Offshore Companies: What you Need to Know

An offshore company is a company that is registered in a country outside of your home country. If you are working in Vanuatu, and are considering setting up a company in another country, your company may be considered an offshore corporation. Here are some things to consider if you will be running an offshore company from Vanuatu.

  1. The political climate of the country: If you are considering running offshore companies in Vanuatu from another country, it is crucial to familiarize yourself with the political climate of the country. Politics has a massive impact on business, so it is important to be aware of certain factors such as competition regulation, trade control, tariffs, and more.
  2. Corporation tax: Look into what the corporation tax is in the other country. Some countries offer low corporation tax, and are appealing to businesses to relocate to as a result – however, some are ridiculously high. For example, corporation tax in Puerto Rico is 37.5%, whereas corporation tax in Ireland is 12.5%. Make sure you do your research beforehand!
  3. Costs: When setting up a company in another country, ensure you look into the fees that country requires. Some countries require much more fees (such as service tax, registration fees, government fees) than others, so take a look into whether the fees are very high in the country of your choice and re-assess if this is viable for your business.
  4. Privacy: If you are choosing to do your business elsewhere for reasons of privacy, ensure that the country will be able to provide this for you. For example, if you would like to protect your identity, ensure that this is possible in your new country before moving there – as you may have to publicly share your financial records.

If you are still looking into starting an offshore company, this may look daunting to you. Don’t worry, however, as BAP International can help with all consulting before you set up your company! The process to organize this is quick and simple, and often can be completed within 48 hours after you submit your information and documentation. Their knowledge of regulations, legislations, and methods are unmatched in Vanuatu, and they can provide valuable guidance about licensing, costs, taxation, politics, and more things necessary to set up your business abroad. Visit their website to find out more about how to set up your offshore company today!