Reasons and Benefits for Offshore
Companies

In our years of experience, we have seen all types of offshore companies being formed. From individuals to multi-national corporations, there are as many reasons to incorporate offshore as there are offshore corporations.

Reasons

Portfolio management - many corporations use offshore jurisdictions as a way to manage employee pensions and benefits. The privacy and tax advantages afforded to offshore corporations provide ample financial opportunities not available in their home country.

Asset consolidation: If one’s investment portfolio, business transactions or other bank accounts are spread worldwide, an offshore company can provide a useful way to centralize assets while benefiting from offshore tax structures.

Taxation: The sharp increase in homeland legislation continues to batter corporations. Profits need to be ever greater, and the employee ranks ever smaller, in order for companies to consistently perform for their investors. Offshore jurisdictions offer low- and no-tax structures that help improve a company’s bottom line.

Financial planning
Families who have accumulated wealth sometimes choose to form an offshore corporation in order to properly manage and protect their assets. A family-run offshore company can establish trusts (LINK) in order to declare their wishes regarding inheritance distribution to their heirs and to avoid paying punishing estate taxes. Also, transferring personally owned assets to an offshore company can minimize the amount of taxes paid, as well as protect those assets from lawsuit settlements. Finally, the handling of probate after one’s passing can be streamlined if worldwide assets are consolidated into one offshore company.

Trading
Import/export businesses take advantage of establishing their company in an offshore jurisdiction in order to benefit from reasonable tax rates, to consolidate reporting and invoicing, to solve VAT issues and to allow for smoother transactions involving different currencies.


Benefits

Confidentiality - Offshore jurisdictions are fiercely proud of their commitment to privacy. To this end, there are a variety of ways an offshore corporation can be shielded, from blind trusts to third party administration. There are also innovative technological advances in place to keep out prying eyes, and extreme flexibility in how, when and where a company corresponds with its offshore location.

Asset protection - Through offshore incorporation, you can consolidate your worldwide wealth and protect your assets from creditors, lawsuit judgments, estate taxes and other interests. This is especially beneficial to those in professions that are the focus of litigation - doctors, product manufacturers, and the like.

Global access - Incorporating in an offshore jurisdiction affords you the ability to invest in, conduct transactions with and protect other foreign corporations.

Depending on your industry, your financial goals and the size and type of the assets you hold, incorporating in an offshore jurisdiction could prove to be the best investment decision you’ve ever made. To find out more about how an offshore corporation can assist you in your wealth management, please do not hesitate to contact us at your earliest convenience. We look forward to becoming your trusted offshore advisors.