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Company Formation Home Page >> How Do I Register a Business in the UK? >> Offshore Company FormationsOFFSHORE COMPANY INCORPORATION SERVICE. TAX-HAVEN COMPANY FORMATION How to set up an offshore business? What types of offshore entities are available? What's the point of establishing an offshore LLC or IBC? What is an offshore ready-made company or offshore shelf aged company? Coddan CPM LTD offers you highly cost-effective and professional, offshore incorporation service. Registering an Offshore IBC with Coddan CPM LTD is easy and provides the major benefit of establishment of tax efficient structures, through existent double taxation treaties with major economies of the world. Coddan specialises in all legal ways in arranging suitable and lawful offshore structuring both for your business and private deals. Coddan incorporate offshore companies, offshore trusts, offshore foundations, set-up offshore bank accounts, banking licenses and insurance companies.
We have helped many thousands of our clients achieve fast, safe, private, and affordable, legal tax deferral and investment benefits, guiding them every step of the way. We can offer the same opportunities and peace of mind to you - it is much simpler than you ever thought possible. Going offshore with your finances is the first step towards reclaiming your personal and financial privacy, and protecting your, family's, and your own future well being. Contrary to popular belief offshore banking, planning, and asset protection is 100% legal under the law! We provide the opportunity to quickly and easily establish these offshore banking facilities, companies, offshore trusts and the like, with our assistance every step of the way.
Coddan CPM LTD grants your privacy, security and confidentiality. A brief telephone conversation with one of our consultants or completion of an online order form is all that is needed to start the offshore incorporation process. To proceed with incorporating tax-haven company, please call us on Call FREE 0800 081 1510, Overseas Residents: +44 845 020 4269 or +44 20 7060 0382, Fax: +44 20 7681 3318 or ORDER ONLINE. Coddan CPM formations would like to wish you every success in your new venture and hope that we will be able to make the whole experience a pleasure. If you require further assistance with your new company please do not hesitate to contact us.
The specialist services which we provide for our clients embrace the formation of a variety of offshore corporate and tax-haven trust vehicles, for purposes ranging from international trading, intellectual property activities, securities and property holding, to financial and estate planning through trusts. By correctly structuring an investment or business activity within a company incorporated in an offshore location, it is generally possible to operate in a tax efficient manner with a minimum of bureaucratic interference. When used in conjunction with an offshore trust, an offshore corporation can form part of a very effective international financial or estate planning structure. Coddan forms companies in all the major offshore centres including the BVI, Cyprus, Belize, Nevis, Gibraltar, Panama, Seychelles, Bahamas, Costa Rica, Jersey, Guernsey, Venezuela, Portugal, Uruguai, Mauritius and Hong Kong. For more detailed information on each of our offshore services please go to our Offshore Services Page and peruse the various services that we provide. We offer Delaware and Nevada Structures, Offshore Trusts, Tax Haven Companies and Offshore Mutual Funds. Thank you for considering our services and we look forward to helping your business with all its offshore business needs.
We have many optional services from which a client may choose. Among the options, we have available for immediate use, offshore readymade companies and off the shelf companies. None of the shelf offshore business entities have ever been in use or ever held a bank account.
Our firm is dedicated to providing practical pragmatic solutions to business problems, asset protection and estate planning issues. Whether it is a renegotiation of a contract, forming a new business, planning for prospective creditor suits, or just updating your will, we can help.
Within the realm of legally prudent yet creative and practical solutions, we strive to provide options for our clients. Our attorneys are comfortable irrespective of whether the problem is a complex Asset Protection Structure, an Offshore Business Formation, or a common Commercial Transaction. The firm also has a core competency in integrating the various components of the estate planning process (business ownership/operation, personal wills, family trusts, and respective tax implications) into an integrated estate plan with sensible asset protection components. Our tax counsel, with a focus on estate planning and asset protection, provides a valuable adjunct to the core business and personal planning competencies of the firm.
