An overseas company has a range of uses and advantages for clients who engage in anything from international trade and financial investing to service-based digital companies and eCommerce stores. Each jurisdiction has its own unique benefits and advantages that have become popular for within certain industries.
For instance, Cayman Islands is the world capital for offshore funds and banking, whereas Nevis is popular for LLCs and Cook Islands for foreign trusts. As a result, the benefits of going offshore will largely depends on where you are forming a company offshore, though they all will generally have the following features and advantages.
Benefits of Forming an Offshore Company
Registration and incorporation procedures are simple and, can sometimes take only 24 – 48hrs for the procedure
There are low associated fees. After start-up expenses; many jurisdictions charges between USD 200-300 annually.
Minimal Reporting Requirements
Financial reporting, account info and annual returns are often not required.
Allows for a flexibly internal structure, usually just 1 shareholder (which can often be the director) often no company secretary, or auditing.
No Forex Controls
Most all jurisdictions have no constraints on foreign exchange.
Beneficial Local Corporate Legislation
Numerous offshore jurisdictions have supportive legal frameworks to promote and motivate the development of the overseas market and foreign investment, which supports and offers companies a high degree of flexibility.
The information of owners and account stay confidential. However depending upon your country of residence, your government might still reuiqre you to pay taxes, disclose your foreign accounts, and companies. However, offshore jurisdictions do not share your information, and it is no made public.
The majority of jurisdictions have no taxes such as income, sales, capital gains, value-added, estate, succession, gift, and stamp taxes.
No limitation in regards to business activities involved. Companies are free to participate in virtually any economic, financial or business activity. In some jurisdictions there are essential formalities and licensing (such as bank, insurance, realty and some financial companies).
Using an offshore company gives you a legal structure that offers greater protection from liabilities. Having a structure in a separate jurisdiction than where you reside gives greater protection as it is such more difficult for creditors to gain access to your accounts and details. Separating you from your assets and business gives you legal protection should your company, trust or foundation be targeting by any legal claim.
Starting an offshore company gives you a degree of privacy that can not be found in most countries as companies formed locally are considered ‘domestic’ for tax purposes which makes them more transparent and accountable to institutions. Most offshore jurisdictions have gone out of their way to ensure the security and privacy of non-resident investors, companies and individuals looking to form a corporation so as to encourage foreign business capital.
Forming an offshore company today gives you many advantages that can not be found locally. Form a company today and see what advantages you benefit from.