Frequently Asked Questions

According to the US Inland Revenue Service (IRS), the term offshore refers to jurisdictions which offer financial confidentiality, and are typically characterised by having banking secrecy laws; no tax on profits, revenues, interest, inheritance, capital gains and income. An offshore entity, meanwhile, primarily offers its services to people who are not in the jurisdiction in which the entity is incorporated.

What are the common mistakes people make when incorporating offshore?

Many people lack the required understanding of the laws of offshore jurisdictions, which can have implications for incorporating offshore. A common mistake is to structure a company wrongly. To avoid such an outcome, it is highly advisable to engage the services of a reputable, experienced corporate consulting company who can provide you with the most up-to-date advice on the offshore jurisdiction of your choice, as well as highlight both the advantages, and disadvantages, of such a strategy. A good consultant will also suggest a workaround solution to meet your needs, should this be necessary.

Is the movement of assets and opening of bank accounts offshore illegal?

No. You are free to open an offshore bank account almost anywhere in the world. It is also completely legal to lodge assets, liabilities, reserves etc almost anywhere in the world. But while moving offshore is not illegal, you should remember that withholding information about your offshore investments is considered illegal in some countries. A good corporate consultant can help advise you on these issues.

Isn't offshore incorporation and banking only for the rich?

No. Many people of varying means are now enjoying the benefits of going offshore, and there are no legal reasons why only the rich should benefit. Establishing a secure offshore entity is affordable, and provides excellent savings on tax.

Can I migrate my existing business offshore?

In theory, yes, and some organisations do transfer sections of their business to offshore jurisdictions as separate subsidiaries and profit centres. However, a clear strategy must be devised to maximise the benefits of migrating your existing business offshore. Let us help you to draw up a solution tailored to your company’s exact needs.

Do offshore jurisdictions offer benefits beyond tax?

Yes. Offshore jurisdictions usually offer confidentiality, meaning they are excellent locations to protect your assets and for holding companies. Other advantages would be unrestricted flow of capital and transfer of assets.

What about the offshore industry's future?

The dynamics of tax havens and the offshore industry is changing, and the changes are likely to change the face of the sector for ever.

There are two key drivers of change. Firstly, financial industry experts agree that Asia’s booming economies, strong banking confidentiality laws and pro-business incentives are driving capital flows eastwards, away from the more traditional banking centres such as Switzerland.

The figures tell the story. According to the World Bank, China’s economic growth in 2006 is expected to be 8.3%. Economies elsewhere in southeast Asia are also expanding, albeit at lower rates than China.

Secondly, some tax haven jurisdictions, especially in the Caribbean, are reportedly bowing to pressure from the OECD to exchange confidential information about companies and bank accounts housed there. In contrast, Hong Kong and Singapore, as well as the Marshall Islands, continue to refuse to cooperate with the OECD. As a result, these jurisdictions represent probably the most secure, stable offshore companies available anywhere today.

There are also other macro-economic and geopolitical issues which will influence the evolution of the offshore industry. In our post 9/11 world, security of information has become a highly important, as well as sensitive, issue, boosting the role and importance of genuinely private, secure jurisdictions.

Also, populations are growing, and wealth creation is more important than ever. To provide new infrastructure, governments in most developed, developing and even third-world countries will continue to impose high taxes.

Going forward, industry analysts believe the idea of tax competition between nations will continue. In a report, one analyst said: ‘Countries with a small domestic tax base favour tax competition, while countries with a large tax base prefer tax co-operation.’

Against this background, Healy Consultants is ideally-placed to assist Clients to minimise their global tax exposure, as well as protecting and enhancing their assets offshore.

What is an International Business Corporation (IBC)?

It is a company incorporated in an offshore jurisdiction, whose business and investments are tax-free.

What is the ideal offshore centre for asset protection/estate planning?

This would depend on your precise business needs and whether the type of entity you set up needs to ‘look good’ to your clients and/or suppliers.

