About Offshore Companies

An offshore business or company functions in the same way that “onshore” or resident-owned companies do, with the exception that they are founded in a certain location in order to take advantage of low- or no-tax opportunities. Other reasons for incorporating in an offshore jurisdiction is to protect one’s assets, to be assured of banking privacy, or to manage wealth in the international market.

While there are several jurisdictions - Hong Kong and Mauritius, for example - that use particular language when speaking of offshore entities, in general there are two kinds of companies that can be incorporated offshore:

Limited Liability Partnership (LLP) - A business in which everyone who invests has the authority to manage the company.

Limited Liability Company (LLC) - Investors can choose to be involved in the company’s management, or they can name specific individuals as managers to act o their behalf.

There are other nuances that separate these two structure types, and which one you choose depends not only on how you’d like to run your company, but in which jurisdiction you’d like to run it. For more information on which offshore company structure would be right for you, please don’t hesitate to contact us today.