There are many benefits with setting up offshore company, such as lowering taxes, asset protection and privacy for example. But this are not the only benefits. In fact there are many benefits why businesses should consider setting up an offshore company.
Offshore company can be valuable as a vehicle to hold assets. It provides some of the best asset protection. Some of this assets include real estates, gold, brokerage account, intellectual property rights, such as copyright and trademarks…
This one is a no-brainer. Often businesses register offshore company as a primary reason to reduce taxes. Many jurisdictions offer tax exempt or very low taxes for non resident companies. Make sure to get an expert in this matters on board, as doing taxes offshore might get very complicated. When structured properly, your offshore company can legally pay zero taxes, while comply and follow applicable laws.
Some jurisdictions are not required to publish financial information or the names of directors and shareholders. In fact most offshore jurisdictions will keep this information private, as long as there is no criminal prosecution. There is a great financial privacy.
Legal obligations of executives of an offshore company are lower than onshore. Also the need for employees or a physical office can be avoided with virtual office services. This reduce costs and time. Reporting is also simple, in most cases you will need only to make a payment of a flat annual rate, or provide a simple declaration. There is no need for filing financial records annually.
Lower setup and maintenance costs
Setting up an offshore company can be fast and simple. Also, maintaining an offshore company can be very cost effective and simple.
Lower capital requirement
Some jurisdictions offer no capital required for registration and other jurisdictions offer minimal amount, most often much less than an onshore.
Putting assets into an offshore company and legal structures offer strong protection from future liabilities. If a legal opponent is pursuing suit, they will do asset search. Having assets on your name, they can be easily tracked down and located. But in offshore company they are no longer tied to your name, making it hard for legal opponent, judges and courts to track down and to award assets in judgment.
Laws in offshore jurisdictions are designed to maximize offshore company benefits. Thus, many things are flexible in terms of structure and its capital, meeting locations, number of executives and their location, requirements to hold annual meetings…
Some other benefits include, free remittance of profits and capital, customs and duty exemptions, government cooperation, fewer restrictions, exchange convertibility, territorial taxation on international earnings, sanctity of contracts, confirmed authorized techniques, greater yields and returns…
Registering offshore company can provide your business with many benefits, minimize taxes, provide anonymity and protect assets. It is important to get experienced professional on board to choose best possible jurisdiction for your specific business and not to run into trouble with tax authorities in your home country.