Anti-corruption and fraud
Automatic exchange of information.
Anti-money laundering
Following the 1961 Hague Apostille Convention (see Apostille Convention on Wikipedia), the apostille was created to simplify the legalization of documents across borders. Some banks require that documents not only be notarized, but also have an apostille. An apostille takes longer to obtain and generally costs significantly more. A notary can usually help you get your documents apostilled.
A structure in which the assets of the UBO or UBOs are protected from hostile parties, such as creditors, bankruptcy, divorce, lawsuits, etc.
These are shares that are not registered with anyone or anywhere. Instead, the owner of the company is the person who holds (bears) the shares. Bearer shares are increasingly becoming a thing of the past due to international pressure. Many jurisdictions that allow bearer shares now require them to be held on behalf of the shareholder with a custodian
A Business Company is a type of company available in the British Virgin Islands. It is similar to an IBC.
British Virgin Islands, one of the major offshore jurisdictions.
A certificate issued by a jurisdiction's corporate registry to confirm that a company exists and is in compliance with local laws.
A certificate issued by the companies registry of a jurisdiction to confirm that a company has been registered in that jurisdiction
A certificate issued by the companies registry of a jurisdiction that lists the members, partners, directors, and/or shareholders (as applicable) of that company.
See notarial authentications.
Countering the financing of terrorism
See Certificate of Good Standing.
See certificate of incorporation or certificate of office.
See certificate of incorporation or certificate of office.
Special Business License. A corporate form in the Seychelles.
See Due Diligence.
A double taxation agreement, also called a double taxation convention (DTC) or double tax treaty (DTT), is an intergovernmental agreement to prevent double taxation. For example, if a resident of Jurisdiction A owns a company in Jurisdiction B, they may be subject to tax in both jurisdictions. With a DTA, the tax rate is reduced or eliminated. DTAs rarely contain disclosure provisions.
Double Taxation Agreement. Same as DTA
Double Taxation Treaty. The same as the Double Taxation Agreement.
A common practice whereby a company assesses you as a customer before engaging in business. This is done to mitigate the risk of fraud, money laundering, or other crimes.
See Strengthened Due Diligence
Exchange of information.
See also Due Diligence. Enhanced Due Diligence (EDD) is performed on particularly risky products, services, customers, and suppliers. It is more comprehensive than due diligence.
A type of corporate law under which corporations are exempt from tax
Financial Intelligence Unit.
An agent in the offshore financial services industry, often used with a negative connotation to mean someone who through clandestine means performs offshore financial services for others, such as creating false identities and opening bank accounts with false, stolen, or purchased identities.
A designated area subject to taxation and legislation other than the jurisdiction of which it is a part
See Free Trade Area.
Financial Services Commission.
See Free Trade Area.
Free zone. See Free trade zone.
A Global Business Company is the corporate form available in Mauritius. It is similar to a private limited company. There are two classes: GBC I and GBC II.
Gibraltar
A company that does not trade but only holds the assets, capital, and/or shares of other companies.
International Banking Act. A non-resident offshore banking law in many offshore jurisdictions, popular in the Caribbean.
International Business Company (IBC) is the preferred corporate form in many, if not most, offshore jurisdictions. An IBC is similar to a private limited company. Most IBCs are tax-exempt, but there are some notable exceptions, such as Barbados, where IBCs pay a nominal tax of a few percentage points. IBCs generally do not have access to DTAs.
International Financial Center
A company whose purpose is to invest in other companies. Different from holding companies in that they actually trade by investing in companies.
Joint venture.
Know your customer. Another term for due diligence. See also Due Diligence
Limited Life Company or Limited Liability Company.
Limited liability partnerships. LLP partners usually all have limited liability
Limited partnerships. LPs typically contain at least one general partner, who is personally liable, and at least one limited partner, who is not personally liable.
New Manx Vehicle. A corporate form in the Isle of Man, based on the commercial companies legislation of the British Virgin Islands.
A nominee is a person acting on your behalf. There are three types of nominees: nominee shareholders, nominee directors, and nominee signatories. Nominee shareholders hold shares in a company, and nominee directors act as administrators, often used if the UBO does not want to appear in public records. Nominee signatories sign bank accounts, so your name does not appear in bank records.
Many banks and some public service providers require certified copies of your passport, business documents, and other documents. These copies are certified by a licensed professional; usually a notary, lawyer, or senior bank staff. See also Apostille.
Offshore banking unit. Offshore banking legislation in Taiwan and some other jurisdictions.
Offshore financial center.
Short for offshore service providers, these are companies that set up offshore companies and introduce you to offshore banks.
Politically exposed person, an indicator of money laundering risk.
An individual who does not reside in any jurisdiction for a sufficiently long period to be considered resident for tax purposes, thus avoiding tax liability.
See Permanent traveller
See Qualified Introducer.
A concept used by some banks to designate and qualify introducers who can refer customers to the bank.
This is often your OSP when you set up your offshore company. The registered agent pays annual government taxes on your behalf and provides your company with its registered office, which is your company's local address in the country of incorporation.
The reputation of a jurisdiction, as measured by how it is perceived internationally.
An act by which a jurisdiction creates a separate and segregated corporation (or trust, foundation, etc.) and/or a tax regime for non-resident corporations. Highly criticized.
A bank incorporated in one jurisdiction, typically with very lax banking regulation, but operated (primarily or entirely) from another jurisdiction.
A dormant company, which may or may not have been active, is being sold by a public service provider for immediate use. Shell Company: A company with no or no commercial or holding activity. Often used only as a billing entity between other companies within a conglomerate or group of companies, or as an owner of assets.
A bank incorporated in one jurisdiction, typically with very lax banking regulation, but operated (primarily or entirely) from another jurisdiction.
Single Person Company, a corporate form in Bahrain.
Special Purpose International Companies Act. SPIC is a type of company in Samoa. It shares similarities with both trusts and corporations. Structure: A combination of one or more legal entities.
Saint Vincent and the Grenadines, a minor offshore jurisdiction.
The act of avoiding taxes through legal means. Tax evasionThe (typically illegal) act of tax evasion.
A jurisdiction with low or no taxes, or tax legislation specifically designed to reduce taxes.
Turks and Caicos Islands, a medium-sized offshore jurisdiction.
Tax Information Exchange Agreement is an intergovernmental agreement that allows both parties to disclose otherwise confidential information. Trading company: A company that trades. See also holding company and investment company.
Ultimate beneficial owner, a term used to determine who ultimately owns a legal entity. For example, in a nominee-owned structure, you are the UBO.
Risk capital.
Limited Liability Company, a type of company in Bahrain. Comparable to an LLC.
