In previous years, the average business owner or investor knew little or nothing about offshore incorporation. With the advent of the internet and other information sources, times have changed. No longer is it only for the very wealthy and other international business entrepreneurs, but the advantages of offshore incorporation are being used by many. Utilizing offshore incorporation features, you can plan your business tax burden as well as protect yourself in case of personal problems or some national catastrophe. Going offshore can be an excellent way to protect your personal and financial privacy, and your future well-being. You also need to be aware that offshore banking and asset protection strategies are completely legal, and makes good business sense.
By using an offshore incorporation vehicle, you can become judgment-proof, as the world-wide courts are not recognized in most offshore jurisdictions; and just as important, tax-free, as there are no taxes assessed on offshore trusts or International Business Companies formed in offshore jurisdictions. Many offshore jurisdictions also do not tax income earned outside of their jurisdiction.
A properly structured offshore incorporation can be an excellent, tax-efficient corporate vehicle through which international business can be conducted, as well as total privacy and asset protection.
Most offshore incorporation jurisdictions promote client confidentiality. Shareholders’ and directors’ details remain private – offshore incorporation jurisdictions tend to have strong corporate and banking secrecy laws; however, be advised that some tax havens have changed. They are reportedly responding to pressure from the Organization for Economic Cooperation and Development (OECD) to exchange confidential information about corporations and bank accounts. This is particularly true in the Bahamas and other English controlled areas where recent legislation and modified agreements have taken away client confidentiality. This tends to negate many benefits of an offshore incorporation there.
There are, however, some jurisdictions, primarily in Asia, who are refusing to cooperate with the OECD requests to exchange information. Singapore and Hong Kong, are well established, reputable jurisdictions, who have nicely growing economies and also offer good potential for investors. Offshore incorporation in these areas remains especially attractive. If you deal in a business that is inundated with problems and reporting requirements under your domestic jurisdiction, then offshore incorporation under a favorable jurisdiction such as these can be what you are looking for.
The purposes for an offshore incorporation is often for anonymity, no or limited liability, high tax exemptions as well as increased revenue benefits, such as no taxes, and asset protection.
Setting up an offshore incorporation for your company in a low or no tax jurisdiction, you could potentially save yourself substantial amounts of money legally. Most often, the rules are that if the company incorporated in a particular jurisdiction doesn’t derive income from the local economy, it can virtually, and legally, operate tax free.
Offshore Incorporation offers privacy, increased profits and prestige in the eyes of many. In today’s society we’re concerned with litigious attorneys, employers, disgruntled employees, ex-spouses, ex-business partners, and the IRS and others invading our privacy. How would you like to have bank accounts with total confidentiality from the above intruders? How would you like to have the option of investing in high-yielding securities and other strategies that an offshore incorporation offers that aren’t available at home? With an offshore incorporation, you can have the prestige and credibility of being the founder or officer of your own international company! In addition, you can expand your business and offer your products or services to a worldwide marketplace, while at the same time, maintaining your privacy and asset protection.
In summary, there are many benefits in choosing offshore incorporation. Protecting your privacy from the prying eyes of governmental agencies – especially in the area of online information, legally limiting or eliminating the amount of taxes you pay on your online income, and protecting your business against lawsuits are just a few of the ways an offshore incorporation or IBC can benefit you. We cannot emphasize enough…seek professional legal and accounting assistance and be certain that an offshore incorporation is right for your situation. Be sure to deal with a reputable and knowledgeable firm who has an established track record, and who can satisfy your needs for establishing an offshore incorporation. If everything is properly planned and executed, doing an offshore incorporation should be comparable in cost and time as to forming a domestic corporation in your resident state. Ask the right questions, and don’t base your decision solely on cost for an offshore incorporation.