As a country with many benefits for international businesses, Samoa has been attracting more and more entrepreneurs all over the world to form their Samoa “offshore” companies. It is famous for not only its favorable tax regimes but also for its high protection of business assets and many other benefits.
If you are looking for an offshore jurisdiction, Samoa is worth putting in your desired list. Let us walk you through defining a Samoa offshore company and how to start one.
1. Overview of Samoa offshore company
Samoa is formed by a group of small islands located in the central Pacific. Samoan and English are the main languages. The most popular legal entity in Samoa is International Company. You can register an offshore company to enjoy tons of benefits provided by the country. Below are the key characteristics of Samoa offshore company:
Corporate legislation. The country uses English Common Law to govern the business registration. All international companies are mainly managed by International Companies Act 1988. There are also other legislations for specific sectors such as trust, banking or insurance.
Key offshore business entities. International Company and Limited Life Company are two main Samoa offshore companies. The business entities fall under Samoan International Financial Services Authority (SIFA) Regulations. Each entity has a different corporate structure.
Key company types. Four common types of companies registered under the Act are Holding Company, Investment Holding Company, International Trading and Asset Protection Company.
Trading restrictions. Samoa offshore companies can’t do business with local real estate companies. Moreover, they can’t perform certain activities such as banking, trust management, fund management, insurance, assurance without appropriate licenses.
If you are planning to register one of aforementioned business sectors, do consult specialized departments or local authorities to know the requirements.
2. Advantages and disadvantages of Samoa offshore company
As an offshore jurisdiction, Samoa offers plenty of advantages for international companies registered within the border. Here are the reasons why international investors pick the country for offshore company formation.
High level of corporate privacy. One of the main attractive factors of Samoa offshore company formation is its layered corporate confidentiality. The government doesn’t require companies to publicize names and personal information of shareholders, directors and managers. It also allows companies to use nominee services working on behalf of the companies to sign and appear on public documents.
High protection of company assets. Thanks to the maintenance of corporate anonymity, the tracking of the asset owners is difficult or even impossible. Therefore, the company can keep its assets safe from the creditors.
Friendly business tax regimes. Samoa is famous for being a no-tax country for offshore companies. Your offshore company will not be subject to any corporate taxes for all incomes deprived from jurisdictions other than Samoa.
The company is exempted from income tax, corporate tax, capital gains tax, inheritance tax, estate tax and stamp duty. Only residents have to pay taxes at 27%. No tax returns are required.
In addition, the country has only a few double tax treaties with other nations. Offshore companies registered in Samoa deal less fiscal inquiries from other parties out of the jurisdiction.
Maintained tax transparency. The country has signed multiple agreements with many other countries regarding the prevention of money laundering or tax evasions.
Additionally, Samoa isn’t blacklisted as a unco-operative tax haven by Organisation for Economic Co-operation and Development (OECD) or Financial Action Task Force (FATF). You won’t be afraid of being in trouble with tax departments if you comply with the country’s regulations.
English as the main language for corporate legislation. This is a big advantage for foreign investors. Understanding the laws is one of the most important things to enter a business in a country. And with English, the barriers are deemed to be more relaxed. Furthermore, you can incorporate your business in Samoa in any language. This will ease your incorporation process as an international business owner.
Minimal reporting requirements. Reporting procedures are usually a headache issue for most business owners. However, registering an offshore company in Samoa will relieve you from annual reporting or auditing requirements.
You also don’t need to file accounting records to the government. The filings are not mandatory but the keeping of records is advisable to show your company financial position in some cases or to use for inspection purposes.
No exchange control. The Samoa government allows companies to trade in any desired currency without any charges. You don’t need to worry about paying extra fees for trading with different currencies. USD is the official currency used for all international business transactions.
Besides many favorable features, there are some disadvantages that international investors should know.
For International Company, there is no minimum capital requirement but the minimum authorized share capital of US$ 1 must be paid at the registration. Furthermore, the high corporate confidentiality makes it difficult to follow the responsible persons for certain business violations.
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