The possibilities of expanding beyond domestic borders come with promises of increased revenue generation, interacting with diverse demography and establishing your business presence in international markets. Though, you would also need a good marketing plan to go along with all that. An offshore company formation can sound really enticing for a growing business. While marketing and sales plans can be drafted by you or your employees, you will also need a guide to understand the legal formalities to set up a branch in a country that is not your native one. The best way to go about that would be to approach a firm that offers corporate legal services. This would make your tasks about a branch setup much easier.
There are countries where company registration is much easier compared to others. If your company is relatively new and you can’t afford to spend a long time getting stuck in endless paper trails, it would be good to choose a country where registration formalities are relatively done faster. No matter where you decide to set up a branch or a company, it is always better to consult with a legal form. They will be much better equipped to understand the guidelines and can get your job done much faster.
In most countries, you can do an offshore company registration under three categories, a representative office, a Limited Liability Company, a Joint Stock Company or a branch. In any case, you’ll first need to get registered in the commerce and trade registry. Here you’ll need to assess what category your business will fall into. Based on the category, the rules and regulations will tend to vary, so your choice needs to be well thought out. Corporate tax is chargeable on the company registration that includes the limited liability company and joint-stock company types. This kind of taxation is not applicable to branch and representative office registrations. A minimum paid-up share capital is a mandate for the limited liability company and company types.
You can go online now and hire BPI Finance to assist you in smooth Company registration.
The next important aspect for a successful registration is incorporation documents and they need to be duly completed. Along with information about the board of directors, a Memorandum of Association or a Decision on Foundation will be required. In the stage where the articles of association are decided, the internal working of the company is defined and how well it is aligned with the commerce and trade registry rules.
In the case of equity capital, a portion of the equity capital can be paid initially. Over the period of one year from the date of registration, the rest of the equity capital can be paid gradually. A temporary bank account can be set up to help you pay the equity much more easily. Here you will have to furnish details of the founders and the board of directors to the bank. Along with that, a projection of fund flow and business plan might be asked for. If you’re hiring a firm to get the registration done, you will also be helped in this stage, even if you are a foreigner.
About Author: My name is Jacob, working with Business Blog Hub since 2016. I graduated from Cal Poly in San Luis Obispo, where I studied Business Management. Some of my favourite activities include watching baseball, playing music and eating bagels.
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