How to setup an offshoring company?

How to move one’s business offshore is a very common issue among entrepreneurs. This presentation will provide you with an outline of what you need to know to offshore your company today.
Off Shoring – what is it?
Simply…..taking part of your business to another jurisdiction:
- Call Centers.
- Maintenance.
- Engineering.
- Corporate.
For this workshop, we will look at CORPORATE.
Corporate
Taking your holding or parent company to a jurisdiction outside of your home country.
Why would you do that:
- Predictability of laws.
- Tax efficiency.
- Minority rights protection.
- Foreign investor-friendly.
- Specialized holding structures.
So you have set up your company and then comes along an investor and says lets set up an offshore company. WHY?
- Protection of rights – drag and tag.
- Minority control – directors and veto rights.
- Foreign investor-friendly – not knowing Egyptian laws.
Where?
Main offshore countries:

- The British Virgin Islands.
- Mauritius.
- Caymans.
- Delaware.
- Gibraltar.
- Ras El Khima.
- Amsterdam.
- Luxembourg.
So which one?
This will depend on a number of variables:
- Operations of the business – EU, USA, Middle East, Africa or Asia.
- Market growth – where you heading? (EU, USA, Middle East, Africa or Asia).
- Offshore specialization – Luxembourg for finance.
- What is the preference of the investor? US investor, EU investor or ME investor.
CONFUSED!
Let’s take a step back and recap:
- Offshoring is taking part in your business or setting up a holding company in a different county.
- We do this because some countries give us better benefits in setting up a holding company.
- We can choose from a lot of different countries.
- We chose the country based on a number of variables.
How do we set up an offshore company?
STEP 1: Choose your jurisdiction
Advantages:
BVI – Cheap, flexible, low maintenance, no accounting, 0% tax.
Mauritius – Egyptian embassy, flexible, low maintenance, min accounting, double tax treaty, 0% tax.
Delaware – Egyptian embassy, cheap, flexible, low maintenance, some accounting, access to market.
Gibraltar – access to market, 0% tax.
Disadvantages:
BVI – bank account, time difference, no Egyptian embassy.
Mauritius – can be costly, higher KYCs requirements, accounting requirements.
Delaware – can be costly depending on structure, US tax applicable, bank account.
Gibraltar – bank account, expensive, accounting requirements, no Egyptian embassy.
STEP 2: Choose your agent
-
Similar process but with slight variations:
- Registered agent.
- KYCs – needs to be notarized
- Copy of passport
- Utility bill as proof of address – not old than three months
- Bank reference letter – temple provided
- CV
- Bank statement – 6 months
- Shareholder Form.
- Directors Form.
- Source Of Wealth Form.
- Business Plan.
Next Step
Once the company has been set up the registered agent will provide you with the following:
- Certificate of Incorporation.
- Memorandum and Articles of Association.
- Shareholders Register.
- Directors Register.
- Share Certificates.
Some jurisdictions/countries vary.
Next Step II
We need to link them
- Offshore Holding Company
- Company
Offshore buys Egyptian Company
- Offshore Holding Company
- Company
For the off-shore company to acquire your company the following documents need to be notarized and legalized at:
- Your company’s embassy in that country, then
- The Ministry of Foreign Affairs in your country.
- Please take note – BVI – The Foreign and Common Wealth Office – London.
Documents:
- Certificate of Incorporation.
- Memorandum and Articles of Association.
- Shareholders Register.
- Directors Register.
Tricks of the trade!
Jurisdiction:
- Choose one you will use for market growth;
- Budget properly (don’t go cheap as you pay for what you get);
- If the investor is choosing, the investor can pay for it!
- Having an Egyptian embassy there lowers your costs and time;
Agents:
- Choose a good agent;
- Keep a good relationship with them;
- You can change agents if needed;
- Be the instructing party – you might fire your lawyer!
Company:
- Pay your bills on time and avoid penalties;
- Keep all your paperwork in order and copies of everything;
- Use your offshore company, don’t forget it!
LET’S TRY IT….
Company
- LLC or JSC.
Activities
- Tech?
Looking to expand where?
- US
- EU
- ME and Africa.
What does the investor want?
- English/Common law.
- Bank account.
- Tax-efficient.
- Low accounting.