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While the administration of offshore companies and trusts is no different to that of their
onshore counterparts the number of questions posed by clients, nonetheless, seems to be
unending. Below are some of the more frequently asked questions along with brief answers.
Why should I consider going offshore?
Establishing an offshore company or trust is not necessarily the right course of action for
everybody. Specific legal and tax advice should be sought before establishing an offshore
entity; for some, however, the consequent inheritance, income and capital gains tax and asset
protection advantages are compelling.
What jurisdiction should I choose?
This will depend on a number of factors discussed in
Choosing a Jurisdiction. Further advice
can be obtained from C(OS)L.
How confidential are the arrangements?
In the case of a Trust there is no requirement to register details of settlor's and
beneficiaries with any regulatory body. In the case of companies through the use of
third party directors and nominee shareholders it is possible to ensure that no connection
exists between the beneficial owner and the company. Confidentiality will only be breached
in the case of a properly authorised criminal investigation or fraud.
Can I provide my own Directors?
In certain jurisdictions it is mandatory for the directors to be resident while others have
no such requirement. In the latter jurisdictions, such as the Bahamas and British Virgin
Islands, clients can provide their own company directors although such an appointment would be
a matter of public record.
How can I be sure that my money/assets are safe?
Through careful selection of the jurisdiction of incorporation and by only using reputable
banks and other professionals every effort is made to safeguard the assets of a company
or trust.
Can I control the Company bank account?
Where clients provide their own officers to a company then it will be their
responsibility to obtain banking facilities. Where Directors are provided C(OS)L all
bank signatories and control of the account will lie with them.
How long will it take to get a bank account?
Subject to C(OS)L and the banks having all the necessary
Know Your Client documentation
bank accounts can be obtained within two to three weeks. This timescale, however, is a
best estimate as clarification of matters may be required by banks which can delay the
opening process.
Is it possible to have Debit/Credit cards on the account?
Most major banks offer such facilities and the decision to issue cards will be at
the discretion of the directors of the company.
What is covered by the annual costs?
Annual costs cover the provision of directors (trustee services in the case of a
settlement) and nominee shareholders (where applicable), provision of a company secretary
(where required), registered office/agent, government fees and charges and the filing
of all statutory forms. Annual costs are billed two months in advance of the anniversary
date of the incorporation of the company or settlement of the trust.
What information is in the public domain?
This will vary from jurisdiction to jurisdiction. Through the use of third party
directors and nominee shareholders it is possible to ensure that no nexus exists between
the company and the beneficial owner. As regards Trusts no information relating to the
settlor or beneficiary is publicly held.
Does the Company/Trust have to file annual accounts?
Again this varies from jurisdiction to jurisdiction. On the whole most jurisdictions
do not demand that accounts be prepared while others do but have no requirement that they
be filed at the Company Registry. Where necessary C(OS)L are able to provide accounting
services to client companies and trusts.
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