Offshore Company Formation Benefits
Several business owners and investors are turning to the help of offshore company forming as well as investing to ensure that their profits are maintained. It can seem like a bit of a complicated task, but the truth is that offshore company formation is relatively easy once you know the basics. There are many benefits to be had that will allow you to expand your company very quickly. Let’s talk about why you should choose offshore investing in order to maximize your earning potential.
How Does an Offshore Company Work?
Running an offshore company is essentially the same thing as running any other type of company, it just happens to be located in an offshore location. Offshore company formation is typically in the form of an IBC or an international business corporation. An IBC is basically a corporation that has the ability to do business wherever it choses, aside from onshore locations. Opening an offshore company will allow you to receive a large amount of tax reductions and it can also give you added protection that will keep your assets free of being seized. This can be very beneficial for anyone who is currently in a legal battle or may be facing one in the near future.
What Should I Keep in Mind When Investing Offshore?
It’s a good idea to always keep yourself informed about tax requirements that are implemented in the various different jurisdictions that you plan on investing in. When you are aware of the different tax regulations you are also aware of the most beneficial locations to host your company in. One of the best options to use to make sure that you’re choosing the right offshore location is a consulting firm. These types of firms have a broad knowledge of all of the different jurisdictions and will be able to help you find the ideal tax haven for you and your business. You can do this on your own, but it’s best to leave this type of research to a professional.
Who Can Open an Offshore Company?
There are absolutely no restrictions in place when it comes to the residence of the owners of offshore companies. There are, however, a number of regulations that are in place by banks if you’re planning on investing or operating an offshore company. It’s a common misconception that anyone can be given the OK to open an offshore company, but this is simply not true. You should do your homework to find out all of the necessary requirements that you must meet. A consultant firm can expedite this process and better your odds of being granted permission to invest or form an offshore company.
Opening, transferring or investing in an offshore company can be a very smart business strategy for a lot of business owners. If you want to get the most out of your investments, I highly suggest that you look into forming an offshore company.
Jordan Yates has worked with a Hong Kong international business company for the past 7 years and has over 20 years of investment experience.
While I can’t speak for every nationality, Americans are allowed to open offshore corporations basically without exception. The issue is reporting, not whether you can or can’t. (Capital controls are still a bit opaque, not right out in the open… at least for now they are)
One issue to consider is the appropriate jurisdiction for your company. I prefer one that has no entanglements with bankrupt western countries. British Virgin Islands, Bermuda, Isle of Man, etc. are all tied to the UK and Europe. Consider Seychelles, Belize, Nevis.
Also consider that larger, non tax-haven jurisdictions like Hong Kong and Singapore may be better for your image or make it easier to open an offshore bank account, but they have reporting and audit requirements on most companies. In Singapore, you may even owe some tax, which defeats the purpose as far as I’m concerned.