AmPlus Business Services Limited
Hong Kong Company Formation
Offshore companies are usually prohibited from conducting business in their jurisdiction of incorporation.
Due diligence in reputable offshore centres tends to be more strict than most onshore areas. For example, to open a bank account in the name of an offshore company, to comply with relevant anti-money laundering regulations, the bank will normally require documents verifying the identity of the signers on the account to be notarised and may require one or more professional reference letters from an attorney, accountant and/or banker.
Certain countries have "anti-tax haven" legislation which makes it difficult to conduct business in those countries using an offshore company.
Where a shareholder of an offshore company dies, it is usually necessary to have the will admitted to probate in the offshore jurisdiction as well, which can add to cost, delay and inconvenience in administering the deceased's estate.