Offshore Company Formation

The opportunity to set up an offshore company continues to attract entrepreneurs from around the globe. These companies offer access to favorable tax conditions, provide asset protection, and increase the confidentiality of business operations. Offshore jurisdictions create favorable environments for international business, offer reduced tax rates, and shield companies’ assets from external risks. If this sounds appealing to you, then read on to learn about the process of company formation and how we can help you.

To define an offshore company, they are legal entities registered outside of your country of residency, often with favorable tax regimes, that conduct their activities outside of the country of incorporation. The main reasons for creating a company offshore include tax optimization, asset security, and privacy enhancement, and they offer numerous benefits.

In 2025, setting up a company offshore remains legal, and it is seen as a strategic step for those looking to manage their international assets and grow as a service provider. There is likely some structure that you can set up that suits your needs, whatever they may be, and we can help you during the entire process. 

However, the global de-offshorization process poses new challenges. Many countries, together with international organizations such as the EU and the OECD, are tightening control over jurisdictions offering favorable tax conditions. Blacklists of non-cooperative countries are compiled, and transparency requirements are becoming increasingly stringent. This should be taken into account when choosing an offshore destination, and is a reason why professional support, such as from our experts, is essential.

Key benefits of incorporating an offshore company

Here are key reasons to operate an offshore business or other structure overseas:

Tax efficiency

One of the main reasons to set up a company offshore is the opportunity to optimize taxes. Many offshore jurisdictions offer zero or extremely low tax rates on income earned outside the country of company registration. For example, popular offshore jurisdictions such as the Marshall Islands or Nevis exempt companies from corporate taxes, which makes them attractive for entrepreneurs operating in international markets.

Asset protection

Incorporating a company offshore can be an effective way of protecting your assets from third-party claims. These structures are often used to hold and manage investments, real estate, and other valuable assets. They minimize risks related to lawsuits or legal claims.

Privacy and confidentiality

In most offshore jurisdictions, business owners enjoy a relatively high level of confidentiality. Company beneficiary, director, and shareholder registers are either non-existent or accessible only upon request by legal authorities. This level of privacy is appealing to those who want to keep their financial activities protected.

Popular offshore jurisdictions for 2025

More than 100 countries offer some sort of benefits to foreigners registering companies in their jurisdictions. Below is a table with the most popular tax-free offshore jurisdictions. We also mention a couple of low-tax onshore jurisdictions that offer attractive company registration terms to foreigners. In addition, we briefly outline the advantages of each jurisdiction.

