Purchasing an offshore company in 2025 will continue to be one of the strategic opportunities for entrepreneurs to strengthen their positions in international markets and preserve assets. This opportunity can be utilised by registering a new offshore company or by purchasing a ready-made company. In this article, we will examine what these procedures entail and provide a brief overview of some offshore jurisdictions.
Offshore Company – What Is Important to Know?
In one of our articles, we discussed in detail what an offshore company is and how it works, as well as considered examples of using such companies in international business. This information is equally applicable to both a ready-made and a newly registered offshore company.
Let us recall that regardless of the decision to buy or register an offshore in 2025, attention should be paid to current regulatory changes prompted, in particular, by the fight against base erosion and profit shifting, which affect work with offshore companies. The main trends are as follows:
| Trend | Implications for Owners of Offshore Companies |
|---|---|
| Tightening of Checks and KYC Procedures | Owners of offshore companies should be prepared for a high degree of business transparency, as many offshore jurisdictions are implementing mechanisms for collecting and transmitting data about their owners to state authorities. |
| Role of Banks | In recent years, offshore companies have faced several difficulties in opening bank accounts, especially for conducting current settlement operations. In addition, banks in countries participating in automatic information exchange are obliged, in particular, to disclose the identity of beneficiaries of offshore companies and transmit information about such companies’ accounts to the tax authorities of their countries for subsequent transfer to the countries of tax residency of the beneficiaries within the framework of the Common Reporting Standard (CRS). |
| Transparency of Financial Reporting | In many offshore jurisdictions, the requirement regarding financial reporting has evolved from simple keeping and storing such reports within the company itself to submitting relevant documents to the state authority. |
| Ensuring Economic Presence (economic substance) | Many offshore jurisdictions are adopting separate legislative acts or amending existing legislation, requiring company owners in certain cases to ensure economic presence in the country of the company’s registration. Generally, this implies having an office and staff performing management functions, which significantly increases the cost of using offshore structures. |
It can be expected that these trends will continue to develop in 2025, and those offshore jurisdictions that do not follow them are likely to be included in “black” lists of countries. Many states, including EU countries, have such lists or their equivalents. Offshore companies registered in countries from the “black” list are usually subject to additional restrictions, such as increased tax on dividends paid in their favour.
Relevance of Using Offshore Companies in 2025
In light of the observed tightening of requirements and regulatory standards, business owners may question the advisability of purchasing or registering an offshore in 2025.
In this context, it is primarily worth mentioning the continued legality of using offshore companies. The aforementioned changes indicate not the end of the offshore business era but its evolution. Modern offshore companies will increasingly integrate into the global financial system, adapting to the requirements of international organisations and banking compliance standards. This will allow them to transform from tools of tax evasion into legal and effective mechanisms for structuring international business and protecting assets.
Thus, offshore companies do not lose their relevance; however, their use requires a more thoughtful and professional approach.
Buy a Ready-Made Offshore or Register a New Company – Which Is Better?
You can take advantage of the benefits of offshore companies in two ways: buy a ready-made offshore or register a new offshore company. For comparison, we present the features of these procedures in the table below:
| Ready-Made Company | New Company | |
|---|---|---|
| Definition |
A ready-made company is already registered, meaning it already has a name, registration number, and key documents (at least the articles of association and memorandum of association). |
It is necessary to undergo all stages of the registration procedure, including choosing a jurisdiction, preparing documents, and submitting them to the registration authority. |
| Commencement of Activities |
Work with a ready-made company can begin immediately after paying its cost. |
A new company can only be used after the official completion of the registration procedure. |
| Flexibility of Structure |
The structure of a ready-made company in many jurisdictions is already set, and the director and shareholder are already appointed. Upon purchase, you can retain the existing structure or re-register the company to another person. |
By registering a company “from scratch”, the owner can fully build the structure to suit the needs of their business. |
| Interaction with Banks |
Since ready-made companies have a certain period of existence before their acquisition, banks may additionally request documents confirming their “history”, even if no bank account was opened. If, during the acquisition of the company, nominee directors and shareholders are replaced with new individuals, the document package for the bank may become even more extensive. |
As a rule, a newly registered structure that meets all modern requirements appears more understandable and transparent to banks. |
| Risks |
Our company guarantees that the ready-made offshore companies purchased from us have not conducted any activities, not opened bank accounts, and not taken on any obligations since their registration. Considering this, it should be remembered that general risks associated with offshore jurisdictions remain for both ready-made and new offshore companies. In addition, it is important to consider that if the country where the owner of the offshore company is a tax resident has legislation on Controlled Foreign Companies (CFCs), then the owner of such a company may, in certain cases, be obliged to report on such companies. |
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Summarising the above, the advantages of purchasing a ready-made company largely come down to the speed of the procedure, as there is no need to wait for the approval of a new name and the processing of all documents by the state authority. However, in most cases, registering a new company is still a more preferable option, as it provides more control and flexibility, allowing you to adapt the business structure to specific tasks.
