What Is an Offshore Company and Why I Need One?

Why an offshore company? The term offshore is confusing to many, and is often attended by negative connotations. In truth, it is the cheapest insurance available today. Insurance? Throughout your life and career, you cannot be assured that no professional or personal litigation will affect the course of events. To paraphrase the Irish blessing: the

Why an offshore company?

The term offshore is confusing to many, and is often attended by negative connotations. In truth, it is the cheapest insurance available today.

Insurance?

Throughout your life and career, you cannot be assured that no professional or personal litigation will affect the course of events. To paraphrase the Irish blessing: the wind may not always be at your back.

An offshore account is the best insurance one can have in order to avoid possible problems. It is the best insurance policy to secure assets and bypass many potential pitfalls.

Another, no lesser reason, is the simplicity with which such a company can be operated. As a businessman you may have though of this during your last tax return. You would love to dispense with accounting and other bureaucratic requirements and devote your time to what you do best, selling!

This venture will cost you less than a bookkeeper.

You have decided, you need an offshore company, and you want to know what an offshore company is.

You need to talk to a real expert in offshore!

Many large multinational corporations optimize their taxes through offshore companies and subsidiaries. Among them Renault-Nissan, Office Depot, Apple, Microsoft, Skype…

You are probably asking yourself,

Why not me?

Why not optimize your income like the very wealthy and multi-national companies?

Which jurisdiction should I choose for my company?

The most important factor in choosing a jurisdiction is to be sure that your company will be incorporated in a country that has:

1) reliable means of communication

2) political and economical stability

3) good reputation

4) sophisticated corporate laws

The right choice of jurisdiction also depends on where you live and on the business you conduct.

Who should use an offshore company?

An offshore company may be of interest to a great number of people and it may be used for various activities:

Businessmen:

Creating an offshore company allows you to begin an activity without having to deal with the set-up of a complicated infrastructure. An offshore company allows you to benefit from fiscal advantages and ease of administration.

Commerce over the Internet (E-Commerce):

Internet traders can use an offshore company to maintain a domain name and to manage internet sites. An offshore company might be ideal for people whose business is on the internet. You might choose to incorporate the registered office of your company in an offshore jurisdiction to take advantage of the various benefits offered by these jurisdictions.

Consultants / Counselors:

You can also carry on your consultancy or counseling business through an offshore company. You will find it easier to manage your company and will have reduced or even zero taxation depending on the jurisdiction in question.

International business:

International commerce can be carried out through an offshore company. It will handle purchases and sales operations, taking advantage of the fact that its profit will not be taxed, or only at a low level, depending on the jurisdiction. This type of use is particularly interesting where goods from one country are sold in another country while you yourself are based in a third country.

Holding intellectual property rights:

Any kind of intellectual property right (a patent or trade mark) may be registered in the name of an offshore company. The company may also buy or sell this type of rights. It may also grant rights of use to third parties against payments which will be considered as revenues and will thus benefit from the low level or zero taxation of the jurisdiction in which it is registered.

For the custody of Assets:

Offshore companies are used to hold both movable property (such as yachts) and immovable property (e.g. houses and buildings). In addition to confidentiality, the benefits and advantages they offer include exemption from certain types of taxes (e.g. inheritance tax). It should be noted, however, that some countries do not allow the acquisition of movable/immovable property through offshore structures and therefore those wishing to form an offshore structure are advised to check with a competent authority before proceeding.

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