If you register an offshore company, you need to take more effort than a business owner that sets up a business back home. However, an offshore company will give you numerous opportunities that you would hardly get in your country of residence, and this justifies all the hassle. What is more, typical offshore jurisdictions are like evergreens: even when the world is shaken by some adverse events, they remain as stable and peaceful as ever.
Starting an offshore company will require some self-education, so we will be happy to welcome you to our portal where you will get access to our impressive knowledge base devoted to starting an offshore business and opening corporate bank accounts. The laws and regulations in the new country may differ a lot from those you are used to in your home country, so you’d better be prepared.
If you have no time for extensive reading and analyzing in order to get all the information you need and become aware of all the nuances, you can use our turnkey services. We have highly-qualified offshore experts who work for you online and on-site to incorporate companies and open bank accounts remotely. There are also free services you can use: we will choose a suitable jurisdiction for your business without any fee on your part.
The Rationale for Offshore Company Setup
Let’s have a detailed look at the reasons why business people flock to the offshores to set up a company:
- Political and economic stability. Offshore jurisdictions depend on foreign capital and know very well that the best conditions for business are stable ones. With this in mind, they are trying to ensure as much stability in the political and economic sphere as they possibly can – even if the world around them is hit by a crisis!
- Straightforward incorporation procedure. Everybody hates red tape, so offshore countries do their best to minimize administrative procedures. However, they still need to comply with the requirements of international regulators to avoid being blacklisted or sanctioned. As a trade-off, they manage to keep the balance between minimum paperwork and all the required checks.
- Asset protection. Your assets kept in offshore banks will be protected much better than back home. Just to illustrate, suppose a creditor files a suit against you and wins it. In your country of residence, it will result in arresting your accounts and seizing your funds. However, offshore jurisdictions will keep your assets intact as they do not recognize the decisions of foreign courts. Your creditor will have to win the case again in a local court, which is a dead end in 99% of cases.
- Online company management. This is very convenient for many busy entrepreneurs: it is enough to make important business decisions over the phone or use videoconferencing to run your company. This may require making some local arrangements, though, but gives you much more freedom and flexibility.
- Plan B. A full-fledged Plan B includes an offshore business, an offshore business account, real estate abroad, and second citizenship for the whole family. If you are not prepared to handle it all, you can register at least an offshore company to have more flexibility if something happens in your home country.
- Low taxes. This is one of the main features that has always attracted international entrepreneurs to offshore jurisdictions. And though aggressive tax optimization schemes are no longer existent, offshores still offer low (or even zero) taxes on one condition: you derive all your income abroad without cooperating with any local companies or private customers.
- Minimized reporting. You will have to keep financial reporting to comply with FATF requirements, but you are not required to file any documents with offshore authorities or engage any auditors to work with your reports.
- Personal data confidentiality. Some business owners want to remain in the shadows, and offshore countries give them a legal right to do so. Absolute anonymity is impossible, but your name will not be mentioned in any documents that have to be publicly disclosed. Moreover, you can use local nominee service in most jurisdictions, which is an absolutely legitimate opportunity to remain incognito.
- Wide access to global markets. The laws of many countries prevent investors from participating in some projects they may see as really profitable. However, a foreign company and a foreign bank account are the keys to forming a truly diversified portfolio.
- Import and export freely. Most offshore jurisdictions simplify import and export operations as much as possible and conclude agreements on duty-free trade to create the most beneficial conditions possible for the companies registered in them.
- Set up a trust for inheritance purposes. A trust is a much more reliable and flexible instrument than an ordinary will, so do not miss an opportunity.
- Excellent banking services. Offshore banks attract customers by providing a wide range of banking services, quick wire transfers, affordable commissions, and profitable investment projects limited to their customers.
The list looks really impressive, but we will not hide from you that there is no single jurisdiction where all of these features are implemented on the highest level possible, so you have to prioritize. For example, Swiss banks offer very good investment projects for their customers, while Nevis and Belize are the top jurisdictions for asset protection.
Choosing a Jurisdiction
The choice of appropriate jurisdiction is not that easy, so it’s no wonder we help our customers for free. Let’s look at some considerations we take into account:
- A company (and a bank account) in Hong Kong or Singapore would be perfect if you intend to cooperate with Chinese counterparties.
- Costa Rica, Panama, or Caribbean countries would be perfect destinations for company formation if you are going to enter the US market. However, you may also consider low-tax states within the US, like Florida or Wyoming.
- Curacao and Costa Rica are great magnets for gambling businesses as obtaining an appropriate license is pretty straightforward.
You can look at a more extensive list by following the above link to our portal.
We invite you to book a session with our experts and discuss the details of your business to get professional advice.