We are active in business formation, integration and leveraging offshore business entities with new or existing asset protection structures in all of the major offshore jurisdictions. We form Offshore International Business Companies (IBC's), Foreign Asset Protection Trusts, and similarly specialized offshore components of Asset Protection Plans. In addition, we can provide valuable insight to optimize the US component of any prospective business or asset protection structure.
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| 1. An International Business Company is completely private.
2. Offshore IBC is TAX EXEMPT on all income earned worldwide.
3. Tax-Haven IBC DOES NOT file an Annual Return.
4. Off-Shore IBC's Corporate Records may be kept anywhere.
5. An IBC's Annual Meetings may be held anywhere in the world.
6. An IBC's Board of Directors Meetings may be held anywhere in the world.
7. The same person may act as the Shareholder, Board of Directors, President, and Agent or as any other Officer within the Company.
8. The Founder may appoint Officers and Directors for the IBC, but only the Founder will know their identities.
9. An IBC's Shareholders remain Confidential through the use of Bearer Shares.
10. A Director can be of any nationality.
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When thinking about asset protection and tax shelter, offshore companies and trusts are among the best ways of protecting wealth. Through our network of associates, located throughout the offshore world, Coddan can offer a very cost-effective yet efficient company formation service. Our services are designed for the entrepreneurs to operate their business and/or personal financial matters in complete confidentiality. The entrepreneurs will be so able to run the business in a complete privacy while residing in the country of their choice. We can arrange for all the necessary administration services, banking, etc. Set-up and operating fees vary with the types and complexity of the entities. After discussing your goals and requirements, we'll make the necessary recommendations. - Due to the ever increasing governmental pressure, a growing number of business and professional people are considering offshore options as an exclusive tax matter. This is a mistake. By trading or investing through an offshore company clients not only can realise substantial tax, exchange control and reduction of overhead-cost advantages. Also, if correctly structured, assets held by such companies are normally protected from legal, confiscatory.
What Is Offshore? Generally, offshore refers to a wide range of investment strategies that all occur outside of your home country. Sure there are some downright shady offshore investment companies, but there are plenty of good ones out there, ones that are fiscally sound, time tested and, most importantly, legal.
Advantages. There are several reasons why people use offshore investing as part of their portfolio:
Tax reduction - Many countries (known as tax havens) offer tax incentives to foreign investors. The favorable tax rates in an offshore country are designed to promote a healthy investment environment that attracts outside wealth. For a tiny little country with very little resources or population, attracting investments can dramatically increase economic activity in the country. In a simplified explanation, the way it works is that offshore investors form a corporation in the foreign country, which acts as a shell for the investors' accounts. Because the corporation does not transact in local business, little to no tax is imposed on your offshore corporation. What's even better is that many foreign companies enjoy tax-exempt status when they invest in United States markets. Making investments through foreign corporations can hold a distinct advantage over making investments as an individual.
Asset protection - Offshore centers are popular locations to restructure ownership of assets, whether through trusts, foundations, or an existing corporation. Many individuals who are concerned about lawsuits elect to transfer a portion of their assets from their personal estates to an entity that holds it outside of the country. This way these individuals are no longer susceptible to seizure or other domestic turbulence.
Confidentiality - Many offshore jurisdictions offer the complimentary benefit of secrecy legislation. These countries have enacted laws establishing strict corporate and banking confidentiality. If this confidentiality is breached, there are serious consequences. An example of a breach of banking confidentiality is divulging customer identities; disclosing shareholders is an example of a breach of corporate confidentiality. This secrecy doesn't mean that only drug lords and other criminals invest offshore. Offshore laws will allow identity disclosure in clear instances of drug trafficking, money laundering or other illegal activity.
Diversification of investment - In some countries regulatory commissions restrict the investment opportunities of citizens. To a large extent, this governmental posture is designed to protect investors, but many feel that such restriction hinders the establishment of a truly diversified portfolio. For example, registered retirement savings plans (RRSPs) in Canada (the equivalent of IRAs) are only allowed to have a certain percentage of assets invested outside of Canada. Offshore accounts are much more flexible, giving you unlimited access to international markets and to all major exchanges. On top of that, there are many opportunities in developing nations, especially in those that begin to privatize sectors formerly in the control of government.
