Offshore Company

Offshore Company & Global Potential

Starting an offshore company in an overseas jurisdiciton gives you many advantages and possibilities that can not be found if you incorporate onshore.

Offshore incorporation is something that gives you:

• Tax advantages
• Lower regulations
• More privacy
• Asset security
• Low paid in capital
• Minimal reporting obligations
• Investor friendly atmosphere

None of these advantages are readily available in an onshore financial environment that generally have more rest tape and regulations making it more difficult for businesses to operate. High tax jurisdictions 

Questions You Should Ask Yourself Before You Incorporate Offshore

Before choosing where to incorporate your company there are a few questions that might be worth asking:

• What am I hoping to achieve by going offshore?
• What are my tax obligations where I currently reside?
• Are there any Double Taxation Treaties?
• Are there any special licences that I need to apply for?
• Do I need a merchant service or an offshore account?
• Do I need account and financial privacy?

Your anser to these questions will help determine where in the world you should incorporate.

What is an Offshore Company?

An offshore company is a company that is registered in a jurisdiction with its operations conducted outside the nations borders. It is an entity that is located in outside the jurisdiction whereby the structure exists outside the tax boundary of the nation state. 

The entity usually is restricted from conducting any business within the country thereby making it a non-resident company.

What are Offshore Companies Used for?

Offshore companies have many uses and can be structures so as to fit many different many different types of situations and circumstances. Here are just a few of the uses:

• Global trading
• Holding an account
• International services
• Intellectual property
• Physical property

Do Offshore Companies Have to Pay Any Taxes?

All offshore companies do not have to pay any taxation though it is completely dependant upon the country where you incorporate, however most true offshore tax havens have no taxation including:

• corporate tax
• divided tax
• capital gains tax
• withholding tax

There are other type of offshore jurisdictions that are defined as low tax countries, that imposes minimal taxation rather than zero taxation and are often times preferred because the generally are in more respected jurisdicitons.

What are Some Disadvantages of Having an Offshore Company?

• Some tax havens do not generally have a good reputation
• Can be more difficult to open a corporate bank account
• Canbe more difficult to establish merchant accounts

What are the Different Type of Offshore Companies?

There are many different corporate structures that can all be broadly labeled as offshore companies, they include 

• non-resident companies
• international business companies
• hybrid companies
• zero tax companies

Changes in the offshore company market

The last 10 years since 2010, there have haven many changes in the offshore formation market largely in part to the OECD regulations that have reuiqred member countries to impotent Comoon Reprottin Startard reuquiremnets (CRS). Signatories of the agreement automatically share information of non resident 

Concluding Remarks

There are many different place in the world where you can incorporate an offshore company. Depending upon whats right for you will determine the best location. Get in touch to see what works for you.