Forming an Offshore Company
When buying a property in the Caribbean you may decide to put the ownership in the name of an offshore company. This is common practice when buying a vacation/investment property.
There are 2 types of companies you can form; an Exempted Company (International Business Company) or an Ordinary Company. The type of offshore company you set up will depend on your needs and where you plan to conduct your business.
Ordinary Company
Many of our financing clients want to hold their real estate in an offshore corporation. For these clients or those wishing to do business on the islands, an Ordinary Company is the right vehicle. Ordinary Companies are those companies which specifically operate in the country. Ordinary Companies must file an annual return, have an annual general meeting and declare annually that there has been no change to the ownership.
These companies are quick and easy to set up, with an upfront cost of just $2,500. This fee is all-inclusive and includes the government fees for the first year, which are due annually. Every year thereafter you can expect a cost of approximately $1,500/year to maintain the account.
Guidelines for Ordinary Company
- The name must contain“Limited” or “Ltd.”
- US dollars only.
- We can offer an address for the registered company office.
- The company may establish a bank account at a local bank.
- Client information form is required with government ID.
Exempted Company (IBC)
An Exempted Company or IBC, is one which does not conduct it’s operations in that country. These tax-exempt companies are desirable for their minimal disclosure requirements and of course the lack of direct taxation on many of these islands.
Benefits of an Exempted Company (IBC):
- Tax Free: There is no direct taxation in the TCI or Cayman Islands.
- Privacy: Although disclosure is becoming more of a necessity in the banking industry today, there is still some degree of confidentiality in an IBC.
- Ownership: No local ownership/partnership is required, non-resident owners can own 100% of the IBC.
- Currency: A number of these countries operate on the U.S. Dollar (although an IBC can capitalized in any currency).
- Language: English is the official language throughout the British Caribbean countries.
- British Law: The countries we offer these are British Overseas Territories and operates under British Law.
The cost to set up an Exempted Company is $2,500. Again, yearly filings and government renewals will mean there is an annual fee of $1,500 once the company is formed.
Caribbean Offshore Company Inquiries
If you would like to get started with your new company or if you simply have questions you would like answered, please contact us below.