The Best International Tax Planning solutions since 1991 |
A A |
| HOME > Services > Company formation > Jurisdictions > | |
What further restrictions might exist regarding the company activities?
- Foreign exchange restrictions. This may apply particularly in
places where the official currency of the given territory is not
convertible. However, in the most popular and well established
jurisdictions offshore companies are exempt from any foreign exchange
restrictions and may effect their transactions in any currency.
- Restrictions
relating to the holding of the annual meeting of directors. Some
locations prescribe, on a compulsory basis, that the directors of the
company meet at least once a year and that the meeting be held in the
given location. Locations of this kind are, for instance, the Cayman
Islands and Bermuda. In these locations, the requirement that the
compulsory annual meeting of directors be held in the territory
concerned is for the purpose of encouraging tourism in the area.
However, in most locations there are no restrictions of any kind and
the directors may hold their meetings in any country.
- Restrictions on the opening of bank accounts. In the case of certain countries, it is a legal requirement that part or all of the company's bank accounts be opened in the banks of the given country. However, the legislation of the vast majority of offshore zones enables companies to open bank accounts in any country in the world.