Offshore Sector and offshore companies

In real terms an offshore company is a corporation that is owned by a person who is a resident or citizen of a country other than that of the country in which the offshore corporation is incorporated. The Company is "offshore" from his own country, hence the term "offshore company". Persons prefer to form companies in countries which have zero or low tax rates and which also have laws protecting their privacy and confidentiality. Anguilla and Nevis are attractive jurisdictions for forming offshore companies because of their zero tax rates, confidentiality laws and also because companies can be incorporated quickly and at low cost.

Why should I own my property in an offshore Company?

Offshore companies are formed for doing all manner of property transactions. Real estate is particularly suitable for offshore companies. It simplifies ownership and is an excellent form of asset protection because it insulates the owner of the offshore company from any personal liability for example to persons who suffered any harm while occupying the property as tenants.

Also on subsequent sale of the property, there is only need for a simple share transfer rather than a complex closing involving transfer of ownership at the Government Land Registry. Ownership of the land remains in the name of the company, thereby reducing many of the costs on transfer.

It also simplifies the passing of the property to the children because only a simple share transfer needs to be prepared and signed or, alternatively, the shares of the company can be passed by preparing a simple Anguilla or Nevis will or trust.

What about inheritance laws? When I pass away what happens to the property? Will it pass to my wife and children?

There are various tools available to ensure that the property passes on to family members separately from your "on-shore" property. The husband and wife can own the shares of the company jointly. Joint ownership ensures that the property will automatically pass on the death of the husband or wife to the survivor. Also the making of a simple Anguilla or Nevis will or trust ensures the smooth transfer of the shares of the company onto the children or other family members.

Is it possible to have a bank account for the offshore company?

Yes. We will assist you in opening a bank account for the offshore company. The bank account can be opened in Anguilla, St. Maarten, Nevis or another country if preferred.

Should I form an Anguilla or Nevis trust to hold shares of my offshore company, as well as consider using the trust for other property that I own?

A trust is an excellent tool for both estate planning and asset protection. Anguilla and Nevis have excellent trust legislation which provide for special asset protection and confidentiality. Essentiality a trust is a will substitute and can easily provide for the seamless passing of property from one generation to the next thereby avoiding probate. Because of the trust's flexibility it can be used for a variety of purposes.

By: John O. Dyrud
Chairman and Counsel
First Anguilla Trust Company Limited