Popular Jurisdictions for Offshore Companies in 2025
Before creating an offshore company or choosing from a list of ready-made companies, you need to decide on a suitable jurisdiction. Despite the legislation of many popular offshore zones becoming similar in recent years due to adherence to global initiatives in taxation, certain nuances may vary.
Below is an overview of some popular offshore jurisdictions where it is possible to register or purchase an offshore in 2025.
Seychelles
Registration of an offshore in the Seychelles is carried out within a few working days and is relatively straightforward. The registration is fully conducted by a specially appointed registration agent, which is a local licensed company.
The status of an offshore in the Seychelles is regulated by the International Business Companies Act (IBC) 2016, as amended in 2021.
When choosing the Seychelles for registering or purchasing an offshore, it should be noted that in 2020–2021, the country underwent significant corporate and tax legislative reforms, affecting IBC companies in particular.
One key requirement is the disclosure of information about the ultimate beneficial owners of companies. This requirement means that relevant information is provided to registration agents and stored with them. Information about beneficiaries remains inaccessible to the general public, thereby ensuring the confidentiality of company owners. However, the registration agent transmits such information to the authorised state body.
Another important requirement for offshore companies in the Seychelles is ensuring the storage of:
- accounting records and
- general financial documentation.
These documents must be stored in the office of the registration agent. Non-compliance with this requirement can result in fines for both the company and its director.
In addition, some Seychellois companies are subject to the requirement to ensure economic presence.
British Virgin Islands, BVI
Registering an offshore in the BVI can also be done through a registration agent within a few working days. Unlike the Seychelles, all companies in the BVI, including offshore ones, have a single status and are regulated by the BVI Business Companies Act 2004, with the latest amendments adopted in 2024.
Recent changes affect similar aspects of offshore companies’ activities as the reforms in the Seychelles. For example, one requirement is that information about beneficial owners is transmitted to the state registration authority (BVI Registrar of Companies). However, this information remains inaccessible to the public.
In 2023, an obligation was introduced for BVI companies to submit an annual return to their registration agent. Essentially, this return represents the financial information of the companies and consists of a profit and loss statement and a balance sheet.
The BVI also has rules for ensuring economic presence. However, they apply only to companies engaged in the following activities:
- Banking activities
- Insurance activities
- Fund management
- Finance and leasing
- Headquarters activities
- Shipping business
- Intellectual property activities
- Holding activities
- Distribution and service centre activities
Marshall Islands
The creation of an offshore in the Marshall Islands is carried out in accordance with the Business Corporation Act, enacted in 1990 as part of the broader Associations Law.
The Marshall Islands have not remained isolated from global trends in strengthening control over offshore structures. Since December 2023, the jurisdiction has implemented Beneficial Ownership Regulations, which:
- Clarify the concept of “beneficial owner”
- Require legal entities, including offshore companies, to collect and store information about such individuals
Unlike the Seychelles and the BVI, these regulations do not require this information to be sent to a state register. However, relevant information must be provided upon request by a state authority.
In 2018, the jurisdiction introduced a requirement to maintain and store accounting records and all supporting documents, which should be sufficient to explain and substantiate all financial transactions and determine the company’s financial position. These documents must also be provided upon request by a state authority.
In the same year, the requirement to ensure economic presence was introduced. It applies to companies engaged in the following activities:
- Banking activities
- Insurance activities
- Fund management
- Finance and leasing
- Headquarters activities
- Shipping business
- Intellectual property activities
- Holding activities
- Distribution and service centre activities
Commonalities Among Jurisdictions
The reforms described above in classic offshore jurisdictions affect aspects of offshore companies’ activities such as:
- Increasing transparency
- Greater accountability and enhanced control
- Requirements for some companies to ensure economic presence in the country of registration
Thanks to these reforms, classic offshores maintain their reputation as jurisdictions willing to follow international standards. At the same time, these countries still retain the main advantages of classic offshore jurisdictions, including the absence of taxes on profits and the simplicity of registering corporate structures, making them attractive for international business.
Concluding Provisions
Offshore companies continue to be an attractive tool for conducting business, despite changes in legislation and increased control at both the international level and within individual offshore jurisdictions. You can take advantage of this tool by purchasing a ready-made offshore or by registering a new company. The comparison provided of these options highlights their main characteristics, advantages, and disadvantages.