As our world becomes smaller, and few businesses are local or even strictly national, there is an increasing need for internationalization. We think, plan and work with an eye toward expanding our horizons both at home and abroad. The use of a corporate vehicle as a means of this expansion is nothing new.
No longer will a domestic corporation satisfy one's needs. The average businessperson today is far more sophisticated than the businessperson of even ten to fifteen years ago. Corporate structuring and planning have achieved higher levels of complexity than ever before while the need for anonymity remains strong.
Entrepreneurs must keep pace and be constantly on the look out for new ways to profit. One way is to have a clear understanding of the characteristics of foreign corporations and how they may be put to advantageous use.
Most popular jurisdictions have a legal system derived from a major western country and greatly favor corporations which are non-resident in nature. Most professionals prefer their western style legislation since it provides a familiar basis for legal interpretation and facilitates understanding of their laws in international practice.
If you want to become familiar with the description and the contents of offshore companies incorporation packages, offered by Coddan and to find above, what kind of service is included in this or that offshore incorporation package, to get an idea about the price of annual renewal of the service, and about the general legal requirements to the tax-haven company registration within tax-haven jurisdictions, please, select the package you need from the list, situated below the banner. The information in the banner will be renewed according to the package you've chosen.
Offshore Companies: It has been estimated that 65% of the worlds hard currency is held in offshore banks and that around 40% of world trade in goods are transacted through offshore finance centre's. Offshore companies and/or offshore trusts are not the illicit hideaways that many would have you believe. They can in fact provide you with enormous tax savings and asset protection in a legal manner if setup correctly. They can also afford the ultimate beneficial owner a certain amount of anonymity. We have many Offshore ready made companies (offshore shelf companies), which are ready to trade, and can be transferred to you within hours. Click here for our Offshore IBC incorporation costs and full details of our packages for offshore companies or call us for free no obligation advice.
Here are some reasons to do it: to place your assets out of reach of greedy tax collectors and governments, vicious relatives or anyone wishing you bad. Your tax-free company may own an overseas property or just hold a bank account maintaining your anonymity. To make profit just keeping your money in an offshore bank. Interest rates there can be much higher than in any European or American onshore bank. To plan your business tax burden. You may direct your taxable income to your tax-free company, thus reducing tax substantially. To protect yourself. Your offshore tax haven may be of vital importance if a disaster strikes. Personal problems or a national catastrophe will be less painful for the prepared.
It is no longer necessary to wait for weeks to incorporate your company offshore or pay extortionate fees. Our online companies incorporation system allows you to register company throughout Europe, Asia, America, Caribbean and all over the world, letting you to put trading structures in place with a few mouse clicks. Every other day a new country is being added, allowing you to incorporate your company in over 50 onshore and offshore jurisdictions worldwide.
Live Help ยป Live Help is a real time "chat" feature which enables you to interact with a customer service representative without a phone call. Get answers to your questions while using our website. Clicking the "Live Help" button will start an on-line session with one of our representatives. Live Help is currently available during normal business hours. Outside of the above opening hours our business center will be closed. When you click on the button you will see an e-mail form that will allow you to send us a mail with your questions. Live Help is absolutely free! There are no hidden fees. We offer the service as a courtesy to our website visitors. Dear visitors, while having a chat session with a customer, we are frequently requested to give a piece of advice on tax planning or business structuring. We would like to inform you that it is against our principles to provide online advice pertaining to these issues. The points that may be covered during a session include service description, package or service price, navigation at our website, ways of making an order, methods of payment etc. Yet, if you wish us to provide you with advice on tax or business structuring, you should be aware that this service is chargeable.
