Setting up an offshore company is an essential step if you are looking to internationalize your business. This is even more important if political unrest, inflation or hyperinflation are getting in the way of your business idea.
An offshore company helps you insulate your business from political turmoil in your home country. Offshore companies offer some interesting advantages, some of which are;
- Asset Protection
Protection from bankruptcy, lawsuits, divorce, civil unrest, and other ‘worst case scenarios‘.
- Tax Reduction
This is different from tax avoidance. Offshore Jurisdictions minimize taxation and regulatory interference for individuals and corporations.
Having your business headquartered abroad gives you an international outlook.
An offshore company can be used by:
1. International investors.
2. Wealthy persons who have wealth that needs strong asset protection measures.
3. Individuals looking to secure intellectual property.
4. Companies looking to have a subsidiary or headquarters in an offshore environment.
5. Online businesses that have no physical presence.
6. Corporations looking to take advantage of regional trade advantages.
7. Startups who want to maximize their profits and minimize tax burden.
8. Consultancy services corporations of any kind that need not be based in any specific country.
9. Directors or managers looking for estate planning and wealth and management.
10. Anyone who has an international lifestyle, ‘digital nomad’ or dual citizen and are looking to minimize their tax footprint.
Setting up an offshore corporation is about saving money and protecting your assets legally, not stashing cash or tax evasion.
In the words of Benjamin Franklin, the only things that are certain are death and taxes. However, in some countries, taxes aren’t necessarily a sure thing.
Millionaires and billionaires are notorious for transferring their funds into offshore accounts around the world to avoid higher tax rates. A recent study estimated the super wealthy of the world hide approximately $21 trillion abroad.
So what countries top the list as the top tax havens?
1. British Virgin Islands (British territory)
2. Bermuda (British territory)
3. Cayman Islands (British territory)
7. Jersey (British dependency)
10. Hong Kong
The most important first step towards an offshore corporation is to simply take action. The sooner you get your business set up, the sooner you can enjoy the benefits. And it can be a life-changing process.
What other process lets you reduce taxes, insulate your assets from turmoil, and keep greedy hands away from your hard-earned assets?
Choosing the right jurisdiction depends on the reason why you want to set up the company, whether it is for privacy purposes, tax benefits, investment or reputation.
It normally takes about one week to register the company depending on your jurisdiction of choice.
The next step is to open an offshore bank account. The main reason for opening an offshore bank account is for flexibility purposes.
With the bank account, you can use online banking services and you can easily access the funds from any part of the world.
It can take several weeks to open an offshore bank account for Offshore companies and has become increasingly difficult so getting help from experts who have relationships at the bank is advisable.
Look, if you’re serious about starting an offshore company, we can help.
See the cost of forming an Offshore Company here