5 Reasons to Set Up an Offshore Trust Company

Offshore Trust Company

The establishment of a trust company has been exceptionally spiking among global investors, which is turning out to be a profitable move day by day.

A trust company can be stated as a corporate legal entity that acts as a fiduciary or as an agent or trustee on behalf of other persons or other business entities.

The core functionality of a trusted company is to act as a catalyst that allows a third party or any trustee to hold assets for the benefit of a third party (beneficiaries). Business owners prefer to proceed to set up offshore trusts for the following reasons:

1. High-end Confidentiality

Trusts are well-known to provide high-end confidentiality and privacy, as they don’t go through probate.

Offshore company formation deals with non-disclosure of documents. Thus, business owners prefer to set up an offshore trust company in a tax-haven jurisdiction because they provide high-end secrecy and confidentiality. Complete information regarding the assets is detailed in the trust deed, along with relevant conditions.

2. High-end Asset Protection

Asset protection is another major driving force that provokes business owners to proceed with the incorporation of offshore trusts. Most business owners prefer to proceed ahead with an irrevocable trust when it comes to protecting their assets. 

3. Multiple Tax Exemption

Another critical reason to establish offshore trusts is to get a complete tax exemption. This is another form of offshore company registration. Speaking frankly, it may not eliminate your entire tax burden, but it can alleviate it in numerous ways.

Popular offshore jurisdictions offer multiple tax benefits to business investors and owners so that they can set up offshore companies and complete their operations hassle-free. For example, Seychelles trust company is one of the jurisdictions where people tend to open one. 

4. Succession Planning

Every investor plans to save wealth and assets for future generations, and if you are the one looking for the same, then you can count on an offshore company setup. Offshore trust company can be one form of asset protection. 

Even if you consider investing in real estate planning, there is nothing more significant than trusts.

5. Avoid Probate

One of the core reasons for incorporating a trust is to avoid any kind of probate, which would lead to substantial savings in time and legal proceedings. This means if you hold assets that are to be distributed according to the prepared will, probate will is the way through which a judge decides the will’s validity.

Best Jurisdictions to Set Up Offshore Trust Company

To proceed forward towards the establishment of an offshore trust in the popular offshore jurisdictions, you can consider the following list:

Thus, you have a clear idea regarding the core drivers that provoke business professionals, investors, and owners to go forward towards the incorporation of an offshore trust.

Now, the next step is taking the initiative towards the formation of trust and implementing it. While doing so, it is essential to note that proceeding with an expert’s advice turns out to be a good move as they hold in-depth knowledge regarding the legal proceedings that need to be carried out accordingly.

Business Setup Worldwide, one of the top ten business consultants, understands the business establishment ground well.

Thus, our business advisors take the initiative to provide the best business incorporation solutions both onshore and offshore company.

If you are looking forward to setting up your trust company in any of the popular offshore jurisdictions, feel free to have a word with our experts.

Contact us today; we’d be glad to assist!

FAQs

1. How are taxes affected by offshore trusts?

The tax implications of offshore trusts depend on the laws of both the offshore jurisdiction and the settlor's home country. Some jurisdictions offer favourable tax conditions, while others may have reporting requirements.

2. Is an offshore trust the same as tax evasion?

No, an offshore trust is a legal financial planning tool. However, if it is used to evade taxes or hide assets illegally, it becomes unlawful. It is crucial to comply with tax regulations in both the offshore jurisdiction and the settlor's home country.

3. Can I retain control over assets in an offshore trust?

The level of control a settlor retains over trust assets can vary based on the trust's structure. Some trusts may allow the settlor to retain certain powers, while others may involve relinquishing control to the trustee.