Most onshore countries have provisions within their tax legislation whereby any company, no matter where it is incorporated, which is managed or controlled from within their jurisdiction will be tax resident there and taxable on its worldwide income at local rates. For example, any offshore company which had UK based directors would be tax resident in the UK and subject to UK tax on its worldwide income.
Failure by the directors to declare the liability of the offshore company to UK tax would be an offence with potentially very serious consequences. Most other onshore countries have similar provisions within their tax legislation so it will rarely be advisable for onshore resident clients to act as the directors of an offshore company.
To establish an offshore tax residency for the company we can provide professional third party directors and in most cases it is essential to take this service if tax savings are to be made. Our fees for the provision of directors and/or nominee shareholders would be from £675/US$1,000 per annum.
We can open bank accounts for the company in most places in the world and our fees for attending to the account opening procedures would be from US$500 plus the costs of preparing any additional notarised documentation which a particular bank may require.
Remailing, Fax, Telephone and Office Facilities
As part of the domiciliary services package we provide a registered office address in the jurisdiction of the incorporation of your company in order to meet the local statutory requirement. However, (unless the company is completely dormant) banks, accountants and other service providers may need to write to the company and therefore must be provided with a correspondence address.
Where ICSG is providing directors for the company the correspondence must be addressed to those directors so that they can deal with that correspondence in the appropriate manner. In such cases the provision of office facilities is a compulsory additional service. Where we are not providing directors the client may choose to have mail directed to his own address but this is rarely advisable as the connection between the client and the company will be revealed and it is sometimes not convenient for a client to receive mail issuing out of a recognised offshore financial centre.
For these reasons we offer to provide remailing and other office services out of the jurisdiction of incorporation or out of one of our otheR offices located in Hong Kong, London or elsewhere. When we receive mail we will re-package it into a plain envelope and can arrange for it to be posted, according to your instructions, directly from the place of receipt or via one of our onshore offices to ensure that correspondence is not received at your home address bearing an offshore postmark and the name of your company.
In this way confidentiality which would be lost if mail was received directly can be maintained. Faxes, e-mails and telephone calls can be dealt with according to agreement to further ensure confidentiality. Our fee for the provision of this service is £275/US$400 per annum plus handling charges (£2/US$3 per item plus disbursements).
Dedicationed Telephone Lines
For those companies which are particularly active or wish to have a higher profile we can arrange the immediate allocation of a dedicated telephone line answered with the name of your company. Additional costs apply to this service and details are available upon request.
Using a trust to own the shares of an offshore company can result in very substantial tax and non-tax related advantages which will accrue both on death and during the lifetime of the trust settlor. These advantages may be summarised as follows:-
- SAVING ON INHERITANCE TAX: On death, the inheritance tax which would normally be assessed on the value of the shares would generally be eradicated.
- ASSET PROTECTION: Assets placed into trust are generally beyond the reach of creditors who might arise as a result of financial difficulties, divorce proceedings, litigation etc.
- AVOIDANCE OF PROBATE: A trust provides a means whereby assets can be smoothly passed on to the next generation without the disruption, delays, substantial costs, loss of confidentiality associated with the probate procedure which necessarily follows when assets are bequeathed by will.
- CONTINUITY: Trusts provide a means whereby assets can continue to be administered in accordance with the wishes of the settlor after his death so the weak can be protected from others and the spendthrift can be protected from himself.
- LIFETIME TAX SAVINGS: During lifetime, substantial income and capital gains tax advantages may result from setting up the trust.
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.