Concept
An offshore company (classically—IBC, International Business Company) is a company in a jurisdiction with zero corporate tax and simplified reporting: BVI, Cayman Islands, Seychelles. Historically—a tool for anonymity; today—a neutral "wrapper" for a holding, fund or transaction, working only in transparent form.
What has changed
The era of "secret offshores" is over. Since 2019, BVI, Cayman and others have introduced economic substance requirements: a company conducting relevant activities must have a real presence—office, people, management on the ground. In parallel, beneficial ownership registries and automatic exchange (CRS) are in operation. Anonymity is gone.
⚙️ An offshore today makes sense only as a tool for neutral structuring—with real substance and full transparency. Without this, it leads directly to bank refusal and tax reassessments.
Where it is appropriate
BVI—a cheap and flexible holding or SPV wrapper, popular for joint ventures and asset ownership. Cayman—the standard for investment funds. Seychelles—a budget option, but with reputational limitations at banks. The choice is dictated not by "zero tax," but by whether banks and counterparties will accept the structure.
💡 An offshore company is valuable as a building block in a legal structure—under a holding with substance and with full disclosure of beneficiaries—not on its own.
This material is for informational purposes only and does not constitute individual legal advice.
Key factual claims
- The era of "secret offshores" is over.