5 Essential Things To Do Before Opening an Offshore Company

Opening an offshore company can have many benefits, but it takes careful planning to get it right. Registering a business offshore does not guarantee success. Before you can take the first step in creating your company, you must decide what you wish to achieve. The worst thing you can do is start out without any guarantee that you will generate revenue, as you will want to ensure that you’re making more money than you’re investing.

For the best chance of success, there are five essential things you will need to do before opening your offshore company.

1. Pick the right destination
Thoroughly research the different options that are available to you to ensure that you pick the best offshore destination for your needs. For example, some businesses will flourish by being registered in Panama, whereas others will do better in the Seychelles. Explore what each location offers, from international credit cards and bank accounts to virtual office services, so that you can choose the right components for your business.

2. Make sure you have all the necessary requirements
When registering an offshore company, there are several requirements you’ll need to meet in order to create it in your chosen location. As well as the typical paperwork, you’ll also need to have the following prepared: your company’s address in your chosen location; the name or names of shareholders; the name of at least one director; an appointed company secretary; declaration of the share capital; and a memorandum.

3) Learn the local language
Once you’ve decided where you’re going to open your company (e.g., Gibraltar, Malta, Cyprus, Anguilla, or Belize), it’s worth learning the local language if it’s not English. This needn’t cost you much, as you can easily get reasonably-priced tutorage from a teacher or foreign student in your local area, buy a teach yourself book, or find an online course. By being able to speak the language, you’ll be able to converse sufficiently with local businesses and potential clients.

4) Know your business inside-out
Make sure you fully understand how your business works. That means knowing what your market looks like and how to detect changes in it, how your cash flow works, and what (if any) implications going offshore will have for you. If you’re not sure what’s best for your business, opening your company offshore may not be a helpful solution.

5) Don’t be afraid to get help
Getting it right is key to a successful business, and opening an offshore business can seem a little daunting to say the least. So, if you need a bit of extra help and advice on how you should go about it, there are plenty of experts in offshore businesses who can offer advice and assistance. They will help you examine all your options to determine what’s best for your business, and help you build the ideal structure for your needs.

Offshore companies offer tax benefits, legal protection and privacy. They are also often much easier to form than onshore companies. However, use these five key steps to ensure you don’t rush in and overlook vital considerations, and don’t be afraid to seek expert advice if you need it.

Image of globe by Beedle Um Bum