OFFSHORE & TAX-HAVEN COMPANY FORMATION FROM £500.00. INCORPORATE AN OFF-SHORE COMPANY IN A TAX HAVEN: IN BVI, SEYCHELLES, CYPRUS, HONG KONG, GIBRALTAR AND PANAMA: Are you looking for a safe tax haven for your investments offshore? Do you consider going offshore for the first time? Are you planning to incorporate an offshore corporation (IBC) together with offshore bank account? Do you wonder how to reduce capital gain tax with the help of offshore havens? We are providing direct low cost offshore IBC formation services with possibility to check company name availability online and offshore companies' incorporation in real time mode! An International Business Corporation or IBC is a corporation that is registered in an offshore tax haven and is typically authorized to do business anywhere in the world except its home country (i.e. if your IBC is formed in BVI you may do business anywhere in the world except BVI).
Coddan has held a marvelous record in providing services in company registration and management on all offshore centres across the globe. For those who are interested in starting a business in one or more of these lucrative jurisdictions, we can give you the opportunity and the assistance you need. At Coddan, we have complete solutions for off-shores company formations, registrations, management of finances and human resources, legal and real estate affairs, making us one of the most resourceful corporate management companies in the world. Our client base extends beyond geographical boundaries and to all forms of business entities, individual and corporate. In addition, we give you the opportunity to capitalise on the wealth of information gathered and refined by our expert analysts on various business related matters, in particular varying economic conditions and the influence on your business and the industry as a whole.
Cheap and fast offshore companies formation and online offshore bank accounts opening services in different tax havens are our specialty. Coddan specialises in all legal ways in arranging suitable and lawful offshore structuring both for your business and private deals. Coddan specialises in incorporating of offshore companies, trusts, establishing offshore bank accounts etc. Coddan grants your privacy, security and confidentiality. To do business today it is difficult to make a profit. You must constantly be aware of the best ways to run your business, so that the profits end up in your pocket and not in the vaults of the banks, tax department or with your competitors. The strong financial and professional backgrounds, including the availability of the offer of an integral package of services, represent currently one of the preferred reasons for which clients contact just Coddan. We have established business relationships with our customers that are based on trust and mutual benefit which we hope to enjoy for years to come.
In return our customers get committed offshore banking and professional offshore service. We have many optional services from which a client may choose. Among the options, we have available for immediate use, offshore shelf companies and off the shelf vintage companies; these ready-made offshore IBC's are the same except that the offshore vintage companies are older. None of the shelf offshore corporations have ever been in use or ever held a bank account. In other words these companies are all 100% tax-free and clean. We also offer offshore nominee director and/or nominee shareholder services.
Offshore locations have a great attraction for companies of all forms from all countries of the world. Coddan gives you the ideal opportunity to set up your own offshore entity without the need for being physically present. You are not restricted based on domicile or origin and you may control your company or an agent located on the offshore territory. The virtual certainty that 65% of the world's hard currency is held in offshore banks and that around 40% of the world's trade in goods, especially services such as consulting which are transacted through offshore international finance centres, proves that in spite of the problems with the Organisation for Economic Co-operation and Development (OECD), this is an area of massive growth and potential for both individuals and companies.
Regardless of changes that occur due to OECD pressure or a particular finance centres government, the question will always remain "which is the best jurisdiction to establish my offshore structure?" In actual fact the products offered by most Tax Havens are virtually mirror images of each other. The decision will largely depend on the quality of after sales service, objectives and goals of the purposed corporation or trust and the client's own personal and business circumstances.
The word "offshore" has often been linked to crime. This is a deliberate strategy of government and other vested interests. Sure, some criminals may bank their ill-got gains in an offshore account - but that doesn't negate the benefit of being offshore as a law-abiding citizen. And what they forget to tell you is that many offshore banks have quite stringent controls on who banks with them - and have their own reputation to protect. It's not in any bank's interest to be known as a haven for criminals. A great number of people use offshore structures for money laundering as well. Nevertheless all these matters the main purpose of going offshore is the privacy it affords you.
Our company is interested only in the main feature of offshore using. Well, it can be a means to legally decrease your tax burden. You may be able to defer, reduce and even eliminate taxes by following a carefully thought out strategy. You may want to do it for retirement planning - in this way your nest egg will grow without being continually "trimmed" back by various withholding taxes. The power of compound interest works much better when you're not getting tax deductions!