In this image-conscious world, tax haven countries still have a stigma attached to them.

However, two of the most respectable offshore companies today are Singapore and Hong Kong. If properly structured, both types of company offer excellent tax breaks, particularly if the company’s profits are generated outside these countries. They also have excellent communications and economic infrastructure. They are two of the most popular offshore solutions for Healy Consultants’ clients.

The Marshall Islands is another popular jurisdiction, with no tax, minimal reporting obligations and a quick, cheap incorporation procedure.

With global security concerns putting increasing pressure on offshore jurisdictions, Healy Consultants is well-placed to advise you on the best long-term offshore solution to meet your needs.

Are my offshore investments/assets safe?

Reports that the once sacrosanct Swiss bank account is now under pressure does not mean that your offshore assets are threatened.

Many financial experts still believe that prudent offshore investments remains safer than onshore investment.

Banks in Singapore and Hong Kong have strict privacy laws and it is little coincidence that many of the world’s leading banks are expanding their operations in these cities to cope with increased demand for private banking services.

How can offshore investments and assets be legally protected?

Properly-structured offshore assets and investments will be protected. Common ways of achieving this would be through Asset Protection Trusts, Limited Liability Companies, IBCs, annuities and various types of insurance.

I have read that certain offshore jurisdictions are now less secure than they used to be. Why is that?

Many offshore jurisdictions are under pressure from the Organisation for Economic Cooperation and Development (OECD) to exchange previously confidential client information. This is due to efforts to step up global security and clamp down on money-laundering.

What are the most secure jurisdictions?

To date, banks in select countries in Asia such as Singapore, Hong Kong, Dubai and Ireland are refusing to exchange client information and are therefore probably considered the most secure.

What makes these jurisdictions more secure?

Their refusal to cooperate with the OECD and other organisations to exchange confidential client information.

How can I be sure that these so-called ‘more secure’ offshore jurisdictions won’t start exchanging information in future?

There are no guarantees that they won’t start exchanging information. However, Healy Consultants believes that Singapore, Hong Kong and Dubai offer a secure long term offshore solution.

I heard that there is an increased flow of capital into Asia. Why is that?

One of the main catalysts is that private banks in Switzerland are allegedly under pressure from the European Union to impose a withholding tax on client funds, leading to a steady transfer of capital to more secure locations in Asia such as Singapore. Healy Consultants recently published an article dealing with this subject (see here).

Can Healy Consultants provide nominee director services?

Yes, Healy Consultants can provide both nominee director AND shareholder services, the fee for which is US$1,600.

In which countries in the world can Healy Consultants provide nominee director services?

Healy Consultants can provide these services in any country in which you wish to incorporate.

Why would I want to appoint Healy Consultants as nominee director or shareholder?

Clients normally do this for confidentiality purposes. In many jurisdictions, a register is held of all directors and shareholders which is available for public viewing.

Is there any risk to me if my company appoints Healy Consultants as nominee director or shareholder?

As a director or shareholder, Healy Consultants does legally control your company. However, in practice this control is not exercised as it is not in Healy Consultants’ interests to breach the trust of its clients by conducting deceitful activities. On the other hand, by becoming a director or shareholder Healy Consultants is exposed to risk should the company conduct unlawful business. Healy Consultants engagement letter stipulates we will neither play an active role in the business nor will we be bank signatories.

Does Healy Consultants have any control over my company’s corporate bank account if it is appointed nominee director or shareholder?

No. Corporate bank account forms state clearly who the appointed signatories are.

Where can I open a corporate bank account for my offshore company?

It is, in theory, possible to open a corporate bank account for an offshore company in practically any country in the world. However, the most popular banking solutions for Healy Consultants' clients are corporate bank accounts in Asia - specifically in Singapore, Hong Kong and Dubai.

How long does it take to open a corporate bank account?

This varies on the jurisdiction. A Singapore corporate bank account can normally be opened within one day. A Hong Kong corporate bank account normally takes approximately two weeks to open.

Which banks are used for corporate bank accounts?

Healy Consultants works with leading international banks in Asia. These include HSBC, Citibank, Standard Chartered and the Development Bank of Singapore (DBS).

What are Healy Consultants fees to open a corporate bank account?

Assistance to open a Singapore corporate bank account is US$1,500. Assistance to open a Hong Kong corporate bank account is US$2,100. You will not need to visit Asia to complete this process, Healy Consultants will prepare all paperwork for you and visit the bank on your behalf.

What are the normal due diligence requirements to open a corporate bank account?

In order to approve your bank account application, banks require the following information: proof of your new business (contracts and invoices and/or website and/or brochures/product photographs). The bank also requires a detailed Business Plan outlining reasons to set up the company, products, suppliers and customers, as well as information on projected financial transactions. Healy Consultants will prepare the Business Plan for you, and this service is included in the account opening fees.

If I appoint Healy Consultants as nominee director or shareholder of my company, does it have any control over the bank account?

No, only designated signatories to the bank account have any access or control over it.

What are the types of corporate financing available to me?

The types of financing available are typically asset-based loans; financing for acquisitions and buyout; private debt financing; export financing; private and public equity; Letters of Credit; raising capital through an Initial Public Offering (IPO).

What are the criteria for obtaining corporate financing?

While criteria may vary from lender to lender, a company must typically have sound credit history, must have been incorporated for a set minimum number of years, and must be in an industry deemed attractive to lenders. Typically, all applications must be supported by a comprehensive Business Plan (including financials). Healy Consultants can assist in the preparation of all necessary documents to ensure a smooth application process.

Who are the main corporate finance lenders?

Healy Consultants only works with the leading international banks and project financiers.

Is corporate financing available to me wherever my company is incorporated?

Healy Consultants can help arrange financing in most countries in the world.

Are there other forms of finance available to my company (e g government grants, loans etc)?

Many countries offer incentives for investors, whether in the form of loans, grants or tax holidays. The range and scope of incentives in this case usually depends on the industry – for example, Singapore is actively encouraging hi-technology value added industries and provides the greatest assistance to foreign companies or individuals wishing to set up a related business in the country.

Is my company eligible for investment incentives?

This will depend upon the industry in which your company operates.

Can Healy Consultants help get my company listed on international Stock Exchanges?

Yes, we can help steer you through the procedures and application process.

What are the benefits of listing on the Stock Exchanges?

Listing on a Stock Exchange is an excellent way to raise financing and boost the image of your company.

How long does it take to get listed on a Stock Exchange?

This depends on the country. In Singapore, the average timeframe for listing is six months.

What are the criteria for listing on a Stock Exchange?

Again, specific listing criteria varies but broadly a business is expected to be viable and profitable, and must show that it needs funds to finance a project or develop a project.

What exactly is a Virtual Office?

According to Wikipedia, a Virtual Office is a location which allows many people doing business to share an office address and, sometimes, business machines. The facility often includes mail support, telephones, fax machines, photocopiers, computers, and answering services.

What are the benefits of a Virtual Office?

A Virtual Office can assist the company incorporation in foreign jurisdictions; it can assist in corporate tax planning; it can be beneficial when opening bank accounts in the same jurisdiction; and it can help your company trade with customers in that local jurisdiction.

Where can I set up my Virtual Office?

Healy Consultants can provide a Virtual Office to support your business in any city in the world. However, the most popular Virtual Office locations for Healy Consultants clients are Singapore, Hong Kong and Dubai. In Singapore, Healy Consultants also offers fully-serviced executive offices in the heart of the city at very reasonable prices and for short term lease.

What are Healy Consultants Virtual Office fees?

This depends on the scope of the service you require. Please Contact Us to discuss your requirements.

Where can I read more about Healy Consultants Virtual Office services?

Please refer to this webpage.

Contact Us

For more information on our services, please email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.

Back to Home page.