Most offshore jurisdictions have ensured that their company law provides attractive features such as fast and easy incorporation, minimum information on public file, minimum or no obligation to file any returns or reports, minimal number of directors, availability of corporate directors, ability to hold directors’ meetings anywhere in the world or by electronic means, lack of requirement to file audited records, flexibility in regards the amount of authorised capital and minimum or no capitalisation requirements, etc. It is for you to decide if any of those special features (which will usually be clearly emphasised by the Registered Agent in any particular offshore jurisdiction) are of any particular interest for you.
All entities that are known as “offshore companies” in the narrow tax benefit sense will usually have the same distinct feature – no or minimal tax. Such company is essentially relieved of any obligation to pay corporation tax or income tax to the country where it is registered. Hence, there is also no requirement to prepare and file the financial declarations that are usually associated with income tax reporting. At the same time there are particular types of entities, subject to what is called ‘designer taxation’, which pay minimum rate of tax. An example of that is a Seychelles Special License Company, that pays between 1.5% and 5% of tax, and, consequently, is also supposed to file tax returns.