How can an offshore company be used

There are many types of offshore company structures - for more information, click here  - and there are even more uses for those companies. Let’s take a look at how offshore companies help individuals and organizations conduct business and properly manage their wealth.

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 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.

Intellectual property
By establishing a separate company in an offshore jurisdiction to handle the licensing agreements for copyrighted, patented, trademarked or otherwise registered intellectual property can allow the fees ad royalties to be paid to the onshore parent company.

Internet entrepreneurship
There recently has been a tremendous amount of legislation in the EU and the U.S. regarding VAT and other taxes paid for sales and income in those regions. However, by establishing your Internet trading company in a offshore jurisdiction, you’ll have a billing address which exempts you from paying those taxes.

Investing
In many circumstances, the owner of an investment firm with a lot of activity will want to keep proprietary information as well as financial data away from competitors’ prying eyes. Also, establishing an investment firm in an offshore location allows for significant tax advantages, regardless of where the actual investing is taking place.

Marine vessel sales, administration, management
Registering and flying the flag of an offshore jurisdiction can be advantageous for yacht, mega-yacht and ship owners in terms of significant tax advantages for income, employee wages and maintenance fees, as well as streamlining inspection and compliance.

Personal services
Many professionals offer a wide range of services to clientele worldwide. This means that their income can be derived from a number of locations and sometimes many different currencies. By establishing an offshore company for their business - whether it be consulting, financial planning, security or having to do with the arts - payment and billing issues, tax issues, residency issues and reporting issues can all be solved.

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.

As you can see, offshore companies are extremely flexible and can accommodate practically any current financial circumstance or future financial goal. If you’re looking to learn more about how incorporating a company offshore can help your bottom line, please do not hesitate to contact us  today. We’re happy to give you sound advice and also choose the offshore jurisdiction that is right for you.