The offshore industry has been capturing the market at a rapid speed and has been a strong competitor to the onshore sector.
Business investors who were investing in onshore business activities now prefer to invest in offshore businesses due to the benefits that the tax-haven jurisdictions offer.
Now, when it comes to offshore investment, there are multiple routes of investment, and one among them is investing in an offshore foundation.
A foundation company is a legal business entity that is widely opted by the business owners to set up in an offshore jurisdiction. Are you wondering why?
Well, the answer is tax saving. Yes!
Now, are you wondering how?
Well, the mechanism is as follows:
Any company is established to earn revenue and generate profits. The core task of a foundation company is to own such a company, which would provide a double benefit of asset protection along with tax exemption.
This guide highlights the different options available for the business investors to invest in an offshore foundation.
- Private Foundation
The first option is to proceed ahead with a private foundation, that can be stated as a non-governmental, non-profit organization that is usually managed by the fund’s trustees or directors. It is to be noted that a private foundation doesn’t request funds from the public.
Today most of the offshore business investors and owners prefer to proceed with the incorporation of a private foundation as it allows them to enjoy numerous tax benefits, as mentioned above. A private foundation company is also useful in managing business assets in the best possible way.
- Corporate Foundation
The next move is to proceed with the establishment of a corporate foundation company in a tax-haven jurisdiction, which is mostly established with the intent of corporate continuity, pension, or employee benefit schemes.
In simple terms, a corporate foundation can be understood as a private foundation that is controlled and funded by a corporation (mostly by a single corporation) or a public charity.
- Charitable Foundation
It can be called a non-profit organization, is a legal entity that gets established to provide funding to other charitable organizations or get involved in charitable activities. Most of the business investors prefer to proceed with the charitable foundation as it boosts their reputation and also allows the investors to enjoy tax benefits.
For more information regarding the tax benefits, have a look at our latest guide on What are the tax advantages of starting an offshore business.
- Special Purpose Foundations
This is another dimension serving a specific purpose, which is dedicated to a particular field of interest. Thus, holding a narrow focus in the lot of interest, these organizations turn out to be a good source of state-of-the-art information in their specific areas.
Thus, you have got a complete picture of the different types of business foundations that can be incorporated in the popular offshore jurisdictions.
Now, while proceeding ahead for the establishment process, one needs to make sure that the legal proceedings are carried out in an error-free manner.
To deal with the legal proceedings, it is recommended to take the help of business advisors who can take care of the necessities and help you to deal with the same in a hassle-free manner. To know more about how an offshore consultant can help you to deal with the same, here’s a guide on the Core Reasons of Hiring an Offshore Business Consultant, which is a must-read for business investors planning to invest in any kind of offshore business.
Business Setup Worldwide has been standing as one of the top ten business consultant sin Dubai who has helped numerous business investors to establish their business.
Dealing with the incorporation process of an offshore company is one of our KPI, and our expert business advisors are well-versed with the process.
In case if you are looking forward to setting up your offshore trust in an offshore jurisdiction, feel free to have a word with our advisors.
To know the next steps, contact us today-we’d be glad to assist!
