Business development in the International Company Formation Sector

SCCN has successfully advised an international Company Formation Agent in the UK regarding their business development. The Company operates in a highly competitive market had difficulties finding added value for their clients. The company formation market consists of hundreds of formation agents who offer their services online. These services include offering to set up companies, trusts and foundations cheaply almost anywhere in the world. The customer only needs to click on the company desired, perhaps adding some optional extras such as a bank account, an offshore credit card, mail-forwarding or letterhead, followed by the checkout.

As in any industry, incorporation includes a mix of wholesalers and retailers. The wholesalers, such as Hong Kong-based Offshore Incorporations Ltd (OIL), sell companies to legal and accounting firms, banks, corporations and also (often in bulk) to web-based resellers.

According to an article in the Economist, the two largest providers offshore may each have 10% of the global market. Onshore markets are more concentrated. Some companies, such as the Netherlands’ Orangefield and Intertrust of Switzerland, focus primarily on the corporate-secretarial market. They tend the garden that others have planted.

SCCN advised – apart from some managerial details – to collaborate with a law firm to supply additional services to the clients and found a law firm that was interested.