FORMING COMPANY IN TAX HAVEN. IS IT LEGAL? YES. It is absolutely legal to incorporate a company in offshore jurisdiction, establish an offshore trust, open a bank account and conduct other business in a offshore tax haven. However, you should check with a lawyer in your country to confirm these legalities. Each country has it's own policy. There are however a number of factors that must be considered, these are the principal indicators that determine the merits of a good offshore centre:
The offshore jurisdictions should not be subject to violent political factions, civil unrest, poor economic performance or the likelihood of invasion or military coup. Good telecommunications capabilities are more important than the location of the Tax Haven. By using state-of-the-art communications your chosen jurisdiction must be able send and receive electronic transfers, and your representative must be able to receive instructions by letter, telephone, fax, or telex or any other means. It is essential that you are able to have your instructions understood by your representatives, nothing is worse than going through two or three different members of staff, none of whom understand what you want.
Good legal foundation with modern corporation laws is essential. Jurisdictions who base their legal system on English common law, with local modifications, are very popular and this applies to any offshore centre, which was or still is under British control. Confidentiality and Secrecy. Acceptable levels of privacy are important and valuable when conducting business offshore. The offshore centre must have the ability to control and sanction unauthorised disclosure of information relating to its offshore clientele and their financial affairs. It is important that you can freely move your money in and out of the country. The best situation is to bank in a country with no exchange controls. Money that is restricted from movement can be easily subject to possible seizure. It is important to keep in mind that companies may open bank accounts in jurisdictions other than the jurisdiction of the corporation.
Banking and Professional Services. Selecting a bank for the corporate account is equally as important as selecting the jurisdiction for the incorporation. The jurisdiction should offer superior and state-of-the-art banking, as well as professional services such as accounting, legal, management and trust services, these should all be readily available if required. Jurisdictions that have no tax treaties with other countries are often the best choice unless the tax treaty fulfils a function in your tax planning. You should be able to conduct your business legally without unnecessary restrictions. Cost of Formation, Annual Fees & Services - these should be realistic and fulfil your requirements to an acceptable degree.
Although not of such great importance today as in the past, certain ingredients may be vital e.g. time zone, banking hours etc. The reason they are vital is because a 10-hour time difference means you are never open at the same time. A government that welcomes offshore business and possibly offers financial incentives sends a positive message to offshore investors. Many jurisdictions actively promote themselves as a tax haven and welcome offshore business and investment capital, while others just tolerate it. A government that does not completely support the activities of their offshore industry can adversely change their policy overnight. There are currently just fewer than 40 major offshore finance centres in the world. Offshore finance centres were formerly known as tax havens, but just like the Golliwog on the Robertson's Marmalade jar some things just don't quite fit into today's world! Especially with the OECD, FATF, IRS, EU, SEC and any number of other government bodies snapping at their heels.
What is very clear is that if any country complies sufficiently with OECD requests for exchange of information and tax changes, one thing is certain with nearly 40 major offshore centres and in excess of 30 minor players who would be keen to fill the gap, if the business was there, Offshore Finance Centres are not likely to become extinct for some time, the only thing that limits the number is the amount of clients who use their services, as with everything supply and demand dictates that not every country can be a tax haven! If you are a citizen of a country that does not tax income earned outside of its borders, an tax-free company can be most advantageous - your money can grow tax-free (and therefore a lot faster!) until it is repatriated. Some countries have tax systems like the UK and US - "global" taxation where all income is taxed regardless of where it is earned. If this is the case, you must declare any income earned when you file your return so there are few tax advantages.
However, many UK, EU and US citizens find another legitimate advantage to offshore companies - asset protection. In our increasingly litigious society, many people keep their nest egg offshore. It's much more private (the confidentiality laws of these jurisdictions are usually very strong) and it's much harder for potential creditors in a frivolous lawsuit to get at your money. Where there is a need, we can also provide management and administration capabilities for each company. This may include the provision of nominee shareholders, nominee directors and company secretary, day-to-day management and administration, secretarial services, accounting and audit, invoicing or establishing a "virtual office". Our business services department deals with two main areas of service. Offshore and administration services are a significant part of the department's activity. A broad range of financial advice and assistance is provided in the day-to-day administration of offshore businesses through qualified professionals who are fully conversant with commercial and banking practices.