Jurisdiction	Tax Benefits	Company Types	Other Advantages	Conditions
Seychelles	International business companies (IBC) are exempted from corporate taxes, VAT, dividend taxes, and capital gains tax.	International Business Companies (IBC) as well as LP, LLP and GSL	High confidentiality, no reporting or audit requirements if business operates outside Seychelles.	Minimal administrative requirements; company cannot operate within Seychelles.
Belize	Offshore entities are exempted from all local taxes, including corporate tax, VAT, and capital gains tax if they do not operate in Belize.	International Business Companies (IBC) and LLC	Simple registration process, high confidentiality level, no audit or financial reporting requirements.	Company has to operate outside of Belize.
Nevis	Companies are exempted from all taxes, including corporate tax, dividend tax, and capital gains tax if no local business is conducted.	International Business Companies (IBC), LLC, Foundations, and Trusts	Strong asset protection, high confidentiality level, no auditing or reporting requirements.	No taxes as long as no local business is conducted.
British Virgin Islands (BVI)	Corporate taxes, VAT, and capital gains taxes are waived.	International Business Companies (IBC)	High level of confidentiality, good international reputation, no auditing or reporting requirements.	Business has to operate outside of the BVI.
Marshall Islands	If a company is offshore, it is exempted from all local taxes, including corporate tax and VAT.	International Business Companies (IBC)	Soft reporting requirements, confidentiality, strong asset protection, nominee services.	No business activity within the Marshall Islands.
Gibraltar	Foreign companies can pay a low corporate tax (15%) if income is earned outside of the jurisdiction. Gibraltar is known for its favorable tax environment.	Private Limited Companies	Full access to European markets, stable legal system, good reputation, advanced legislation.	Company has to operate outside of Gibraltar.
United Kingdom	While not an offshore zone, the UK offers certain tax benefits for foreigners, especially through holding companies and capital gains/dividend schemes.	Private Limited Companies (Ltd), Holding Companies, Partnerships and LLP.	Access to European and international markets, developed infrastructure.	Tax benefits available for holding companies or service export firms.
Delaware (USA)	Companies not operating within the state are exempted from corporate taxes on income earned outside Delaware.	Limited Liability Companies (LLC)	Simple registration process, high confidentiality of ownership information.	Company has to operate outside of Delaware.
Wyoming (USA)	Wyoming offers zero corporate tax, dividend tax, and capital gains tax for companies operating outside of the state.	Limited Liability Companies (LLC)	High confidentiality level, no reporting requirements.	Business has to operate outside of Wyoming.
Serbia	Serbia is not an offshore zone but it offers a low corporate tax (15%) and special incentives for foreign investors.	Private Limited Companies (d.o.o.), Holding Companies	Developing economy, access to European markets through free trade agreements.	Incentives are available for companies investing in Serbia and doing business locally.
Romania	Romania offers a low corporate tax for small businesses (1-3% of the turnover) and special incentives for IT companies and holding companies.	Private Limited Companies (SRL), Holding Companies	Low business costs, access to EU markets.	Incentives available to companies conducting active business within the country.
Panama	Companies are exempted from corporate taxes on income earned outside of Panama.	International Business Companies (IBC), S.A., SRL, Partnership, and Foundation	High level of confidentiality, no auditing or reporting requirements.	Company has to operate outside of Panama.
UAE	Companies in Free Economic Zones are exempt from corporate taxes for up to 50 years. No VAT on certain services.	Free Zone Companies, Offshore Companies	Full access to international markets, modern infrastructure.	Benefits depend on the specific Free Zone and the type of company activity.

We will gladly help you choose the best offshore jurisdictions where you could register a company. Feel free to contact our experts, who will support you at every stage of company formation – from collecting the application documents to opening a bank account. We will also explain how you could make full use of all tax benefits available in offshore jurisdictions. 

How to choose the best offshore jurisdiction

When choosing a jurisdiction for offshore company incorporation, you should consider several key factors:

• Tax regime and tax filing requirements.
• Level of confidentiality and access to information about company beneficiaries.
• Cost of company registration and annual maintenance.
• Degree of international recognition and availability of double taxation treaties.

We will be delighted to supply all the information that you need to make the optimal choice.

4 Steps to setting up a company offshore

The incorporation process may seem a rather complicated task, but with the right preparation and professional assistance, it can be done relatively quickly. The main steps include the following:

1. Choosing the jurisdiction: Decide on the goals of your company and choose a country with suitable conditions.
2. Preparing documents: Collect the necessary documents: passport copies, proof of address, and company corporate documents.
3. Applying for company registration: Submit the documents to the relevant authorities in the chosen offshore jurisdiction with the help of a local registered agent.
4. Opening a bank account: Once the company registration is complete, in most cases, you will have to establish a corporate account. Please note that we specialize in helping clients open foreign accounts. 

Discuss the details with an expert

Check the list of required documents, and get the details of the process, terms, and costs.

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Documents required for company registration 

You will need the following documents:

• Certified copies of personal documents (passport, driver’s license) – mandatory for all applicants.
• Proof of residential address – a certified document that is no older than 3 months (usually utility bills or bank statements).
• Professional reference letter – often required to confirm the professional reputation of the company founders.
• Resume – may be requested to verify the company founders’ qualifications.
• Letter of Recommendation from a bank – this document would confirm that you are a reliable client of a bank and your financial situation is stable.  
• Proof of origin of capital (a bank statement) – to confirm that the funds used for starting the company are legitimate and not related to illegal activities.
• Due diligence and order forms – documents required for standard KYC checks.

Different types of offshore entities

There are several types of offshore structures, and each of them suits different purposes and has its own set of benefits:

• LLC (Limited Liability Company) – provides flexibility in management and limited liability.
• IBC (International Business Company) – common in long-standing offshore jurisdictions; provides full tax exemption.
• Trusts – used for protecting assets and estate planning.

