Tax benefits
- An offshore business can legally minimize domestic and international tax. For example, a properly structured non-resident UK LLP is legally tax exempt on global income sources from outside the UK. Consequently, entrepreneurs prefer to conduct their EU business through this entity;
- An offshore company allows international business to conduct trade in multiple countries in a tax efficient manner. For example, our Client can efficiently conduct business throughout Asia by incorporating a single Singapore offshore entity, instead of registering a business and incurring tax in
each country of business; - A well-located offshore holding company can minimize with holding tax through double tax avoidance aggreement (DTAAs). For example, a Singapore offshore company enjoys benefits of 83 DTAAs,
reducing withholding tax on income from global subsidiaries to holding company; - Capital gains and inheritance tax can be legitimately minimized when international assets are owned by an offshore LLC. For example, a Luxembourg SPF can own international securities, real estate, and
private equity, and can be transferred or sold to third parties without triggering local tax liabilities.
Other benefits of an offshore company
- Online businesses often rely on offshore company registration to reach customers across the globe. For instance, a Singapore based company may set up an Indian corporate bank account to receive
funds from Indian clients. Meanwhile, the services will be continued to be provided out of Singapore; - Offshore entities are frequently used to set up joint venture companies because both parties need a reputable neutral jurisdiction with strong contract law (e.g. Singapore). These reputable jurisdictions give strong business law support, allowing for fair dispute resolution. Thus providing confidence to business partners and customers;
- Offshore entities can also be used as a form of asset protection. CGP’s offshore business services are also often used by individuals who live in politically unstable countries to hold wealth and avoid expropriation or exchange control restrictions in their country of origin;
- Some offshore jurisdictions do not require non-resident companies to disclose identities of shareholders and directors, allowing them to protect their privacy.
Easy to register, operate, and maintain an offshore company
- Many offshore jurisdictions have relatively relaxed regulatory regimes, reducing regulatory and administrative burdens on our clients;
- Some offshore jurisdictions do not require annual financial filing and tax returns, reducing accounting obligations.