No matter what you have heard, good or bad, opening an Offshore Company is a completely legitimate way of taking your business offshore and taking advantage of the laws that reduce your tax burden and protect your assets. It is a very viable option and here is why.
Easy Set Up
Setting up an offshore company is a quick, easy and hassle-free process. Some Tax Havens have created Special Economic Zones (SEZ) to accelerate offshore company set up. With a legitimate Office and employed staff in an SEZ, your company can enjoy the benefits of your chosen jurisdiction. The SEZs help with work permits, licensing, offshore hosting, payment gateway and much more. In places such as the Cayman Islands, you can access the best financial services providers of the world and commendable infrastructure to facilitate your business take off smoothly.
Choosing the right place to incorporate your offshore company, correctly setting it up and maintaining it right is bound to lawfully shrink your tax obligation. In a lot of developing nations, non-resident companies are tax exempt or savor the advantage of low taxes. Tax benefits are one of the primary reasons why you should consider taking your company outside your home country. A number of developing nations charge corporate tax rates higher than 25%. No wonder companies choose the offshore path to buy and invest in countries other than their home country.
Less Red Tape
It is a good idea to set up an offshore company in a jurisdiction that is a good fit for your business. Local governments of the Tax Havens offer concessions and benefits for new firms and for the prevailing ones who wish to expand internationally to attract direct investment. They design laws in a manner to provide flexibility in offshore capital and structuring. Usually, most such jurisdictions waive you off the requirement to hold an annual meeting and place no restrictions on an offshore company about where it should hold its meetings. They also do no place any restriction on an offshore company regarding the number of shareholders and directors. This means less paperwork.
The world is now a global village. With the world connected by technology and extremely keen on international trade and investment, globalization is creating opportunities for offshore businesses at a fast pace. Since the traditional barriers have been lifted you can think globally regarding growing your company. Maybe your best market is the one that you have not even considered yet. Globalization definitely offers you an edge over your competitors.
An offshore company is an excellent vehicle to hold a variety of global assets such as intellectual property, real estate, etc. Developing nations have strong laws regarding formation and protection of assets that are formed within their country hence parking your patents with an offshore company placed in a jurisdiction where its revenue is taxed at a lower rate. Futuristic offshore jurisdictions motivate R&D and other work that will potentially enhance your company’s Intellectual Property. They understand the concept of evolving technology and new ideas are transforming to reality. Hence they offer great asset protection.
Access New Markets
If you want to develop your business in a new country or region then accessing new markets by establishing offshore companies is a great way. Local government, agencies, and private businesses motivate emerging industries and offshore companies willing to invest locally and set up in their country through subsidies and other lucrative incentives. Such jurisdictions are dependent on international investment to improve their new markets, create a dynamic activity where local jobs increase and ideas are shared.
Financial Safety and Privacy are important. In most of the Tax Havens offshore companies are not required to publish their financial information or publish the details of shareholders, and directors. Most of the offshore jurisdictions do not disclose any financial information to a third party unless a terrorist activity or a criminal activity is suspected.
Meet Legal Requirement
Say if you find a lucrative business opportunity in a foreign country and you need to obtain a property, but that country does not allow you to own property unless you purchase a property through a local company, what do you do? To encash an opportunity in that country you go by the legal route. You will be legally establish an offshore company and invest in that nation through a local corporate structure. Sometimes to grow your business in a lucrative location you need to establish an offshore company to meet the legal requirement.
Hopefully, this article has offered enough insight into the reasons why you can use an offshore company and see how establishing one fit into your international growth scale.