An offshore company (also known as an International Business Company), is a company which does not conduct substantial business in its country of incorporation. It is designed to be a flexible business instrument which can be integrated into a variety of tax planning and asset protection structures and arrangements. An ideal offshore company takes advantage of low taxation and stable government currency control in countries which are often termed ‘Tax Havens’.
Setting up and operating an offshore business uses the possibilities offered by certain countries for non-residents: tax, confidentiality and company structure. In exchange for an annual license fee such countries allow companies registered within their jurisdiction many tax freedoms.
As a separate legal entity an offshore company has full capacity to enter into any business transaction that an individual can lawfully undertake. Because it has limited liability, in most cases, neither the shareholders nor the directors are responsible personally to third parties for the company’s liabilities. However, persons owning and or operating offshore companies may still be held responsible for their own acts – for example when performing illegal functions such as assisting clients in fraud, money laundering etc.
Most people use offshore companies for the for asset security protections in jurisdictions with social, political or economic instability. Offshore companies provide legal mechanisms to ensure that individuals’ assets are protected from seizure or unwarranted loss. In addition many offshore jurisdictions provide the confidentiality and anonymity required by some clients.
Why form an Offshore Company?
Every individual has his or her own reasons for wanting to set up an offshore company – and doubtless you will have yours. Such reasons will invariably include privacy, legal protection and regulatory simplicity.
Legal protection : This is usually a primary reason for people such as you considering an offshore structure. Most business operations tie the assets of the business to a specific name, usually that of the owner This is not the case with an offshore entity – meaning that your assets become immune to lawsuits, litigation and other legal judgments.
Privacy and confidentiality : More than likely your current business does not enjoy the level of privacy that can be provided by an offshore business. An offshore company provides anonymity.
Regulatory advantages – Offshore jurisdictions are intentionally business friendly and have regulations that are straightforward, simple to understand and inexpensive to comply with.
What are the benefits of incorporating your business offshore ?
We can discuss and explain to you the particular advantages which may flow to you in your case. However, based upon our dealings with past clients, such advantages may include :
Clear legal distinction between private and business assets
Protection of separate business activities
Personal liability reduced in case of bankruptcy
Significant tax advantages
Privacy and confidentiality maintained
Inheritance claims avoided
Protection of assets
Investor friendly share structure
New credit line establishment
Global expansion facilitated
Professional image and corporate administration advantages
Why use an offshore company ?
You may already have a clear idea about how you wish to use your offshore company. We shall be pleased to discuss this further with you. Our previous clients have found offshore companies useful for engaging in activities such as :
Holding of real property assets
Personal and Corporate Tax Planning
Providing professional and or consultancy services
Holding Intellectual Property including Patents, Trade Marks, Franchises, Royalty and Copyright
Credit and financing arrangements
What are the advantages of an Offshore Company ?
We shall consider the particular advantages for you to ascertain that the offshore route is right for you. However, previous clients have particularly appreciated the following advantages :
Most company details can be kept confidential
Compliance requirements before and after incorporation are minimal
Holding of company meetings is very flexible
Physical presence of attendees not required at company meetings
Annual general meetings are not mandatory
Board Meetings can be held anywhere
Relaxed accounting requirements – company accounts do not have to be filed
Most jurisdictions enjoy political and economic stability
Easy conduct of international business transactions
No restrictions as to the nature of business
Holding of foreign property in a third country
Flexible transfer of assets
Rapid service ‘ready formed’ companies available for many jurisdictions
What are the disadvantages of an Offshore Company ?
Offshore companies is not for everyone. If you choose to choose to use an offshore company for your business possible disadvantages include :
High profile trading operations cannot be done
Lack of public registration
We shall discuss all aspects of your particular case with you so that you make the choice that is right for you and your specific circumstances.
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Tax and accounting services are provided by Chhokar & Co Limited trading as Chhokar & Co, Chartered Accountants. Registered in England (Registration No: 07994976). Registered office: Herbert House 27-29 The Broadway Southall, Middlesex UB1 1JY United Kingdom
Consulting services are provided by Chhokar & Co Consulting, a business name of SSC Legal Limited. Registered in England (Registration No: 03972539). Registered office: Herbert House 27-29 The Broadway Southall, Middlesex UB1 1JY United Kingdom