An offshore company is commonly untaxed or pays a set, annual tax. Offshore firms are positioned in offshore jurisdictions where a really low tax rate is obtainable to encourage investment. These tax havens are stereotypically islands and former colonies reminiscent of the Channel Islands, Seychelles, Honk Kong and BVI but in addition include traditionally high-tax countries reminiscent of the UK and US. Most offshore firms include substantial asset protection features e.g. limiting creditors to ‘charging orders’ or offering bearer shares and nominee directors to preserve the secrecy of principals.
Varieties of Offshore Company
Offshore firms are available different forms to serve the various needs of businessmen and investors. Offshore corporations, that are also often known as limited firms or International Business Corporations (IBCs), are sometimes used to enjoy tax-free profits and conceal the helpful owners of offshore accounts. Other common firms include offshore limited liability firms and offshore protected cell firms. Offshore trusts are used for asset protection and to carry other offshore firms.
Advantages of Offshore Company Formation
- Asset Protection
- Tax-free foreign currency trading
- Virtual Office Services
- Tax-free investments
- Real estate holding and property management
- Nominee directors protect anonymity
- Few auditing requirements
- Risk management
Offshore Company Formation Services
Offshore company formation service providers or agents often help investors to establish their offshore company within the required jurisdiction. They’ll offer consultation on the principles and regulations of every country and help investors select the precise jurisdiction by which to make their investment. Additionally they provide nominee directors, managers and trustees to guard the client’s privacy.