Like any other corporate establishment, offshore companies and international business corporations akin must comply with regulation in both the home state as well as a host state. There is a common misconception that legal persons only have to conform to and follow the rules of the country of incorporation. Sovereign states are independent and therefore make their own rules. Individuals and corporations willing to enter the territory either to provide services or use local services, must obey to the local requirements. One of these sets of requirements relates to personal data protection.
In Europe, data protection for natural persons is regulated at Union level via the General Data Protection Regulation (GDPR). Since natural persons that reside in the European Economic Area are protected under the GDPR, any enterprise that deals with the personal data of these citizens falls under the scope of the Regulation. The Regulation ensures the free movement of personal data within the European internal market. As such, the Regulation combines a uniform set of rules for data protection in all the member states whilst providing professional data controllers and processors with a clear framework for protection and regulatory compliance.
The territorial scope of the regulation explains its applicability. Offshore companies, international business corporations and other legal persons who process the personal data of individuals in the context of the activities of an establishment of a controller or processor in the Union, regardless of whether the processing takes place in the Union or not. Article 3 of the Regulation further considers the processing of personal data of data subjects who are in the Union by a controller or processor not established in the Union, where the processing activities are related to the offering of goods or services or the monitoring of data subject behavior within the Union. Accordingly, all enterprises that are incorporated in an offshore jurisdictions that are dealing with personal data of individuals in the Union must comply with the regulation.
Offshore Company Services supports efficient entrepreneurship. The services we provide are tailored towards the needs of internationally orientated small business owners. To make your work in the European Union easy and straightforward, whilst ensuring regulatory compliance, our GDPR Software is there for you. The software package provide business owners and their respective data controllers and processors with a toolbox, information center, mission control, and where needed breach support. As such, cooperation and correspondence with the supervisory authorities is warranted.