Posted by admin on January 27th, 2010
The prime object of setting up of an offshore company is to get maximum benefit from the economic opportunity of the company in which you are going to start your business. An offshore company, alternatively known as non resident company, offshore shelf company, or international company, is a company that does not carry out its business operations in its own country but in another country.
There are many reasons why people prefer to set up their businesses overseas, tax benefits and privacy being the prominent. However, some prerequisites are there to form an offshore company, such as Memorandum and Articles of Association detailing the objectives of the company as well as the rights of the members, Certificate of Incorporation which should be issued by the registrar of the company, directors, shadow directors, members, company secretary, statutory records, and proper bookkeeping.
Offshore companies are of different types including Limited Liability Company, Limited Guarantee Company, Protected Shell Companies, International Business Company, Companies Issuing Shares, Trusts, and Partnerships. All of these are just few among the many of the different types of companies that can be set up abroad.
However, the laws and regulations that govern these companies vary from country to country. Above mentioned are just an introduction on offshore company as well as its requirements and different types. Further elucidated in this article are some of the prime benefits of offshore companies.
As mentioned earlier, foremost of the benefits of offshore companies is that these organizations can perform their business without corporate taxes, which in turn allows companies to save considerable money. Tax benefits also helps for reduced regulatory cost and minimized compliances.
Another prime benefit of offshore companies is that they allow you to carry out business as an international entity; i.e offshore companies possess the same rights an individual has, hence can make investments, buy and sell real estates, trade in bonds and stocks, and set up any kind of business activities as per the laws of the country.
Likewise, setting up of a company overseas allows you to keep your business activities confidential, i.e it offers maximum privacy. Since companies are held by the Trust, the ownership of the company is held by the trustee.
This in turn provides maximum tax planning benefits. Apart from business confidentiality, offshore companies enjoy financial privacy, since these companies need not have to file their annual accounts with the government and also details of shareholders are not disclosed. Benefits of offshore companies also cover asset protection, as it enables the business owners to effectively manage wealth and to possess investment portfolios comprising bonds, cash, and stock. Read the rest of this entry »