Incorporation of an off-shore company makes international financial and investment services available to its owner. It offers the advantage of conducting commercial transactions using both a Russian enterprise and an off-shore company registered in a jurisdiction where it is fully tax-exempt. Information about companies’ incorporators, directors and operation is kept confidential, and there is a possibility of running a business under the General Power of Attorney. Such practice is used for tax planning, as well as for many other purposes. It is fairly common to use an off-shore company for opening corporate debit and credit cards.

    It is a common practice for off-shore companies to branch out into representative offices and subsidiaries in Russia and other countries. As a result, a foreign enterprise operates via its Russian office, reserving the right to use its foreign bank accounts and to take part in various international business transactions.

    Subject to availability of the State Register, it may take 17 to 21 business daysto have a company registered in an off-shore area. When state registration is performed, all companies are required to submit their Articles of Association and Foundation Agreement, as well as information regarding the company’s legal address, its secretary, directors and shareholders. Once registration is complete, the company is assigned a state registration number, and the information pertaining to the company is entered into the State Register of Legal Entities.

    State registration of an off-shore company proceeds as follows:

• State registration itself, which includes preparing the company's constituent documents, holding the constituent assembly and paying state fees and duties.
• Obtaining legal address. It is stipulated by off-shore states' law that all companies are required to have a legal address within the country of registration.
• It is advisable to appoint a resident of the country of registration Secretary of the company in order to keep up correspondence with state authorities.
• Nominee Director's services. For your company to be recognized as a tax resident of the country of registration, it is required by law that a resident of the country of registration be appointed Director of the company. Either an individual or a legal entity can be the company's Director. Nominee Director's services are also necessary to observe confidentiality.
• If you need confidentiality to be observed, we recommend that you use nominee shareholders' services. In this case information about nominee shareholders will be entered into the State Register. The nominee shareholders, in turn, will conclude a Trust Agreement with the company's actual owner (Beneficiary) stipulating that that they shall dispose of the shares as instructed by the Beneficiary and on his/her behalf.
• Opening up a bank account. The company gets an account with a bank in the country of registration to be used for business purposes. The choice of bank and terms and conditions of a Banking Agreement are subject to negotiation.

    Thus, the cost of company registration and first-year support depends on the number of services provided. It is required of all companies to complete state registration and obtain a legal address, whereas all other services are optional and may or may not be required in each particular case.

    Certain jurisdictions, e.g. the Republic of Cyprus, require that all companies registered within the Republic of Cyprus prepare and submit to the register an annual report containing information about shareholders, directors, share capital and any changes thereto, as well as their legal address. Should the company fail to submit the report, it may be struck off the register.

    Furthermore, Cyprian companies are to prepare and submit to tax authorities annual financial statements certified by auditors. This requirement applies regardless of whether or not the company has been conducting business. In case no business has been done by the company, it has to submit blank statements certified by auditors.

    The cost of accounting services, financial audits, submission of tax accounts and financial statements depends on the number of hours it takes to prepare respective accounts. If a company conducts around 50 transactions a year, this service can cost it up to 2000 Euros. Payment for the services is to be effected quarterly as invoiced by the accountant and the auditor.

    You are to pay for administrative and accounting services on an annual basis (for jurisdictions requiring companies to submit annual accounts).

    We also will be happy to assist you in selling an off-shore company that already exists,  or purchasing a company chain in different jurisdictions.

    There are a number of patterns for using off-shore companies, performing settlements and conducting off-shore business, with the most common ones listed below:

• Off-shore company is a bank account holder.

• Off-shore company is a contractor.

• Off-shore Holding company.

• Using off-shore companies in import and export operations.

• Shipholding business in off-shore areas.
• Banking operations in off-shore areas.
• Using off-shore company for asset management.
• International trade involving off-shore companies.
• International off-shore trading and purchasing companies.
• Investment activities performed by off-shore companies.

• Insurance business in off-shore areas.

• Offshore carriers.

• Reinsurance business in off-shore areas.
• Barter deliveries.

• Off-shore employment-securing companies.

• Off-shore leasing companies.

• Off-shore companies used for conducting business in financial and stock markets.

• Off-shore Personalized Service Companies.

• Off-shore financial companies.

• Off-shore clearing center.

    Documents required for registration of an off-shore company::

• Scanned copies of the company owner's international and regular passports;
• Proof of the company owner's address in the form of a utility bill (it may be an electricity, gas, water, phone bill etc.);
• Recommendation of a Bank in which the company owner has got accounts;
• A completed application form.