What is an offshore company?
An offshore company is a company that is set up in a different country from the country of residence of the stakeholders, and its usually meant not to do any economic activities in that particular country. In general offshore company is a company that is set up in a different country from the country of residence.
These entities are used to conduct business transactions with partners who are not based in the country of incorporation.
Common Uses
Offshore companies are generally registered to facilitate global trading, allowing clients to close contracts and sales while minimizing international taxation and accounting as well as filing obligations. These companies are also commonly used as holding vehicles for worldwide subsidiaries and:
- Financial privacy and safety
- Investments funds in tax-neutral locations
- Lower tax rates
- Asset protection
Most common types of offshore company
There are four main types of business entities which can be registered as trading or holding offshore companies as following:
-
International business companies
These companies are mostly available in tax haven jurisdictions. They are usually cheap to set up and benefit from special taxation regulations which allow them to trade with customers outside of their country while being tax exempt. Examples include theCaymand Islands, the British Virgin Islands;
-
Hybrid companies
These companies are usually considered tax-resident but benefit from reduced or no corporate income tax. To access DTAAs, they must meet residency requirements, usually achieved through appointment of resident directors. Hybrid companies can be set up in Labuan, Mauritius, or Seychelles;
Non-resident companies
In countries with a territorial tax system, companies controlled from overseas and do not conduct business within the country of registration, benefit from a legal exemption from corporate income tax. Such entities are usually an excellent choice for our clients who do not want to damage their reputation using a tax haven business entity. Examples of such jurisdictions are Singapore and Hong Kong;
Zero-tax companies
these companies are LLCs incorporated in a country which does not implement corporate income tax. The UAE is an example of a jurisdiction providing for the registration of zero tax companies. However, such a business setup tends to be more challenging and costlier than the other 3 types of entities above.
Top Recommended Offshore Company Jurisdictions The following are the offshore company jurisdictions that offer a combination of asset protection, lawsuit protection and privacy.- Nevis – Privacy, Convenience and Stability. First, it has a short statute of limitations for fraudulent conveyance. That means, once you place assets into an LLC in Nevis the Nevis courts will not hear challenges to the asset transfer after the two year time has expired. Second, if a member does get a charging order against his membership in the LLC, the judgment falls off of the company in a short three-year period. These charging orders are not renewable. Moreover, the setup cost is lower than
other jurisdictions. Nevis ranks high on the affordability rating. Plus, Nevis allows us to form companies
quickly and requires a reasonable level of due diligence. Moreover, this Caribbean jurisdiction regularly
updates and improves its legislation to keep up with the modern requirements and to maintain an edge
over other financial havens. - Belize – Companies, IBC (International Business Company) and Banking. In addition, you will see that Belize offers with a wide variety of offshore incorporation options. For example, the Belize LDC, Belize’s alternative to the LLC offers some unique asset protection benefits.
- Bahamas – Tax Free, Privacy and Low Fees.
- British Virgin Islands – Maximum Security, Asset Protection and Privacy. Moreover, you can research how offshore companies and IBC’s in BVI help protect your wealth.
- Nevis – Privacy, Convenience and Stability. First, it has a short statute of limitations for fraudulent conveyance. That means, once you place assets into an LLC in Nevis the Nevis courts will not hear challenges to the asset transfer after the two year time has expired. Second, if a member does get a charging order against his membership in the LLC, the judgment falls off of the company in a short three-year period. These charging orders are not renewable. Moreover, the setup cost is lower than
Top Offshore Company Formation Services At The Best Price
-
Professional Consultation
Our team of experts understand the specific requirements of your business and tell you the best suitable country in which you can establish your company.
-
Services as Registered Agent
CGP cater domiciliary services such as featuring as registered agent in the eyes of law, mail forwarding, reception services and telephone answering to just to name a few.
We Are Aiming For Quality Results
Forming a company outside local jurisdiction is a tricky task, and Company Global Pro is indeed a pro in its offshore services. Following are the advantages of establishing an offshore company:
- You will get considerable tax relief.
- Superlative confidentiality on all fiscal data.
- Maintain complete secrecy on the company owner’s name and enable operation in other jurisdiction.
- Do not need to reveal the true identity of the company’s owner to competitors.
- Acquiring various benefits such as sales commissions, interest, revenues, royalties, etc.
- Getting a proper framework for online business.
