Offshoring your business involves having deep industry knowledge. Apart from that, companies are also required to have specialized expertise in strategy, operations, and risk management among others. Therefore, it is important for companies to enter into a strategic partnership with specialist firms that help clients optimize their businesses and improve their operations.
For companies looking to move business offshore, following these steps will help them to accelerate their move offshore and seize the most attractive opportunities:
Step 1: Develop a business plan
Moving your business overseas to take advantage of the lower costs could help improve the bottom line. Take advice from a qualified tax attorney (someone who understands international tax law) and an offshore consultant to frame your business and tax plans.
Step 2: Select your country of operation
Now that you have a tax plan and an operational plan, make a list of possible geographies and weigh in their positives and negatives. There is a whole gamut of issues that needs to be taken care of. Specialist advisors will help you to navigate through issues such as licensing, audit, accounting, compliance, taxation, and banking.
Step 3: Start incorporating your organization
This phase would involve setting the process for managing payroll, office rent, and local expenses. It involves working alongside with your service provider or advisor. Your advisor will also counsel you on the steps to follow to retain offshore earnings.
Step 4: Establish a corporation to handle the billing function
Setting up a second corporation in a tax-free jurisdiction exclusively to bill clients is a move to minimize taxes in your country of operation. This is a key step to minimizing your worldwide taxes.
Step 5: Protect your intellectual property offshore, get licences, etc
Moving your intellectual property offshore as soon as possible is an important step to protecting your assets. This has a significant bearing on tax benefits. Licensing is another aspect of offshoring that needs to be complied with. It is important that your offshoring partner adhere to transparent dealings when filing for patents or applying for licences.
Step 6: Setup banking, bookkeeping and accounting
Offshoring requires having multiple bank accounts, including one for local expenses, another for billing, etc. Your advisor will help you to get started by recruiting an in-house book-keeper to do the books, maintain accounting control, and meet financial compliance.
Step 7: Find local professionals
Having access to affordable and available candidates makes a lot of difference to any business. Talent acquisition continues to bog down new offshoring businesses, but companies can overcome this obstacle with the right partner alongside.
Ocfam is a leading and most specialized consultancy firms for financial services companies which provides End to End offshore services from Company Formation, Fund Raising, Licensing Bank Operation Assistance, Insurance, Immigration services, Financial and Tax Consultancy and other critical services for your global expansion. Ocfam has a strong pedigree in the finance domain and offers precise consultation for offshore set up with sound financial advisory. Our team of international lawyers and trust professionals provide unique and tailored solutions for the financial services sector in global licensing, audit and accounting, compliance and risk management, taxation, banking, payment solutions, and corporate consultancy services. We serve clients from all the continents and service some of the largest financial services companies in the world.