Offshore: What is it?
A company is considered to be “offshore” when it has located its headquarters in a country where it has no business and whose directors are not based in the area. An offshore company is by definition a non-resident company. In order to take advantage of any tax benefits, an offshore company may not operate in the country in which it is located, and may not make any use of its economy: no local workforce, no finance from local banks, no public aid etc. The offshore company is often represented by a local agent, and is always given instructions from abroad.
Offshore companies are essentially used for intangible activities such as the sale of patents or licences, consultancy, brokerage, and for service industry activities. However, almost all types of trading can be undertaken by an offshore company in order to optimise their taxation. Following an initial appointment, we will be in a position to advise you on the most suitable area of jurisdiction, and will eventually come to an arrangement depending on the complexity of the transactions.
An offshore company is suitable for both wealthy individuals, who are keen to optimise their tax, and for consultants or entrepreneurs wishing to start up a business with limited overheads.
Offshore: Who is it for?
Are you paying too much in expenses? Are you not able to earn a decent income because it would cost you double in taxes and other deductions, or do you need to recruit in order to grow your business and to meet market demands? And yet you are producing turnover and margins which should allow you to make a decent wage?
Well, there is one simple, low cost solution.
You can use an offshore or overseas company to relocate your business headquarters to significantly reduce your costs and to significantly increase your profits.
The main advantages of an offshore company
- No corporation tax on profits
- No VAT
- No inheritance tax on shares held by non-residents
- No obligation to maintain accounting records and documents
- Not requirement to submit annual accounts
- No minimum level of share capital required in order to form a company