Offshore Company

Offshore Company

Increasing taxes, lower interest rates and increased living costs are predicted for the next few years. It's time to start looking at some tax efficient structures.

A Company Offshore is Much Like a Company Onshore

To Company Offshore is Simple

 At the risk of sounding simple, a Company Offshore is like any other company. So many do not understand that there is really little difference in a company operating offshore as opposed to one operating onshore. There are still rules and regulations that a company must follow but with the offshore variety, the rules may be a bit more relaxed. When in doubt about the jurisdiction that is being considered, get all the facts so you will not be surprised, later.

Another thing to consider is the politics of the hosting jurisdiction as that may impact the tax structure that the company must face. The main difference in the two companies is the tax liabilities. Onshore companies are taxed considerably more than are the offshore brothers. When discussing rules and regulations, a Company Offshore experiences less governmental regulation than the onshore companies.

Securing an Independent Adviser for the Company Offshore

When a company is thinking about going offshore, the single most important thing to do is to employ a company who acts as the agent of the company going offshore. These agents or incorporating agencies will always act with the best interest of the new company uppermost in their mind. They make their money when the new offshore company is up and running. Make sure that the agency that is contracted has a good track record in the part of the world where the Company Offshore will be located.

The contracted agency will work hard to make sure that the Company Offshore is secure and operating in accordance with the laws of the host country. Privacy is one of the most important parts of the formation of a new Company Offshore. A good agency will also make sure that a local registered agent will be in place at the Company Offshore. This agent is in charge of keeping the records of the company and making these records available for inspection.

Avoiding Taxes by Taking the Company Offshore

Asset protection and the lowering of a company’s tax bill are two compelling reasons to Company Offshore. For governments to operate they must have a means of generating money. In most instances this generator is some type of tax paid by the company or individual. When considering going offshore, one must realize that a Company Offshore generates a great deal of bad press as it is accused of running away from paying its fair share to maintain the government.

Tax planning is a wise step for a business to take before moving offshore. The one thing that must be considered is that tax evasion is wrong and it will get one put into jail. The use of a good accounting firm or an agent will help prevent problems further down the line. A company must be aware that the hiding of income is illegal and will not be supported by any argument to the contrary.