Offshore Companies | An Established Way To Guard Your Wealth
Offshore companies: Offshore company introduction, 5 advantages, and the reasons to use offshore companies
Offshore companies: You will find here the top five reasons that lead businessmen to register an offshore company to manage their businesses and personal holdings. Many businessmen choose to incorporate an offshore company because they reduce their tax burden drastically and require a small amount of money.
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In most jurisdictions, offshore company formation requires far less expense, time and hassle than locally opened ones. However, the crowning feature is confidentiality. You will, of course, need the right registration agent to offer assistance with these features.
Offshore companies have been around for decades. The concept of registering companies offshore began with the registration of ships.
Over the last few decades, the concept has been gradually applied successfully to almost all categories of businesses and assets.
The principle behind an offshore company is that it is an entity that exists in a jurisdiction outside the area of its business. The term “offshore” applies thus.
An offshore company is also called an International Business Company (IBC). Being incorporated in a jurisdiction with no or very low-income taxes is the principal advantage of these structures.
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Offshore companies: Get a free quote now by filling in the box on the right and get an established way to guard your wealth
Offshore companies: 5 advantages
1. Zero or low taxation
Most of the jurisdictions which register offshore company do not require the companies to pay taxes locally, unlike the United States. Hence you can conduct your major programs and investments thru an offshore “vehicle” – an entity registered offshore.
The capital gains and income that accrue in these offshore companies are free of taxes in most international jurisdictions that invite you to form an offshore company.
2. Low capital requirement
Offshore companies normally do not need to be paid up capital of more than 1 USD to become incorporated. This information comes in very handy when multiple companies need to be formed to structure a deal or for holding a business empire.
3. Low cost of formation
Offshore companies are almost always cheaper to form than a locally licensed business. The cost to be registered and the renewal fees you pay can cost as little as US$ 3000 and US$ 2000 respectively.
Again this feature affords big savings when a businessman or investor needs to form a company for a limited period of time and purpose to complete a deal.
A separate company for each asset or a transaction is affordable even if the companies need to be liquidated once the deal is completed.
Offshore companies: Get a free quote now by filling in the box on the right and get an established way to guard your wealth
4. Ease of formation and liquidation
Documentation needed to form offshore company is simple and quick. You need:
- A passport copy authenticated by a Notary Public
- Proof of physical address
- A banker’s reference letter
These are generally enough to register a company for you as an individual shareholder.
A registered agent is authorized by the jurisdiction to submit the papers and get your company registered typically in a week or less. Furthermore, it is also quicker and easier to dissolve your offshore company than ending your local business ventures.
Regulations vary on this aspect from jurisdiction to jurisdiction, however, it is common to pass a board of directors resolution and submit it to the government authorities to end a company. Some jurisdictions may have more elaborate systems.
5. Confidentiality
Secrecy is the idea behind an offshore company. Many jurisdictions, even today, refuse to reveal the details of ownership of the companies registered by them unless tax evasion or criminal activity is suspected or money laundering is evident.
Legitimate business deals executed through an offshore company are protected by the authorities. It is a criminal offense for the employees of the authorities to give away any information on the offshore companies registered through them.
Offshore companies also facilitate the addition of another layer of secrecy.
The shareholders can be your nominees. Very often these nominees are other offshore company. Your operations are protected by executing a nominee agreement between the service provider and you- the real owner.
You can also get a power of attorney from the nominees to run the offshore companies you own. This can be designed to look like on paper that you do not own the company but the control is yours.
Offshore companies: Get a free quote now by filling in the box on the right and get an established way to guard your wealth
Uses
These are the reasons businessmen like you have come to use offshore companies.
- You can use them as holding companies
- You can also use them to execute special agreements, special transactions, and deals
- You can register your patents and other intellectual property in the name of offshore entities
- You can make special structures around them to buy businesses
- You can do normal global trade transactions with them. If you are an internet marketer receiving money from all over the world then your online business can be owned by an offshore company
As a professional, you can route your fees through them. The offshore company has become the ubiquitous tool in many a businessman’s kits, especially when there are foreign suppliers, customers and investors involved.
No wonder they are one of the fastest growing business entities.
Proper planning with a savvy consultant about offshore company products is a great start for people looking for resources to shelter profits from high taxation.
Offshore companies: Get a free quote now by filling in the box on the right and get an established way to guard your wealth
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