Offshore business and administration services are geared towards providing support to offshore clients to enable them to become and continue to be operational. Computerized accounting and VAT services are another important function offered to all types of clients. Through the use of latest technology computer equipment and accounting software the department can handle complex and voluminous transaction processing for both local and offshore clients. Let's start with the decrease of liability. A big problem that goes along with opening a business is the high risk. One single mistake can mean the loss of all your property. However, there is no need to risk your home or personal finances. You can register a company in England, in the USA or in one of the offshore places and completely forget about liability. In the worst case, the company itself loses all its assets but you, your family, your bank account, your car, your house and whatever else there is to be protected, will be protected. The registration fees already include necessary deposits so that the company has its limited liability status right from the start.
Of course there are also types of companies that limit the liability in all European Countries, but in most of them you have to deposit a very large amount of money to register such a company, even though somebody starting a new business needs every single cent to survive and succeed. Worst of all - the laws in the countries that require the highest deposit for a limited liability company, e.g. Germany, also can easily make you personally responsible with your own private assets in case the company goes bankrupt. Of course you do not have to live in England or the USA to register your business there and profit from the less restrictive company acts available in these countries.
The second reason to register with us is the obvious tax advantages. To avoid or reduce taxes you can either form an offshore IBC (International Business Company) in one out of more than 20 countries or register a corporation, LLC or partnership in one of the three US-states Delaware, Nevada or Wyoming. For non-US residents we recommend Delaware as it has the lowest annual fees and offers a very good companies act. For U.S. residents we recommend the registration on an offshore island like British Virgin Islands, Nevis, Seychelles or Hong Kong. Forming an offshore corporation means that you only pay a fixed annual amount. The third reason for incorporation is that your business suffers less legal constraints due to other countries jurisdictions.
Of course that doesn't mean that you have to move your home to another country! It is sufficient just to register the company in another country. For example a company registered in the USA can easily do business in Europe. But it will enjoy more favorable conditions. The usual registration of a company in a European state like Germany or Austria takes several weeks, sometimes even several months. The registration of a company in the USA can be achieved within hours, and you do not even have to assign in person. You do not have to show any references nor have to prove your ability to run your business or have knowledge of legal procedures.
You also do not have to limit your company to certain fields of business. We can register your tax haven corporation for the widest range of services you can imagine. So if you want to expand and offer new services to your customers you do not have to apply for an enlargement of your existing company. You just do it.
INTRODUCTION TO OFFSHORE CORPORATIONS: First, you must understand the CFC rules. If an offshore corporation has any US shareholders who own 10% or more of the company's stock (or if U.S. shareholders in the aggregate own 50% or more of the stock), then it is considered under U.S. law to be a "Controlled Foreign Corporation," or "CFC", and the person who owns the stock must file an informational return as to the company and report (and depending on how it is set up, pay tax on) the company's income, etc., pretty much as if it were a US S-corporation.
Additionally, there are "attribution" rules which has the effect of greatly expanding this basic rule. For this reason, at least for US citizens there are absolutely no income tax advantages, and very few other tax advantages, to using an offshore corporation. Offshore corporations are great for facilitating international trade and for protection against creditors, but they are more or less "tax neutral". Offshore corporations are similar to domestic corporations, but they are incorporated in an offshore jurisdiction and are subject to the offshore jurisdiction's laws. The offshore corporations which we are concerned about typically cannot do business within the jurisdiction of their incorporation, except for investment purposes, etc. Such corporations are often referred to as "exempt companies" or more commonly "International Business Companies" or "IBCs".
Clients establish offshore trusts, corporations, LLP's relying, quite reasonably, on their advisor's recommendations. But clients often consider 'offshore' only in a general sense, sometimes without having much comfort in what it is they do know. In our experience, many clients initially know little about the day-to-day operation of the offshore corporate or trust structure put in place and the asset placement options, including banking. They can be unsure as to how a trustee operates a structure and deals with assets and what part, if any; they play in the process of investing them safely and productively. Despite the best marketing efforts to distinguish finely wrought legal advantages in one type or in one jurisdiction as opposed to another, corporations are, or are on the way to becoming, commodities. With some exceptions at both the bottom (Panama?) and the top (Bahamas?) of the price scale, they are, like all commodities, sold essentially on the basis of price as opposed to content or quality.
