Offshore Limited Company

An offshore limited company is simply an offshore company with limited liability. Increasingly, offshore laws provide incorporator with flexible offshore structures and companies that make it possible to transact and do business as desired.

Though available in very few offshore jurisdictions, offshore companies with unlimited liability can be incorporated, but this would be one of the instances where a comprehensive company law is designed and encompasses a range of forms that companies can take as domestic (local) or offshore (international business) companies. Offshore limited companies are the most common type of offshore companies that can be created and many jurisdictions stipulate in their laws that offshore companies can only be offshore limited companies.

In addition to company incorporation, our company has introduced clients to other alternatives like acquiring a second citizenship. Second citizenship is also referred to as dual citizenship and can be obtained by birth, residency or investment. We are concerned with the latter (investment). We introduce clients to St. Kitts citizenship by investment whereby applicants apply for citizenship by making an investment in real estate or the economy of a country. This is known as economic citizenship or citizenship by investment and is an ideal means of estate planning and acquiring wealth.

There are many reasons for and advantages to registering and setting up an offshore company as an offshore limited. For one, the liability of the members of the offshore limited is limited to the share capital invested by each member into the offshore company, restricting loss to only that investment and protecting personal investments from being implicated in any losses that the company may incur or may have incurred. The same benefit is presented to the company’s officers who may in one way or the other invest in the offshore limited company, since shareholders are not the only ones who stand to lose in the event of a loss or failure.

The second reason and advantage of the limited offshore company is that financial institutions are more willing to extend lines of credit and financing to limited companies than unlimited companies. This does not only make it easier to access funds but makes it easier to undertake business ventures as desired by the offshore limited. The same can be said for trading partners and customers need to be given a certain degree and sense of confidence in the company with which they do business, since operating as a limited liability company offshore indicates having a standard legal structure and most individuals are more familiar with this type of setup than with some other setup or status with which they are unfamiliar with or unsure about. Having a well defined share structure and offshore limited company status increases chances for raising funds through the sale of shares publicly or on stock exchanges accordingly, as the offshore limited may be qualified to trade in the country in which it operates.

For the officers and shareholders of an offshore limited company managing and operating costs are virtually the same, liability – limited or unlimited does not have any major or direct impact on the expenses that the offshore company has to cover in its line of business, management and operations. With limited liability, however, having more far reaching and legal protection and separation of personal from business assets, the offshore limited therefore provides sound reason for being created.

An offshore limited company has no obligation to commence its operations soon after being incorporated or registered. Offshore limited companies can be formed with the development of a new product or service in mind, the expansion of a business that already exists or to protect a specific business name. Registering an offshore limited in advance of developing a new business allows the company to ‘age’, and become more credible as an establishment that has existed for a number of years, thereby capturing the confidence of the public and financial institutions.

For winding up purposes, protection is extended to the personal or private assets of the officers and shareholders of the offshore limited company since the assets of the limited offshore company can be used to cover costs and debts.

Offshore limited companies are important to international trade and finance and are responsible for a considerable portion of the business activities that occur in international financial centres.

Back to Top