Setting up an offshore company should be done by someone who specializes in such matters. These are usually incorporation agents. However, here are a few things you need to know about the set up:

• Choose the country for your company
• Determine the type of entity you wish to use for your company
• Choose your company’s name
• Draft the Articles of Association
• Determine the method of funding your company
• What method you will use to issue shares
• Determine the directors of your company

It is often advisable for foreign domiciliaries to have at least three overseas bank accounts:

• The first account for existing capital
• The second account to deposit the proceeds of any asset disposals
• The third account to contain the interest from the first two accounts, along with any other foreign source income

Note: The aim is to segregate your foreign income or gains.

If you want to bring money into the country you should first remit

If you have an offshore company, you can invest in any part of the world. Although some taxes will still need to be paid, many can be avoided. One of the biggest taxes you can avoid will be the capital gains tax.

Best Places for Offshore Companies (based on the tax rate)

Country Corporate tax rate %
Bermuda 0
Cayman Islands 0
Channel Islands 0-20

One way to do this is to create an incorporated company as part of a trading group. This means that the offshore company will either purchase or resell goods between other group members. This essentially means that you can earn and deposit your profits in a country with a low-tax or no-tax jurisdiction.

Some of the lowest jurisdictions in terms of taxes are:

• Cyprus
• Ireland
• Isle of Man