Offshore Company is then a company incorporated outside the country of its main business activities and/or the place of residence of its principals, namely directors, shareholders and beneficial owners. Again, this is usually done to attain certain legal, financial or tax benefits. As most other companies, an offshore company may enter into contracts, purchase property, goods and services, open bank accounts, etc.
An offshore corporation is a term that generally refers to a company incorporated under special legislation in one of the world's offshore financial centres. Offshore corporate legislation normally targets non-residents and permits them to form, own and operate companies that have broad powers, are easy to administer and, above all, are subject to minimal or even zero taxation.
Establishing an offshore company can be of great help in reducing the tax burden of a company. Consequently, the routine operations of the company are also simplified & a great amount of time & energy that is usually required for filing of records & account auditing, is also saved. This automatically helps you to cut down the overhead costs & offers you additional time & energy to look into other vital elements of your business.
Thus, for every business looking for ways to lessen their taxation burden, the best & safest option is to setup an offshore company. A similar kind of tax shelter is provided by the offshore banking. However, irrespective of whether you choose to setup an offshore company or bank offshore, take care to receive professional aid so that the legal procedures of the respective jurisdiction can be carried out smoothly.
Benefits of setting up an Offshore Company
Registering an offshore company can legally minimise the tax obligations of a business and this is often the primary reason for incorporating a business offshore. Non-resident companies are often tax exempt or enjoy low levels of taxation depending upon the country. However, corporate taxation matters can become very complicated and it is very important to be guided by an experienced professional. Ensuring that there is no conflict with the tax obligations in the country or jurisdictions where the business operates is essential.
Non-resident companies, in some countries, are not required to publish financial information or the details of directors and shareholders. Most offshore financial jurisdictions will not reveal any of this information to any third party unless criminal or terrorist activities are suspected.
The legal obligations of any directors or officers of an offshore company are often much less. The need for accounting, other staff or a physical office can also be overcome with cost-effective virtual office services - saving time and money.
For those with international business interests, an offshore company can be valuable as a vehicle for holding assets such as intellectual property or real estate investments.
Lower set up and maintenance costs
Even with increasing anti money-laundering measures being applied and enforced to block funding for terrorism and prevent the proceeds of criminal activities from being hidden, the process of setting up an offshore company can be relatively fast and simple. This can translate into lower costs in both the establishment and maintenance of an offshore company.
Lower capital requirement
Registering an offshore company will require minimal capital, usually less than what is required for an onshore registration. In certain jurisdictions there is in fact no capital needed for registration.
Setting up an offshore company does not have to be complicated and can provide many benefits for individuals or companies involved in business across international borders.
Infinity has strong relationships with long-established and experienced international advisers giving us the ability to set up offshore registration for businesses in a variety of secure jurisdictions. To discuss the benefits of setting up an offshore company in, more detail, contact us today.