But when do you need an offshore company and what benefits does offshore company formation bring?
Although offshore investing is often criticized and the media mostly depicts offshore businesses as a way to evade taxes and hide money from the government through some illegal company located on an obscure offshore jurisdiction where the tax rate is almost inexistentmost offshore companies are 100% legitimate. Offshore investing may offer you a number of benefits that you can take advantage of throughoffshore company formation plans.
Although tax reduction is the first and foremost advantage that comes to mind when considering offshore companies, increasing confidentiality is also a very attractive benefit.
We have put together a list of key advantages of offshore company formation.
Registering an offshore company can reduce the tax obligations of a business and this is usually the main reason for incorporating a business offshore. A tax exempt in an offshore country is designed to promote a healthy investment environment and to attract foreign investors in order to increase the economic activity.
When incorporating an offshore company there are usually tax exemptions in the country of incorporation or the new formed company will have to pay an almost inexistent or nil effective rate of taxation. This may result in a reduction, delay or even complete elimination of the tax burden on the company or it will at least help you avoid the double taxation of the same income.
Placing assets into offshore companies and legal structures can offer a strong layer of protection from future liabilities. You can transfer the ownership of your assets to be controlled by offshore entities protecting them against malpractice, possible claims, or unsettled divorces. Corporations use offshore structures to protect assets against creditors, product liability, etc.or utilize these types of companies for holding assets such as intellectual property or real estate investments.
Many offshore jurisdictions offer the benefit of secrecy legislation; they have enacted laws establishing strict corporate and banking confidentiality. In some jurisdictions records of directors and shareholders are not publicly accessible; ensuring the confidentiality on the personal details of the directors and shareholders. By setting up offshore companies and titling assets to the company, they will no longer be tied to your name and you your assets will be shielded from legal opponent by simply incorporating offshore. If this confidentiality is breached, there are severe consequences for the affronted party.
The legal responsibilities of any directors, shareholders and officers of an offshore company are usually limited. An offshore company takes advantage of more adaptable regulations in terms of accounting requirements or public filings. The requirement for staff or a physical office can be substituted with cost-effective virtual office services allowing your company to save both time and money.
Low Capital Requirements
Offshore companies usually require less than what is required for an onshore registration. Registration of an offshore company will also present more flexibility regarding to the structuring of the capital of the company. Relocating your existing business overseas is an important step toward expanding your company and your assets. Whether you are seeking asset protection, confidentiality, privacy, tax savings there is a certain jurisdiction that matches your specific needs. Starting Offshore can help you determine the right jurisdiction to form your company, based on your specific requirements.