Following the Hague apostille convention of 1961 (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 affixed. An apostille takes longer to obtain and typically costs significantly more. A notary can usually help you have 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 actions that are not registered with anyone or anywhere. Instead, the owner of the company is the person who owns (carries) 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
Business Company is a form of company available in the British Virgin Islands. Similar to IBC.
British Virgin Islands, a major offshore jurisdiction.
A certificate issued by a jurisdiction's company register confirming that a company exists and is in good standing with local laws.
A certificate issued by the company register of a jurisdiction to confirm that a company has been registered in that jurisdiction
A certificate issued by a jurisdiction's company register listing the members, partners, directors and/or shareholders (as applicable) of that company.
Special Business License. A company form in Seychelles.
The Double Taxation Agreement, also called the DTC (Double Taxation Convention) or DTT (Double Taxation Treaty), is an intergovernmental agreement to prevent double taxation. For example, if a resident of Jurisdiction A has a corporation in Jurisdiction B, he could be subject to tax in both jurisdictions. With a DTA, the tax rate is reduced or removed. DTAs rarely contain disclosure provisions.
A common practice whereby a company evaluates you as a customer before undertaking a business. This is done to mitigate the risks of fraud, money laundering or other crimes.
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 company law under which companies are exempt from tax
An agent in the offshore financial services industry, often used negatively in the sense of 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 different from the jurisdiction of which it is a part
Global Business Company is the company form available in Mauritius. It is similar to private limited. There are two classes: GBC I and GBC II.
A company that does not trade but only holds assets, capital and/or shares of other companies.
International Banking Act. An offshore banking legislation not resident in many offshore jurisdictions, popular in the Caribbean.
International Business Company is the preferred company form in many, if not most, offshore jurisdictions. IBC is similar to private limited. Most IBCs are tax free, but there are a few notable exceptions, such as Barbados, where IBCs pay a nominal tax of a few percentage points. IBCs usually do not have access to DTAs.
A company whose purpose is to invest in other companies. Different from holding companies in that they actually trade in the act of investing in companies.
Know your customer. Another term for Due Diligence. See also Due Diligence
Limited Life Company or Limited Liability Company.
Limited Liability Company. LLP partners usually all have limited liability
Limited partnership. 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 company form in the Isle of Man, based on the commercial company legislation in the British Virgin Islands.
A candidate is a person acting on your behalf. There are three types of nominee: Nominee Shareholders, Nominee Directors, and Nominee Signatories. Nominated shareholders hold shares in a company and nominee directors act as directors, often used if the UBO does not want to appear in public records. Nominee signatories are signatories to bank accounts, so your name does not appear in bank records.
Many banks and some OSPs require certified (certified) copies of your passport, business records, and other documents. These are copies certified by a qualified professional; usually a notary, solicitor or senior bank staff. See also Apostille.
Offshore banking unit. Offshore banking legislation in Taiwan and some other jurisdictions.
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 has not resided in any jurisdiction for a period long enough to be considered a resident for tax purposes, thereby avoiding tax liability.
A concept used by some banks to designate and qualify introducers who can refer customers to the bank.
This is often your OSP when setting up your offshore company. The registered agent pays the annual taxes to the government 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, assessed by how it is perceived internationally.
An act by which a jurisdiction creates a separate and segregated company (or trust, foundation, etc.) and/or tax legislation for non-resident companies. Highly criticized.
A bank incorporated in one jurisdiction, typically with very lax banking regulation, but operated (mostly or entirely) by another jurisdiction.
An inactive company, which may or may not have been active, for sale by an OSP for immediate use. Shell Company A company with no or actual holding or trading activity. Often used only as a billing company among 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 (mostly or entirely) by another jurisdiction.
Special Purpose International Companies Act. SPIC is a type of company in Samoa. It bears similarities to both trusts and corporations. Structure A combination of one or more legal entities.
The act of evading taxes through legal means. Tax evasion The (typically illegal) act of tax evasion.
A jurisdiction with low or no taxes, or tax legislation specifically designed to reduce taxes.
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 assess who ultimately owns a legal entity. For example, in a nominee-owned structure, you are the UBO.
With Limited Liability, a type of company in Bahrain. Comparable to LLC.
