Offshore Incorporation

What does it mean?

The term "offshore" regarding incorporation refers to jurisdictions where no corporate or personal income, capital gains and other taxes, reporting requirements, or restrictions on company employment policies exist. However, as the "offshore" company is exempt from local taxes and restrictions, it may not conduct business within the jurisdiction of incorporation.

Key Benefits

Conduct business as an entity. Companies, like individuals can make investments, trade portfolios of stocks, shares & bonds, buy and sell property and/or land and conduct any legal business activity - if not done in the country of registration.

Privacy. Offshore companies offer privacy. If the company share is held by a Trust, the ownership is legally vested in the Trustee, thereby giving increased tax planning advantages.

Reduce payroll administration. Offshore companies need not pay social on-costs (social security, withholding tax or the typical associated expenses of employees working abroad) AND pay employees in the required currency via an offshore bank.

Allow employment or consultancy fees to accumulate in a low tax area. Offshore contracts for services rendered enable fees to accumulate without tax.

Protect investments in other foreign countries. The interest on loans from offshore companies to companies in other foreign countries can reduce tax burdens. In countries of strict exchange controls, loans enable the repatriation of investment funds.

Asset Protection. In combination with a Trust, an offshore company can avoid high levels of income, capital and death taxes that would otherwise be payable if the assets were held directly. It can also protect assets from creditors and other interested parties.