How to Start an Offshore Forex Company

Sept. 21, 2010 - PRLog -- An offshore Forex company can be developed and designed in such a way as to benefit from the trillions of dollars a year in global foreign currency trading. To start an offshore Forex company the individual or corporation should do a little research as to the jurisdiction in which to obtain licensure and the jurisdiction from which and in which to operate. It is wise to make sure of the credentials of those offering to facilitate obtaining a license and setting up the business.

In the modern world it is increasingly common for individuals and corporations to do business overseas from their home country and, indeed, to set up banking, asset protection vehicles, and whole businesses offshore. When assets are already offshore it makes perfect sense to invest, trade, and save offshore too. The wise investor will look at where the most income can be made and, in the case of Forex trading, that is most often with the person or corporation with the Forex license.

To set up an offshore Forex company the first step is to find someone with the expertise to obtain a license and to assist in organizing the details of setting up the business. An offshore Forex brokerage will commonly be owned directly by another offshore entity such as an offshore corporation, an offshore foundation, an offshore trust, or a combination of these. The entity helping to set up the business and all of its necessary paperwork should have experience in doing so and should be able to provide valid references.

The second step in starting an offshore Forex company is to choose a jurisdiction. The company providing counsel should be able to provide more than one option and give convincing reasons for the jurisdiction most highly recommended. Some jurisdictions may provide easy paperwork and all of the legalities but not be practical places from which to do business.

The third step is to decide on what legal offshore entities will be part of the structure of the business. It is typically not necessary to have all entities in the same jurisdiction and often times is better to have a corporation, foundation, or trust in one country own the business operating in another jurisdiction. Setting up these fundamentals may, at times, be the most important aspect of long term success and should be done with someone fluent in the individual’s native language and customs.

Step four, after doing the paperwork and having a legal business, is to set up the business itself. Here, again, it is useful to have competent and reliable advice up front. One of the many advantages of doing business offshore is that it is typically cheaper to run a business. Picking a jurisdiction with fewer paperwork requirements and lower capital requirements is a good start. Then looking to outsource whatever services that can be more cheaply done in another offshore location is wise. The advisory company will typically have suggestions and even connections already in place for software solutions, website design and maintenance, and more. The wise business person knows that he or she need not re-invent the wheel and will take advantage of whatever opportunity saves money and enhances profits.

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