If you are thinking of starting up a new enterprise, you should consider the option of establishing it as an Offshore Company. An offshore company has certain benefits that regular companies are not afforded, for example; Tax, Privacy, Banking, Asset Protection and Ease of Formation.
It is therefore important to take note and fully understand these advantages before deciding which potential route is the most suitable for you and your business needs.
Advantages Of Setting Up An Offshore Company
Most offshore companies, depending upon their geographic jurisdiction, are exempt from paying any taxes. This would include; personal income tax, capital gains tax, inheritance tax and company corporation taxes.
Generally speaking, an offshore company is not obligated to publish any historical financial information, details of its directors or shareholders. This allows a company to conduct its business with autonomy and anonymity.
Third parties have no power or authority to oversee or influence an offshore companies operations. The exception to this rule however, is when a companies business operations are suspected of criminal or terrorist activities.
If a company trades internationally, it it safe to assume that invoices and receipt of goods & services will require the ability to pay and receive funds in many different currencies. An offshore bank will often offer a wide range of foreign exchange banking facilities that will enable its customers to operate almost anywhere in the world.
An offshore company, like any business, can hold assets such as; real estate, intellectual property, securities and other valuable assets no matter where that asset is located in the world.
Given the fact that the ownership of an offshore company can be completely anonymous, company directors and shareholders have the ability to protect their personal wealth from third parties, creditors and potential law suits.
Ease of Formation
Incorporating an offshore company could not be easier. It can take as little as 24hrs and in most cases, there is no minimum capital requirement. One director and one shareholder is obligatory for most offshore company incorporation’s without there being any restriction on the citizenship of any such director or shareholder. Often times, only a virtual office and postal address is required, without the need or cost of a physical one.