Offshore companies still benefit from tax savings, confidentiality, asset protection, financing and growing your business into other parts of the world.
Opening an offshore company and an offshore account is becoming much more complicated, given the complexity of FATCA and OECD regulations. Most people think offshore companies have lost their status as safe alternatives to onshore companies, the authorities worldwide are going after tax cheaters and multinationals looking for tax-free jurisdictions. However, we still believe offshore companies can still bring the best out of each jurisdiction, mainly in the BVI and the Cayman Islands.
The BVI and the Cayman Islands
Both the BVI and the Cayman Islands offer a relatively low set up cost for an offshore company, although the set-up cost for Cayman Islands companies tends to be a bit expensive than company formation in the BVI.
Both jurisdictions provide the offer of advantages/ services for offshore companies, of which can be found below :
No corporate tax levies on companies
Fast and efficient registration system that is friendly to foreign investors
Zero inheritance and gift taxes on individuals
No capital controls
Reciprocal agreements of avoidance of double taxation with more than a dozen countries and territories
A solid legal framework
Confidentiality and Secrecy
The real difference between the BVI and the Cayman Islands
The difference between these jurisdictions really goes down to the use of offshore companies, especially in the sense of secrecy and holding company structure. People tend to incorporate firms in BVI when they are searching for the best place to keep their shareholders and directors secret. BVI has the most powerful law when it comes to protecting confidentiality; it has legislation called The BVI International Business Companies Ordinance 1984 (as amended) contains extended privileges and strict confidentiality requirements for the companies, which reinforces the law that BVI companies are kept in a secretive position. Cayman Islands companies, on the other hand, benefit from a much more structured and mature Common Law system, with the Companies Law (2018) being the most enforceable and recognizable amongst the offshore jurisdictions in the Caribbean. The Cayman Islands has attracted a large number of funds, banks, wealthy individuals setting up holding companies in control of major financial institutions in the world. They are confident that it provides the well-known company law and structures for companies to domicile there. It also ranks as one of the most-recognized jurisdictions for financial regulations. With a financial license issued by the Government of the Cayman Islands, you are able to explore financial opportunities across the world, especially major exchanges in the world allow companies to domicile in the British Overseas Territory for public share listing.
the regulatory framework between the two British Overseas Territories is also different. Both countries require investment funds to be audited, and the Cayman Islands require companies engaged in funds to be audited on a local level, meaning local audit requirements will need to be followed. BVI, by contrast, does not require companies’ accounts to be audited locally, therefore no local audit requirements need to be complied with.
In terms of the custodian, the government of the BVI stipulates that custodian be required but firms might ask for an exemption, whereas for Cayman Islands companies, no custodial requirements should be required.
Pre-approved functionalities of investment roles, such as managers, administrators, custodians, auditors, etc., licenses issued by China, Hong Kong, Brazil, the US, and the UK, are recognized by the BVI, and thus no further approved functionalities needed. On the other hand, the government of Cayman Island does not grant pre-approved functionalities by other countries. As a result, this might add extra time, legal fees and money for companies to apply for a new regulatory license.
If you are a small business owner starting off with a tight budget and company privacy is your major concern, then we recommend that you incorporate a company in the BVI. If you are a big business owner seeking to venture out and invest in the fund sector or taking the proposed company as a holding structure in the future, then we recommend that you incorporate a company in the Cayman Islands. Both countries are known for tax savings, confidentiality, asset protection, financing and growing your business into other parts of the world, but the selection of which country to incorporate is really down to your needs and circumstances.
What should you consider before forming a company in these two countries?
Perhaps most people are just thinking of an offshore company somewhere in the world but have never taken any actions. Perhaps many are so hesitant to think if an offshore company is worth having a go. As mentioned before, firstly, the cost could be a huge factor for business owners to incorporate a company in. Secondly, depending on what type of business you are in, certain business activities are regulated and authorized by the authorities, and you will need to apply for a license before engaging in the activity. Lastly, if you believe your business would grow and expand into countries you are not currently operating in, then you should take the first big step by forming an offshore company exploring options for you to expand.
Get in touch with us and see how we can help your business. Here at Sinda Corporation, we thrive with you together.
Our Online Offshore company formation is available in more than 20 countries. Please click here to start your online incorporation process with us. We promise that we provide the highest qualify of services at competitive rates with excellent lifetime customer support, meaning you will receive advice/support from us forever. We will answer any of your queries before and after-sales. We will guide you step-by-step to set up your business and advise on your day-to-day operational queries. We believe in people building businesses, so not only do we offer corporate services, but also individual needs on a personal level. For example, if you form a company with us and would need a private bank account or any immigration advice, then we certainly help you with your personal requirements as well. This ensures that all company owners/directors/shareholders are being looked after by us. Together, we prosper in business.
Our Company Incorporation Services include the following :
1.Company Certificate of Incorporation
2.Memorandum and Articles of Association
3. Directors and Secretary’s Booklets Official Share Certificates
4. Schedule of Directors, Members & Secretary Document
5.Company Seal Company Register Hard Book
6.First Annual Return Included in Price
7. First Meeting Minutes of the Company
8.All Government Fee
9.Free Company name Checking
10.Complementary business advice throughout
12.Certification of Documents as an Authorised Agent
13. Business registered address
14. Business Service Address
Our Full Bank Account Opening Services include the following :
2.Application fee payable to Bank
3.Preparation of legal and regulatory documents for bank account opening
5.Lifetime Customer Support 24/7
6.Certified documents as an authorised agent
7.Complimentary advice on account review ,if any
8.Complimentary document templates for account review, if any
9.Negotiating with the bank on behalf of clients for business loans, fee or any other services
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Please refer to our website for details of our local offices.