As the name suggests, an offshore business is one that is established outside the country where it is registered. For better or worse, people are now becoming more aware of the world of offshore. In general, an offshore company is the one that is incorporated in a different country from the country of residence of the shareholders, and it is usually meant not to do any economic activities in that particular country.
Offshore companies are also known as –
- Non-resident companies
- International Business Companies (IBC), and
- Exempt companies
Best Jurisdictions to Start an Offshore Company?
There are quite a several offshore countries where you can set up your business. Some of the things to be considered before incorporating includes residency situation, your business and banking needs. The most popular offshore jurisdictions are mentioned as under –
- Hong Kong – One of the things that make Hong Kong attractive for starting an offshore company is their favourable taxation regime. One can trade internationally without paying any local taxes; the only condition is that one should not have a basis of income from Hong Kong
- Cayman Islands – Cayman is a popular place that is known to offer a convenient offshore business environment. The location is especially famous for investments and large fund formations. The Cayman Islands are currently the most significant offshore banking centres.
- The Bahamas – In the Bahamas, there are two essential things that one can take advantage of, investor’s confidentiality and taxation. One can set up an offshore company for a variety of purposes which includes tax reduction, estate planning, and asset protection, among others. The companies are also exempt from income tax and can be incorporated with one shareholder.
An offshore business can be beneficial in many ways if set up in the right country. It is essential to pay attention to details when coming up with your selection as not all jurisdictions will allow you to open for bank accounts and you need to ensure you practice proper tax planning for your regional as well as the foreign jurisdictions.
Business Setup Worldwide provides services of setting up an offshore company. Should you decide to start one, contact us, we’d be glad to assist you.