Mercatoria Services - Company Incorporation and Trustee Services

By: Mercatoria  09-12-2011
Keywords: Real Estate, tax planning, Intellectual Property

Company Incorporation and Trustee Services

The term “Offshore Company” was initially used to refer to corporations or international business companies (IBC) incorporated in the Caribbean. The increase in offshore jurisdictions, or now what are marketed as international financial centres, means that the expression offshore company now also includes any corporate structure that offers:

  • Low or no taxation;
  • Protection of assets;
  • Enhanced privacy and confidentiality;
  • Low costs; and
  • Minimum bureaucracy.

Companies with offshore benefits can now be formed in onshore jurisdictions such as the United Kingdom. English companies are frequently used in various tax avoidance schemes and in Ireland, and other EU member states, corporate rates of taxation are low. In the United States limited liability companies (LLCs) are readily available as off the shelf companies for immediate purchase and even Canadian vehicles can be advantageous in certain structures.

An offshore company, wherever incorporated, may be used for all legal commercial activities such as trading, investment, holding of real estate, financing, professional or consulting services, patent, royalty and copyright holding, ship management and yacht ownership, and personal, family and corporate tax planning. Such companies can additionally be used as a stand alone vehicle (such as owning a luxury villa or aircraft) or in more complex tax planning and wealth preservation structures involving a combination of companies, trusts, foundations and partnerships established under the laws of many and various legal systems.

We arrange both onshore and offshore company incorporations in all jurisdictions globally.

Trustee Services

A fiduciary structure in the form of a trust arrangement can help preserve a client’s wealth against adverse consequences connected to political unrest, economic downturns, unforeseen creditors, frivolous litigation, and family and/or marital disputes. The trust involves the transfer of assets to a “trustee”, who is required to administer the trust assets for the benefit of specified beneficiaries strictly in accordance with the terms of the trust.

We can therefore offer a bespoke service in the field of offshore trust establishment, handling all:

  1. Trustee and trust related services;
  2. Administration of the trust funds;
  3. Trust accounting and maintenance of asset ledgers;
  4. Reporting; and
  5. Filing requirements.

Typical assets held in a trust include:

  • Shares and stocks in both listed and unlisted companies
  • Investment portfolios
  • Real estate and intellectual property
  • Bank deposits
  • Life assurance policies issued under the name of the Settler (client)

A trust is a flexible solution to clients who seek tax minimisation or elimination on estate taxes arising on the death of a Settler, for clients seeking to consolidate the ownership of their worldwide assets in one location, and for the transferring of wealth to 3rd parties such as family members, friends etc.

Keywords: Intellectual Property, Offshore Company, Real Estate, tax planning, Trustee Services, Wealth Preservation

Other products and services from Mercatoria


Mercatoria Services - Ship and Yacht Registration

The purchase of a yacht requires careful planning in order to achieve VAT and other tax reduction benefits. Yacht registration may be obtained in the Isle of Man and in other reputable offshore financial centres. A Bareboat Charter Register enabling vessels to be demise chartered registered.


Mercatoria Services - Property Holding

Hence, if the real estate is located in a high tax jurisdiction, a sale of the real estate and any increase in value on the sale will be subject to the local law and local high tax rates. The ownership of real estate in an offshore company, trust, foundation or partnership if properly structured can achieve substantial capital gains and inheritance tax savings.


Mercatoria Services - Intellectual Property

Issues surrounding efficient tax planning and the licensing of IP rights should be considered and implemented early on in the life of the business in order to maximise goodwill of the business and guard against infringement from competitors. An effective way to protect and enhance the value of the IP is to register rights where appropriate, in each jurisdiction in which the business intends to conduct commercial activity.


Mercatoria Services - International Insurance Licenses

Companies seeking a Class A or a Class C license, may, with respect to its general insurance business be granted a Sub class 1 license if the company is a captive insurance company, or a Sub class 2 license in all other cases in respect of general insurance business.


Mercatoria Services - Bank Formations

In order to incorporate an IBC to undertake international banking business, the person seeking to incorporate must first make a tentative or preliminary application to the Minister for approval to incorporate the IBC. Class B license which permits the applicant to conduct business ONLY with persons listed at the time of the application. International Banks as IBCs may elect to be exempt from tax or to be subject to tax at a rate of 1%.