Why Offshore
Most of clients using offshore corporations are one-person or
shelf-owned proprietors. Properly structured offshore incorporation
helps personal asset protection and minimisation of personal liabilities
and risks. As each offshore company is a separate entity, company
liability is not linked to owners' personal assets. Lawsuit in
one company is generally not having influence with other offshore
company with the same shareholder or owners' personal assets and
hence, some clients may establish 2 or more offshore companies
in order to spread through the risks.
Tax planning and saving is another utmost important feature of
incorporating an offshore company. Properly structured offshore
companies may help the transfer pricing strategy. Offshore company
may acquire capital assets, patents or copyrights and rent to
affiliates at market rates or franchise globally. Income may be
retained offshore. Doing business with offshore company at arm
length transactions may save tax from a high tax region or country.
To preserve privacy and reduce financial risks like weak currency,
severe exchange control, political unrest, incorporation offshore,
together with an international banking facilities, may assist.
There are many offshore countries or areas which are well regulated
and politically stable and free from exchange control.
Family Business protection may be achieved by setting up an Offshore
Trust. Careful and properly planned clauses within the Trust may
restrict the selling of the family shares in order that the family
business can continue over decades or generations.
Strict secrecy and privacy are one of the great features for offshore
incorporations. Owner(s) may find it useful for different reasons
in accordance to the local rules. Most offshore companies are
not required to disclose the owners or directors at the public
records. The privacy is keep to maximum.
Low maintenance costs and no statutory requirement to file Annual
Return or Audited Accounts are added features to go offshore.
You may read
more information on "Why Belize
company".
