There is no minimum amount established by law. The decision whether or not to establish an offshore company depends on the objectives of the structure and the relationship between its costs and the benefits it can provide.
Typical Costs
The recurring costs of maintaining an offshore company vary considerably depending on the jurisdiction and the complexity of the company, but they may include:
- Annual government fees;
- Registered agent or administrator (where required);
- Accounting and financial statements;
- Audit (in certain jurisdictions);
- Compliance with government filing requirements; and
- Compliance with local tax obligations (where local tax returns are required).
When Does It Usually Make Sense?
An offshore company may be worth considering if you intend to:
- consolidate investments held in multiple countries. In this case, it is important to compare the company’s maintenance costs with the benefits it provides, and in many cases, a structure becomes worthwhile when foreign investments exceed approximately BRL 5 million;
- invest through a legal entity to avoid inheritance tax abroad;
- implement an international estate planning strategy;
- have foreign partners or investors;
- operate an international trading business (such as a commodities trading company); and
- separate operating assets from personal assets.
For a Brazilian Investor
If you are considering establishing an offshore company because you expect to build significant wealth over time, rather than because you already have it, it is also worth evaluating the right moment to do so.
Many investors begin by investing directly as individuals and only migrate to a corporate structure when the size of their portfolio or the complexity of their investments justifies the associated costs.
How Dartmouth International Can Help
Dartmouth International assists clients and their advisors with the incorporation and administration of companies in multiple jurisdictions, providing support throughout the entire life cycle of the corporate structure. Our team assists with selecting the most appropriate jurisdiction, incorporating the company, complying with corporate, regulatory, and accounting obligations, and maintaining the company on an ongoing basis, helping ensure that each structure is efficient, compliant, and aligned with the client’s wealth planning, estate planning, or business objectives.
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