OFFSHORE COMPANY
 

An offshore company is a legal person created outside one's country of residence. Offshore companies are formed for several reasons, such as:

 

  • Privacy

  • Asset Protection

  • Tax Savings

  • Lawsuit Protection

  • Flexible Business Laws

  • Confidentiality


 

The type of offshore company you choose, has the same process of choosing the jurisdiction where to set it up. The most popular Offshore Financial Centers offer Corporations and Limited Liability Companies, among others. The offshore company, along with another legal tool or bank account work very good depending on the offshore plans.

Offshore companies offer much more financial privacy than domestic companies. Currently, many offshore jurisdictions have favorable laws in the US.

 

Investment Vehicle:

Offshore companies are also used as investment vehicle. The funds own by it, may be invested anywhere in the world. Since many jurisdictions do not levy capital gains tax and it is possible to purchase tax free bonds or benefits from bank deposits where gross interest is paid.

 

Property Ownership:

Offshore companies can also own properties. They can own properties anywhere in the world, avoiding income tax, capital gains tax and inheritance tax. Instead of selling the property, the shares are transferred to the offshore company rather than pursuing transfer of the property itself. This reduces the property purchase costs for the buyer and the seller.

 

Offshore Trading Companies:

Companies that carry out international trade activities, such as import or export can use offshore companies to take orders but arrange the delivery, from the manufacture or purchase point. Of course the profit of this transaction, as accumulated through the offshore company, levies low or no tax.

 

Employment Company:

Professional who offer their services, and receive substantial fees may establish an offshore employment company to which they may assign the right, or contract with an offshore company the right, to receive those fees. Of course, in a tax-free jurisdiction the offshore employment company may not require to pay tax on profit. Payments done to the service providers, will carry on tax according to the laws of their country of residence but they can be structured in such a way to minimize tax liabilities.



If you have questions about how to set up an offshore company please contact us.