpose of opening an offshore company. Malaysia has capital control, which means money can not flow freely outside Malaysia. We suggest that you open a bank account in Singapore or Hong Kong. To open a bank account, most bankers will need to personally see the beneficial owners of the offshore company. This means that you will need to personally go to Singapore, we’ll arrange our staff to assist in your account opening.

Offshore Company Common Questions #7: How fast can I get my offshore company setup and bank accounts ?

For shelf company, we can setup within 24 hours. For new offshore company incorporation, it’ll take 1 week. For bank accounts, it’ll take 1 week because banks will need to conduct due diligence checking.

Offshore Company Common Questions #8: What are the documents needed to setup an offshore company ?

Certified proof of identity of owners, directors, account signatories and all connected parties. Proof of residence of all parties eg original bank statement, original utility bill showing residential address within the last 3 months, phone bill, credit card statement, ID card which bear the residential address.

Offshore Company Common Questions #9: Can you provide me a list of shelf offshore company ?

Yes, we are able to provide you a list of shelf offshore company. However, you’ll need to tell us which jurisdiction that you wish to setup your offshore company with. If you are not sure, we are able to provide free consultation on the best location to setup your offshore company based on a 10 minutes phone assessment with you.

Offshore Company Common Questions #10: I am a company secretary firm in Malaysia that do not provide offshore company formation for clients, can I work with MalaysiaWills.com to value add to my clients ?

Yes, we welcome friendly partnerships with local company secretariat firms. Our support includes organizing seminar, talks, workshop, training to your staffs & meeting up with your clients to assess which offshore jurisdiction is best for them. To find out the various ways of partnership, feel free to contact us . We are glad to answer your questions.

Offshore Company Common Questions #11: What are the steps required to setup an offshore company ?

Offshore Company Setup Step 1. after consultation session with us and you are ready to setup an offshore company, you’ll need to let us know whether you plan to incorporate a new company or acquire a shelf company. And at the same time, propose 3 names for name check. There’ll be no charges for this service. If you require a Shelf Offshore Company, we will email you a list of Shelf Company (together with the year of incorporation) for you to choose from.

Offshore Company Setup Step 2. Complete the Company Acquisition Form (we will only email this form to you upon request) and prepare a documents like a certified copy of passport & proof of address. This is to help us identify the client and the beneficial owner. Also state the nature of business,  initial share capital and currency.

Offshore Company Setup Step 3. Complete Due Diligence Process. Certified proof of identity of owners, directors, account signatories and all connected parties. Proof of residence of all parties eg original bank statement, credit card statement, utility bill, phone bill, ID card which bear the residential address.

Offshore Company Setup Step 4. Payment of Initial Setup Fee. Please refer to table above on Cost To Set Up An Offshore Company

Offshore Company Setup Step 5. Post incorporation documents will be prepared

  1. Consent to Act as Director
  2. Consent to Act as Secretary
  3. First Board Resolution
  4. Issuance of Share Certificate
Offshore Company Setup Step 6. Statutory Records of Company will be prepared
  1. M & A
  2. Certificate of Incorporation
  3. Appointment of First Director
  4. Register of Directors
  5. Register of Members
  6. Register of Secretary
  7. Company Stamp & Company Seal
Offshore Company Common Questions #12: I am interested to Open an offshore company, do I need to produce the original documents stated above ?
Yes, you’ll need to produce the original documents required when you meet with us personally at our office at International Plaza, Singapore. But during our initial phone & email communication, you don’t need to produce the original, only email a copy for us to preview.
Offshore Company Common Questions #13: My partner and I want to be joint director & shareholder of the offshore company. Do we both need to be present personally in front of the banker ?
Yes, both will need to be present personally during the opening of the bank account. We will need to personally meet with the ultimate beneficial owners of the offshore company.
Help Me to Setup An Offshore Company
[ Short URL ... ]

To Get Updates on FREE Seminars

Follow Us Online