Offshore Company Formations

Benefits

Offshore companies may bring a number of benefits to individuals or companies.

• Taxation - business may be structured so that profits are realized in ways that minimize their overall tax liability.

• Simplicity - except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up and maintain companies.

• Reporting - the level of information required by the registrar of companies varies from jurisdiction to jurisdiction.

• Asset protection - it is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.

• Anonymity - by carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation. Having said that, current anti-money laundering regulations often require banks and other professionals to look through structures.

• Thin capitalisation - offshore jurisdictions tend not to impose "thin capitalisation" rules on companies (except for regulated entities such as banks and insurance companies), allowing them to be formed with a purely nominal equity investment.

• Financial assistance - offshore companies are usually not prohibited from providing "financial assistance" for the acquisition of their own shares, which avoids the needs for "whitewash" procedure in certain financial transactions.

Offshore companies