Their price is determined on a large scale where the particular jurisdiction or features of the corporation are not particularly important to the purchaser. As with other commodities, like wheat or money, profitability is determined by price, volume and convenience; one reason why successful 'corporation' jurisdictions like the BVI have upgraded their registry facilities to provide for electronic everything. Corporations in the offshore world exist by virtue of their registration, requiring the payment of annual fees both to the government and the administrator. Depending on the underlying system used in a particular jurisdiction they are special corporations available only to non-resident use, or as a special category of domestic corporation exempt local taxes. It is self evident that without payment of the required fees, a client's corporation can be entangled in complications unwanted by the client or the offshore jurisdiction.
The next thing to deal with is the common conceptual error made by many clients and even by some advisors. Who owns the company? While Coddan can provide a nominee shareholder and director, it does so only as nominee for the client. Coddan makes a declaration of some sort to this effect. To go further would involve Coddan as a participant in the client's actual affairs. Some jurisdictions permit companies to own their own shares and this process can be useful, though while it shields the client from legal or beneficial ownership it also means he may have a perception of having a tenuous link on the whole. He usually wants more. Very convoluted structures with other corporations formed to be shareholders, directors, or advisors, to the first can result.
There are other control or ownership options such as bearer shares, or bearer debentures, (the existence of which suspends the normal control and management functions and rights of the directors) and most rely on related privacy regulation for their appeal to clients, rather than legal efficacy. Once established, how is the offshore company operated? Options range from full service administration and operation by the trust company, through to operation entirely by the client and his nominees, with minimum passive administration carried out by Coddan. The client can be as close to or as far away from actual operation of the corporation as he wishes.
Proper maintenance of transaction records is what the trust company must do. A director's decision to have the company enter into a binding contract requires evidencing in the form of a resolution authorising him, (or it, if a corporate nominee director is used) to do so. The contract is then executed. Copies are kept on the file. The client may require notarised, or otherwise verified copies. Sometimes, clients simply abandon corporations, and fail to respond to the trust company's communications. Most good offshore corporate legislation contemplates this, and includes provisions that permit these corporations to be struck off the register without fuss, but at the same time permits their being reinstated if creditors, assets, or transactions, hitherto unknown to the trust company belatedly appear. Liquidation is the proper and best way of ending a corporation's existence without comeback. A client should contemplate termination at the outset, and set aside funds to have this completed.
Companies Limited by Guarantee. This is a form of corporation which has existed for hundreds of years, but has only recently resurfaced because in theory it avoids the U.S. controlled foreign corporation rules. A company limited by guarantee is a company which does not issue shares. Instead, you "pledge" that if the company gets sued that you will then contribute (this is the "guarantee") X dollars to the corporation. The amount of your guarantee relative to all guarantees determines the percentage of your equity, and the return you will receive. For instance, assume that a company limited by guarantee is formed, and Joe guarantees the company for $300 and Fred guarantees the company for $700. If the company makes $20,000 dollars in a give year, Joe will receive $6,000 and Fred will receive $14,000. But, let's say the company gets sued for $15,000. In that case, Joe will be liable to the company for $300 (the full amount of his guarantee) and Fred for $700 - and the creditor is SOL for the other $14,000 (assuming the creditor doesn't sue Joe and Fred in their individual capacities). Now, from an asset protection standpoint, these companies raise some interesting possibilities since the creditor is at least theoretically limited to the amount of the guarantee. So, we'll throw them in our toolbox and await an opportunity to use them.
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U.K. Limited companies
Offshore Company Incorporation
£ 100.00
Corporate Nominee Shareholder Service for Public Records for one year:
A nominee is normally a company created for the purpose of holding shares and other securities on behalf of investors.
