Seven Ideas about Offshore Investment Marketing

Sept. 13, 2010 - PRLog -- There are a number of offshore jurisdictions from which an international business corporation can obtain licensure to market investments. Setting an offshore investment marketing business starts with seeing the opportunity, satisfying a few easy requirements, and making the right business decisions up front. After that it is a matter of the practical aspects of the business, seeing the business as part of a larger offshore plan, and the functional aspects of running the business.

1) Opportunity

There are more and more individuals and corporations every day moving money out of their nations of origin into tax advantaged jurisdictions. Businesses commonly find it easier to operate some countries than others and will move assets, open offshore bank accounts, and set up operations for a variety of business related reasons. Retirees will move offshore. Those with wealth will choose to bank offshore and take advantage of the many legal asset protection and privacy vehicles that offshore jurisdictions offer. The point is that a lot of money has already moved out of its nations of origin and more is going every day.

Because many choose to take advantage of asset protection and privacy features of offshore jurisdictions they also choose to invest and otherwise do business in the offshore world. Thus an offshore business offering investment opportunities can be substantially more attractive that a business in their homeland offering exactly the same opportunities. This fact opens the door of opportunity to those wishing to set up an offshore investment marketing business.

What investments the company offers will typically be tied to offshore locations and take advantage opportunities in various jurisdictions around the world. However, it is not the exact nature of the investments that interests us here but the manner of how to use such an opportunity for ongoing substantial profit.

2) Requirements

There are a number of offshore jurisdictions offering government issued licenses for investment marketing. This may be as part of a larger enterprise such as a New Zealand Offshore Financial Company or may be licensed solely for investment marketing. Typical setup costs are around $27,000 and it is common to pay around $12,500 for yearly expenses including license renewal. The individual or corporation wishing to start an investment marketing business offshore will deal with an agent who will be knowledgeable as to which jurisdiction or jurisdictions in which to operate. Shareholders and officers will need to fill out basic application forms and pay a number of fees all of which are included in the figure cited above. Depending upon the jurisdiction there may be a requirement to hire local personnel. Depending upon which jurisdictions the principals choose for offshore banking, international business corporation setup, an international foundation or an international trust, requirements may vary. However, it is typical for requirements to set up this sort of business offshore to be simpler than back in ones country of origin.

3) Making the Right Decisions Up Front

Many of the basic decisions in setting up an offshore business are made up front. Doing it right the first time will be simpler than back tracking to get it right later. In this regard the choice of an agent is vitally important. An agent who has experience dealing across jurisdictions will typically not be tied to local interests in his or her jurisdiction. Thus the quality of advice one receives may be substantially better. Although a given jurisdiction may be the world’s best for getting a license and operating an offshore investment marketing business the jurisdiction may not be the best for offshore banking, setting up an international business corporation, or integrating the various possible offshore “solutions” necessary for the kind of excellent asset protection and privacy available. Find an agent with experience across jurisdictions for the best overall solution to your business needs.

What applies to the agent also applies to the jurisdiction. It may well be that several jurisdictions will offer essentially the same licensure for investment marketing. However, some jurisdictions are substantially more tax advantaged than others for individuals versus corporations, for example. Picking the most advantageous jurisdiction at the start can save a lot of headaches later on.

4) Practical Aspects and Good Choices

It is wise at the beginning to be clear about goals. The individual or corporation may wish to grow the investment marketing business into a thriving enterprise. Decisions that will allow making the business scalable or expandable can be done at the beginning. If, on the other hand, the marketing business is to be a small part of a larger enterprise located offshore, for example, for tax reasons, then choosing to limit the enterprise and its costs will make sense. Working with an experienced agent from the beginning will help with these kinds of choices.

5) An Offshore Business as Part of a Larger Plan

Many take their businesses and hard earned assets offshore in order to optimize the tax consequences of their actions. Many choose to form offshore trusts and vehicles such as a Panama Private Interest Foundation in order to enhance the security and privacy of their assets. Those setting up an offshore investment marketing business will often wish to integrate the various offshore protection features of several legal vehicles in order to obtain the same degree of asset protection for their profits as one might for a lifetime of savings. Thinking globally, so to speak, at the beginning will allow one to properly plan in such a way as to arrive at an effective, integrated offshore solution instead of an isolated business.

6) Functional Aspects of Running the Business

Although an individual or corporation may have extensive experience marketing investments their home country there can be subtle and not so subtle differences offshore. One does not have to reinvent the wheel in these cases. A competent agent will typically have references to services such as accounting, web site set up and maintenance, and help with local hiring. Taking advantage of ready made solutions can make the task of setting up an offshore investment marketing business just that much easier.

7) How to Make it Happen

It starts with a phone call or an email. Make sure that there is not a language barrier between you and the agent as this could be a problem that could destroy a lot of good planning. Make sure that the agent has multi-jurisdictional experience. Then ask questions, make decisions, and start the business.

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An offshore formations and banking specialist offering offshore structures, formation of companies, foundations, banks and financial institutions, incl government issued financial licenses.

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