Frequently Asked Questions

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1Is it legal to set up an offshore company?
Legally speaking, an offshore company is nothing else than a company. Is it legal to set up a company? Absolutely. It is what you use the company for that determines its legal status. Presently, millions of offshore companies are being used across the globe in total legality. Be it to own property, act as a holding vehicle, conduct business, own trademarks , trade...all these activities are done within a legal and tax framework that is known and established by authorities. When does it become a problem ? Upon using a company with criminal intentions such as but not limited to : evading taxes, launder money, trading without proper license for an activity that requires one, bribery, human trafficking etc And this is precisely what has brought bad publicity to the industry over recent years. Some isolated cases, representing less than 1%, have impacted anyone owning or having the intention to own an offshore company. We conduct strict due diligence and Know Your Client processes and are sometimes forced to refuse clients that we know, or have strong suspicions, conduct criminal activities.
2What is an offshore company?
Offshore or non-resident companies are described as companies that conduct an insubstantial or zero volume of business within their jurisdiction of incorporation. More specifically, offshore companies have three characteristics: Firstly, they should be registered as an entity within the jurisdiction of incorporation. Secondly, the "incorporators" should be domiciled outside of the jurisdiction of incorporation. Finally, the company should transact exclusively outside of the jurisdiction of incorporation. However, most associate the term 'offshore company' as a means of increasing tax efficiency.
3Why should I use VAULTALITY for company incorporation?
1. Our professionals have more than 20 years of experience in offshore consultancy. During this time we have been able to develop a network of offshore service providers that remains unparalleled. 2. Our incorporation partners are members of many international recognized organisations. We provide tailor-made services to our clients, aligned with the latest jurisdictions’ laws. 3. We are one of the most competitive offshore providers.
4Why are your fees lower than those of your competitors?
We have our own partner offices in the 18 jurisdictions we are active in. There are no hidden costs, and we eliminate all the intermediaries you often have to deal with.
5What is a UK Agency Company?
The agency structure is a simple set-up where a UK company acts as administrator or agent for a non-UK principal which was registered in another jurisdiction. The UK company will draw on its well respected image and business credibility to trade with clients on behalf of the Principal which in turn retains all the benefits of its own jurisdiction. The Principal and the Agent sign an agency agreement specifying the exact terms of their agreement including the set out of proper commercial fee for the Agent. All business is then conducted in the name of the UK company, but on behalf of the non-UK company. Clients enter into a contract with the UK company, are invoiced by them and pay the invoices into the bank account of the UK company. Most of the income is then remitted to the non-UK company according to the specificities of the agreement. It should be noted that if the UK company starts trading within the UK or with any UK businesses, this income would be subject to UK taxation.
6Do I have to pay taxes on profit or interest earned by my company?
Most of the jurisdictions we work with do not impose taxes on profits made or interest earned by the company. Some, like Hong Kong, only tax profits made within the jurisdiction, whereas Cyprus charges a 10% flat tax. While a company may not be subject to tax reporting to its local authorities, you should consult with your own tax, legal or accounting advisor to determine whether you or the company are subject to tax in any other jurisdiction including the jurisdiction in which you are a tax resident.

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