For an individual or a corporate entity establishing a registered offshore company, the RAK offshore company formation process is not that difficult. But it is also not that easy. There are many considerations that need to be taken into account, such as:
- the legal and financial implications
- the applicable rules and regulations
This article will highlight on some of the important points that one must consider before jumping into the offshore company formation process.
Country that Offers Conducive Business Environment:
One of the important things to consider before the RAK offshore company formation process is to select a location that offers a conducive business environment. Several countries throughout the world offer good business opportunities and attractive tax schemes to individual entrepreneurs and companies. However, only a few jurisdictions allow the free flow of capital, particularly to overseas investors.
List of Docs Needed:
When starting the offshore company formation process, there are certain essential documents that need to be produced before you can start doing so. Among the most important documents are the ‘letter of appointment’ and the ‘appointment letter’. These letters serve as the authorization for the offshore company officers to carry out their business operations in the chosen jurisdiction. In addition to the written letters of appointment, you also need to present various account opening forms such as the ‘statement of accounts’ and the ‘share-holder information circular’.
Allocation of Directors:
When carrying out the offshore company formation process, you should remember to send one director for every 100 persons that you have in your company. This is because one director cannot act on behalf of all the other directors. Moreover, one director cannot hold more than one bank account.
Address of Place Where Business Activities are Conducted:
In the offshore company formation process, it is important to note that the home office is the main address where all the work will be carried out. Therefore, this address should always be at a convenient location in your possession. One of the best places to set up an address is at the home of a close friend or relative. However, this depends on your relationship with this person.
The third type of offshore company formation process that is done is by using a Bank Reference. The advantage of using a bank reference is that the name of the company is very much safe since the bank refers to the home office of the company for security reasons.