All about offshore companies
Today we will talk about offshore companies (from the words -off and -shore – off the shore). Such firm is a legal body, it has to be registered in an offshore zone. These zones include territories and countries, which are interested in attracting foreign customers with their tax and other advantages. Based on this, these companies either pay taxes at a very low rate, or do not pay them at all. They are not even subject to local taxes such as VAT or capital tax. The biggest plus – there is no headache with the preparation of financial statements, because it is not required. But there are also disadvantages – companies do not have the right to have local real estate and hold any commercial activities in the country. Also, you cannot interact with its residents. An offshore company can open accounts with local banks, not necessarily offshore, the main thing is that there is no currency control there. It will not be difficult to open your own offshore company, for this it is enough to turn to specialist for help like Swiss Global Corporate Services.
The main thing is that there are no long queues, you just need to study the fundamental conditions for providing benefits so that there are no problems in the future. Most often, an offshore operates in a system of minimizing tax costs, acting as a foreign contractor to existing resident companies, not registering resident in the country of doing business: it’s not required for it, and any fixation of a representative office will inevitably entail tax reporting requirements (and, accordingly, deductions) in this country. An offshore companies are an independent legal body and conducts its activities in accordance with the country of registration laws, from the point of view of international law.
The structure of an offshore companies depends on its type and the specifics of the legislation of the country of registration. The most common are LTD, LLC and LLP. Let’s look on the wide-spread one in the offshore business – LTD. It’s the limited liability partnership. It must have a sharer, one is enough. The sharer may be the actual owner of the company, but for better confidentiality, nominal sharers are used. They can be an individual or legal person. The firm must have one or more managers. The manager can be a citizen of any country due to the most offshore jurisdictions. Also, he may be its owner and the individual or legal person. But it’s better to delegate this function to the nominee manager for better confidentiality.
In addition, the offshore often acts as an auxiliary unit of the main resident company, which acquired the offshore firm, taking on part of the turnover, accumulating profits and providing an additional investment tool. You can not only store money there, when you have a corporative account of an offshore firm in a decent western bank, but also by issuing bank payment cards for yourself and your next of kin, use them both in your country and in foreign trips around the world, regardless of the economic climate and stiffness of the regulatory bodies at home. Not to mention that the details of a well-known bank under a good contract can only positively affect the quality of the transaction with a profitable partner: there is no connection between such an account of your offshore firm and an account with an offshore bank (which serve completely different purposes). Contact our services for more details : www.sgcsmanagement.com
In order for an offshore firm to become an advantage, not a burden, you need to follow a few simple rules. Their non-compliance can lead to the loss of money, time, reputation, and in some cases even freedom:
– Act strictly in the legal field. Watch for changes in the rules, and if it’s difficult to control tax changes, for example, in Russia, Mexico and the USA at the same time, resort to the services of a pro.
– The offshore company may be called a tool. Any tool is used either for good or for harm. The second is punished and reckoning comes quickly. In addition, this tool is not able to solve all the problems of business or human relations, but it can help.
– Do not pursue cheapness of services. An offshore firm CAN NOT work not only without registration, but also without the reputation in the world, and a bank account in a bank with a good reputation to receive money. Where it is convenient to protect assets, it’s not always convenient to trade in industrial equipment.
– There are no easy solutions. When you choose an offshore, you have to work with it every day, you need to think, analyze, verify the facts. Otherwise, you will suddenly find yourself outlawed with fines and prosecution.
For all its attractiveness, an offshore is a responsibility. We advise you to play by the rules, and then this tool will open itself from the best side.
For the setup of your offshore company contact a real professional: