In 2018, more businesses than ever are either moving their operations overseas or are starting out as an offshore company. Technology advancements and rapid globalization have made this option easier to manage and very attractive to many budding entrepreneurs. If you are looking to set up an offshore company, you still need to focus on the substance of your business just as much as you would if you were running it from an office in your home locale. While there are many benefits to having an offshore company (explained in detail below), there are several factors that are different from opening it up onshore.
To help you with the set-up so that you can get down to working hard ASAP, here are four secrets that spell success when looking to start an offshore company.
1. Understand why you are setting up an offshore company.
Hopefully, you have considered this before you have committed to offshore company formation, but just in case, you need to ensure that you thoroughly understand why you are doing this.
There are many benefits to be had from forming this type of company.
For example (depending on where you reside):
- Local taxes may be much cheaper in other countries than onshore
- Opening a bank account and paying any banking expenses may be more reasonable
- It may be easier to obtain customers or clients for your business
- Hiring proficient workers may be cheaper.
Additionally, lower capital requirements, lower set-up and maintenance costs, asset protection, and reduced administration are all benefits that many offshore companies enjoy.
2. Write a business plan just as you would for an onshore company.
Regardless of whether you are looking to start an onshore or an offshore company, you need to spend a significant amount of time and energy composing a thorough business plan. However, some extra considerations need to be accounted for when it comes to setting up an offshore business. First of all, you need to pick a location for your offshore company to be registered. This choice will then lead you to decide on the most suitable business structure and legal entity type. Depending on the kind of business you are looking to set up, you will require a different plan and a specific business structure and legal entity type. However, all the benefits of opening an offshore company (see #1) can be available to you as long as you plan correctly and pick the appropriate jurisdiction and business structure.
3. Partner with reliable and experienced people.
There is a minimal likelihood that you are going to be able to set up your offshore company entirely on your own. Instead, you want to partner and work with reliable people and firms in the chosen country who have top-quality experience in setting up businesses. For example, if you are looking to get an Indian business license, you want to find a company that offers the best solutions for company set-up in India. By working with a team that already knows the ropes regarding starting a new business/company formation in India, you will find that setting up your offshore company will be far more efficient and smooth-sailing.
4. Focus more on your team.
When you have the bulk of your team (or even the entire staff) working remotely, it can be challenging to create the same kind of depth of camaraderie and trust that arises when you all sit in the same office every day. For this reason, it is essential that you put extra effort and attention into the remote members of your team. While you may not realize it, they can quickly become disconnected from the rest of the team and feel detached from the company goals.
Make sure that you are checking in with all employees at least once a week — even if it is just to compliment them on one thing they have been doing. Make sure you repeat how much you appreciate their work and how it ties into the broader purposes of the company. Never underestimate the power of virtual, long-distance hugs and chats. Have you set up an offshore company? Are you in the planning phases? What are you doing to ensure the launch goes smoothly? Let us know in the comments below, and we can share tips and tricks!
Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centers offering furnished and ready-to-move offices in Dubai.