An offshore company is incorporated in a foreign country where none of the owners is a resident. Offshore business processes are facilitated in several locations around the world and, when investors open an offshore company, a common form of this purpose, they will not be allowed to trade locally in that jurisdiction.
Starting an offshore company in any popular offshore jurisdiction haven doesn’t constitute tax evasion or money laundering. It is –
- Completely legal
- A common practice among the most prominent companies
- Much cheaper
- Quick and simple process
Offshore companies are mostly used by entities and individuals for tax avoidance, maintaining a corporate bank account, invoicing international clients, anonymity, and asset protection. It is also used to put upholding structure to your corporate by holding shares in another firm locally and internationally. The offshore business does not provide any visa or require any office space.
Here are the reasons why offshore company setup registration can be beneficial business-wise.
One of the essential benefits of offshore business setup is that they are generally tax neutral, as in they are often tax-exempt in a country of formation or they pay a little or nil effective rate of taxation when used as a holding firm receiving dividend income for instance. If structured properly, this may result in a reduction, delay, or even complete elimination of the tax burden.
Just like tax optimization, this is also one of the main reasons why investors choose forming an offshore company. The placing of an asset in an offshore country and overseas legal structures can provide a secure layer of protection from future liabilities. Offshore jurisdictions provide highly effective asset protection and effectively screen your finances from public view.
3.Low Capital Needed
Offshore companies are flexible in terms of the structuring of the capital of the entity. This often includes very low minimum paid-up capital requirement.
Whenever you decide to start an offshore business in any of the foreign tax havens remember that your privacy is completely protected. While registering the company, all the information that is provided by you in the form of MOA, documents, etc. are kept confidential unless you decide to reveal them.
Forming an offshore business and having assets held by the overseas company means they are no longer associated with your name. If a legal opponent is pursuing legal action against you, it typically involves an asset search to make sure there will be money to pay out, in the event a judgment is awarded against you.
One often overlooked offshore company benefit is the relative simplicity of the establishing an offshore company and after that maintaining it. Offshore company incorporation in many jurisdictions is a quick and seamless process, and at Business Setup Worldwide we aim to make this process as simple as possible.
Aforementioned are just six of many benefits a small business can get by incorporating an offshore company in a tax haven.
Here are few of the famous offshore jurisdictions to set up your business. They are –
- The British Virgin Islands
- Cayman Islands
- Hong Kong
- The Republic of Ireland
We at Business Setup Worldwide and our team are on hand to assist you with the business setup process. Our other services include business incorporation, bank account opening, accounting and bookkeeping services, and many more. To know more contact us today.