The Benefits of Setting up an Offshore Company
An offshore company can propose many benefits and advantages to its owner that would otherwise be difficult to attain without it. With the rise of globalization, setting up an offshore company has become ever more advantageous and easier to accomplish. The benefits to gain from an offshore company will always depend on the jurisdiction of the offshore company and to a certain extent, it will also depend on the laws of the country of residence of the company’s owner. It is, therefore, necessary that you not only pay attention to the offshore jurisdiction but that you also consider your local laws to make sure that every step you take is in line with the law.
RVG specializes in Offshore Company Setup, the establishment of branches of foreign companies and opening bank accounts.
The Major Reason
Lots of people falsely assume that offshore companies are all about money laundering and tax evasion, but this can’t be any further from the truth. There are fundamental laws that are necessary for every society, and such laws are always somewhat identical worldwide, like marriage, age of adulthood and criminalization of theft and murder. But when it comes to money and business practices, there is really no internationally accepted standard or code of ethics that a government should follow in the management of its economy and the businesses within it.
Many countries in need of international capital and investments have fashioned laws that make their local business climate attractive in one way or the other, especially for the well to do foreigners. By becoming properly educated about these unconventional laws, you can then decide to legally take advantage of them by setting up an offshore company of your own. Some of the popular offshore destinations of the world include Anguilla, Seychelles, Belize, The British Virgin Islands, The Cayman Islands, Cyprus, Denmark, Dominica, Gibraltar, Ireland, Hong Kong, The U.S.A. and the UK are interesting jurisdictions for offshore company setup, for non-resident individuals who are not really interested in tax havens but rather want to make use of the other benefits of having an offshore firm.
The Benefits of Setting up an Offshore Company
This list of benefits should hopefully throw some light on the advantages of running an offshore firm and also possibly answer any questions you may have concerning the issue.
An offshore company can be an excellent vehicle for protecting your wealth. If you have a substantial amount of money, then an offshore company can help you to protect it from lawsuits and divorce settlements. Normally in a lawsuit, you are liable as an individual, including your properties, assets and in fact anything that belongs to you that could be turned into cash. Some lawyers even specialize in suing high net-worth individuals and as long as you are worth some good money, someone will always be scheming to sue you. An offshore account that relates to an offshore company, that relates to you gives you peace of mind because if you do get sued, then your offshore assets will be completely out of the reach of any greedy lawyer.
Benefit from Low Taxes
Setting up an offshore company can assist you to help from the low taxation laws of certain jurisdictions, also popularly known as tax havens. The level of taxation normally depends on the jurisdiction. Some allow complete tax-exemptions for nonresident companies, others offer very low taxes and some others still offer attractive flat-rate taxes or license fees. Another very attractive offer is the 0% capital gains tax where the interest gained from money market transactions is not taxable. This is normally a big attraction for high net-worth individuals who would like to invest their money in safe avenues while avoiding the payment of tax on their profits. An important factor to consider in this situation is the laws of the country of residence of the beneficiary owner of the shell company, in order to ensure that there are no conflicts of the tax laws between the two jurisdictions.
Help with International Expansion
An offshore company setup can in specific situations be very essential in order for a business to expand internationally. A local company may encounter many legal and bureaucratic issues that will hamper its international expansion as long as it adheres to the rules and regulations of its home country. But with the offshore company set up in a favorable jurisdiction, international growth of the company can be expedited. This situation is particularly true for companies that have already gained heavy growth momentum at home and want to expand internationally.
An offshore company setup will assist you to defer taxes almost indefinitely. Given the simplicity of running an offshore business, you could do almost anything you want with it, the only possible problem is your local jurisdiction where you live physically. If you are not required to file reports about your foreign holdings, then no problem. If you are required to file reports or pay taxes on your foreign holdings then you could simply defer the taxes of your shell company for as long as you want, legally.
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