Your choice of company structure will depend on the goals of your business venture. For example, an LLC offers flexible management, while trusts are ideal for asset security and inheritance planning.

Legal and compliance considerations

It is important to consider international standards and requirements such as anti-money laundering (AML) regulations and tax compliance (FATCA and CRS). Failure to comply with these regulations can lead to sanctions and frozen accounts. Our experts will be happy to help you sort out all the legal issues so you remain in good standing.

Reporting and transparency requirements

Some offshore jurisdictions, such as Belize, Seychelles, and the BVI, now require financial reporting and disclosure of information about company beneficiaries. These requirements vary depending on the country where the company is incorporated.

Opening offshore bank accounts

Having a corporate account is essential for the full functioning of your company (unless yours is a holding company). It allows you to make international financial transactions, manage assets, receive payments from clients, and settle payments with partners. Offshore accounts also help diversify assets and protect them against various risks such as political instability or currency restrictions in the business owner’s home country.

Key advantages of offshore bank accounts:

• Access to international currencies: This is especially important for companies operating in global markets and making deals in multiple currencies.
• Asset protection: Banks in offshore jurisdictions often offer high levels of protection for your personal data and assets.
• Freedom of capital movement: Offshore accounts offer more flexible conditions for moving funds around the world.

Steps for opening offshore bank accounts

Opening an account overseas for offshore entities can be a challenging task because of tougher transparency and anti-money laundering requirements. However, if you apply for our professional assistance, your chances for success can significantly improve. 

A corporate account with a bank or an EMI is one of the key factors determining the overall success of your company. Our experts will help you find a financial institution that will simultaneously meet your requirements and be prepared to take you on board. We will provide you with the list of requirements once we define which bank we are going to apply to. Timeframes differ as well, from 2 weeks with some EMIs to several months with some banks.

1. Choose a bank: Before incorporating your company, it’s important to choose a bank that fits your personal and business needs and that has experience working with non-residents. Some offshore jurisdictions have banks geared toward international clients with remote account opening opportunities.
2. Prepare the documents: You will need the following documents for opening an account:
   • Incorporation documents of the company (Certificate of Incorporation, Articles of Association, etc.).
   • Copies of passports and proof of address for company beneficiaries, directors, and shareholders.
   • Documents confirming the business activities of the company, such as contracts with partners or a business plan if it’s a new company.
   • Financial information, including details of the sources of funds and information about clients and markets.
3. Comply with KYC and AML requirements: The bank will ask you to go through a ‘Know Your Customer’ (KYC) process and confirm compliance with AML regulations. These processes include verifying all company owners and sources of funding. You may have to provide some additional details at the bank’s request.
4. Choose the type of account: Banks may offer various types of accounts, such as operational accounts for conducting day-to-day business or investment accounts for managing assets. You may also want a merchant account for working with international payment systems, which is particularly important for companies involved in e-commerce.
5. Submit your application: After collecting all the documents and completing the preliminary review, submit your application for services to the bank. Depending on the jurisdiction and the chosen bank, the process can take anywhere from a few days to several weeks or even months.

Challenges and difficulties associated with opening a bank account for an offshore company

You have to be aware that you may face significant transparency and reporting requirements if you have a company registered offshore. Many banks prefer to work with companies incorporated in low-risk, reputable jurisdictions and they may not set-up an account if the company’s jurisdiction is on the FATF or EU blacklist. However, there are alternatives: you can have an account with specialized payment systems or choose a bank in a more favorable jurisdiction.

Please also keep in mind that some banks may require the physical presence of the company’s owners to complete the process. At the same time, others allow you to open accounts remotely.

Common misconceptions about offshore companies

While often associated with illegal activity, this is one of the biggest myths today. In reality, offshore incorporation is completely legal when it is done in accordance with international standards and regulations. These companies enable businesses to optimize their tax strategies, protect assets, and maintain privacy while adhering to the law.

Conclusion

Offshore company formation in 2025 offers numerous benefits, such as tax optimization, asset protection, and confidentiality. By following clear steps and taking into account international regulations, you can create an effective structure for your international business. You will be well-advised to seek professional consultation if establishing a company offshore is on your mind, to get support at every step.

Frequently Asked Questions