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Offshore: The advantages are even greater if your new incorporation is offshore

Offshore: The advantage of offshore corp is mainly to save and protect your wealth. Whether it is an offshore company or an incorporation of a business in your country of residence.

Ok, I realize that I am not clear…so here goes.

Normally, your taxes are calculated on your income, wealth, and any ‘capital’ gains you have made over the tax year. This calculation is easy to do when everything is in your name or the joint names of you and another person e.g. your wife.

And if you have taken a loan, then the lender can take all your possessions if you don’t return the money on time.

Now, what about the advantage of offshore corp?

However, if your income was being received by an offshore corp instead of by you directly, then the calculation of how much you were earning becomes a bit muddled.

What if your house, car, furniture, and yacht were owned by an offshore corporation? Now the calculation of your wealth – what you own is a little obscure.

Many countries have lower tax rates and different methods for the valuation of shares – which you would now own in the incorporated company – instead of your wealth directly.

Also, anyone who has lent money – will now do so to your company. Not to you. And so will not be able to take your other assets except those that are owned by this company! That’s another advantage of offshore corp.

And that is how, when businesses go bankrupt, the shareholders only lose the value of their shares in that company, not everything they own.

Once you form tax saving offshore companies, there are additional levels of confidentiality also. You can nominate on your behalf, directors or even shareholders, who will do as you say so that your name does not appear on any documents filed with the offshore country’s government.

So not only does your tax calculations become beneficial, but you only need to let your family, friends or anyone else know what you own or earn – by your choice.

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An offshore International Business Corporation (IBC) saves and protects wealth because:

  • What you earn and what you own are not easily identifiable
  • Tax rates on shares of companies are often lower
  • If in an offshore company, even your ownership of the company’s shares is mostly – depending on the tax haven’s disclosure laws – confidential. So conceivably you may not be taxed on those assets – unless you chose to do so
  • Lastly, any lender to your incorporated company or any person who is suing your company can only take what is owned by the company. Not all your assets

The advantage of incorporation is big, even if you are a start-up incorporation. A registration offshore company has even more advantages if you:

  • Offer Professional Services
  • Trade
  • Own Investments
  • Want a Holding Company
  • Are Starting a Dot Com Business
  • Own Property
  • A Shipping Business
  • Are an Employment Company
  • Own Intellectual Property & Earn Royalty
  • Own Assets e.g. house, yacht, buildings, jewelry
  • Work Abroad

Visit other parts of this website and see how easy it is to incorporate an offshore company, or incorporating a small business in Dubai or even doing an incorporation online.

The advantage of Incorporation – So many that you won’t be able to resist!

The process of forming a new corporation is called incorporation. Of course, you have many questions!

  • Why does someone need to make his company a corporation?
  • Wouldn’t it increase the expenditures?
  • What is the advantage of incorporation?
  • Are there any disadvantages of incorporation?

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All over the world businessman and investors are forming companies for many reasons which include both legal and non-legal ones:

1. An investor’s personal assets are protected from lawsuits

This is one of the biggest advantages of incorporation. If you are running a business on your own or with other partners then in case of a lawsuit or bankruptcy if the courts feel that you were responsible and debts can’t be paid by liquidating the company’s assets, even your personal assets may be seized to cover them!

2. Tax Relaxation

Another very important advantage of incorporation is the tax relaxation that public limited companies get as compared to companies owned by individuals. Dividends from shares owned or capital gains from shares sold are taxed at lower rates in most countries.

3. Protection of your product or idea or brand

In present world where companies are known for their brand and their innovation, there is a greater need for their protection against copyright infringement.

Trademark incorporation is the solution for this problem as it gives all your ideas/products legal protection from being copied. Trademark incorporation is done when a corporation registers its original and unique name, product or ideas with the appropriate authority.

4. Raising Capital – Best way to expand your business

Short of capital? Have the passion to do a lot but don’t have the resources? Well, the best way is to incorporate your business and sell shares.

Though the company will not retain your personal property you can still have a majority of the shares and a much bigger capital for the expansion of your business!

Also since incorporation brings more people as stakeholders, you are no longer alone to worry about the success of the company.

5. Working abroad or planning to invest in foreign lands?

Get advantage of an offshore registration here as well!

Offshore asset protection gives you a tension free environment to work in since someone planning to file a lawsuit against you would think hard before doing it because of the distance and even if someone does there are many hindrances to it.

Last but not the least another advantage of incorporation is that the life of an incorporated company is much longer than that of a partnership or proprietorship company because its life does not depend on you or your partners. The legend of the company continues, even in your absence!

Get a checklist of updated documents, easy reminders, and many more. HABOT takes care of your important documents. Sign up now!

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Offshore was last modified: July 7th, 2022 by Manu Raj

Manu Raj

Has a positive attitude towards the job, is friendly and a team player.

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