1. What do you mean by "Offshore"?

Offshore basically means any jurisdiction outside the EU, US and other major financial areas which provides a favourable tax regime from which to conduct business.

2. Are all offshore companies tax-free?

Not necessarily. Many provide for tax-free trading on condition that this takes place outside of the jurisdiction itself. There are others which pay a small percentage of the domestic tax rate but these often include access to the jurisdiction’s double taxation treaties which can be beneficial in certain circumstances.

3. What is an IBC?

An IBC is an International Business Company which is the most popular form of company incorporated in offshore jurisdictions. They are a separate legal entity from the owner and allow business to be conducted tax free outside the jurisdiction of incorporation.

4. What are offshore companies usually used for?

They can be used for much the same purposes as any company incorporated in an onshore location. Some of our clients use them to conduct international trade; hold assets or intellectual property (trade marks, patents, manufacturing rights, copyright etc); operate as consultancy or service companies and to conduct on-line business. See our “Uses” page for more examples.

5. What company name can I choose?

In theory you can choose any name that is currently not used on a particular jurisdiction’s company register. However, you must use common sense and not use names which are internationally known brands etc. For example, whilst you might be able to form a company in an offshore jurisdiction called “Microsoft Corporation” it wouldn’t be too long before Mr Gates lawyers were knocking on your door with a lawsuit.

Most jurisdictions allow a choice of all popular company endings such as Limited, Ltd, Corporation, Corp, Incorporated, Inc, SA, etc. Proform are happy to give advice and to check any name for availability free of charge.

6. What is a nominee director?

A nominee director is a person or company appointed to act as a director on behalf of someone else. The nominee’s name appears at the company registry in place of the real controller of the company.

7. Why would I want a nominee director?

The main reason to appoint a nominee director is to keep the real identity of who controls the company totally private and confidential. This could be for a variety of reasons including tax purposes or to stop competitors knowing who you are.

8. How do I know the nominee director won’t empty the company’s bank account?

Firstly, our nominees will not act as bank signatories. You, or whoever you appoint, will have full control over the company’s bank account. Generally the nominee will have to sign the initial bank account application form as a director but that form will be appointing you as the signatory.

9. If I am not the director, how can I control the company?

As part of the package you receive will be a nominee director declaration and a power of attorney. The nominee director declaration states that the director will only act on your instructions. The power of attorney would grant you the power to act on behalf of the company as though you were a director.

10. What is a nominee shareholder?

A nominee shareholder is a person or company appointed to hold the share or shares in a company on behalf of someone else. The nominee’s name appears at the company registry in place of the real owner or owners of the company.

11. Why would I want a nominee shareholder?

The main reason to appoint a nominee shareholder is to keep the real identity of who owns the company totally private and confidential. This could be for a variety of reasons including tax purposes or to stop competitors knowing who you are.

12. What is a bearer share?

A bearer share is a share certificate that is issued with the words “issued to bearer” in place of an actual persons name. This means that whoever physically holds the share certificate owns that share. These are becoming less popular, and even outlawed in some jurisdictions.

13. What is a registered agent?

Many offshore jurisdictions require that a local registered contact is available that the company registrar etc can deal with. Generally the registered agent will be the local company that actually forms the company and provides registered office services. Provision of a registered agent, where required, is included in our fees.

14. What is a Registered Office address?

All companies, offshore or onshore, are required to provide an addressed with the jurisdiction where official documents can be served. This address is purely for the receipt of such documents and not a general mailing address. If you require a mailing address/mail forwarding service please contact us.

15. If I buy a shelf company, how do I know it doesn’t already have debts?

All shelf companies we sell have never traded and are clean and clear in all respects. They have been formed and then “sat on the shelf” hence the name. All shelf companies come with our non-trading certificate guaranteeing this.

16. What is a beneficial owner?

This is a term used in the offshore industry to refer to the actual owner or owners of a company which has nominee director and shareholder appointed.