There are several reasons to form your company offshore – you may want to take advantage of the ‘tax haven’ status of an offshore location, or you may simply want to protect your name in the area that the registration body for that jurisdiction covers. You may want to open a bank account in that country, or you may simply want a ‘neutral’ place for your board directors to meet in – especially if you choose a glamorous or clement location. Any of the above reasons are perfectly acceptable for wanting to form an offshore company, so it all depends on the business in question and whether certain conditions need to be met. It’s critical to understand at this juncture that every company is different and that company offshore strategies are myriad.
No trade, no tax for Company Offshore
In many cases these tax havens have several definitive bonuses. The company offshore formations can’t be used as a trading business front, but in most cases they can open bank accounts and act as a tax haven, as many offshore locations have minimal, or completely absent tax rules for non-residents. It’s critical, however to take expert advice on this sort of formation – in many cases you’ll find that your company can be formed with ease, but that you need to comply with various international laws designed to prevent tax evasion, laundering or terrorism. All are relatively simple to meet, so should be of no concern to you or your board of directors. In some cases, you’ll also be able to nominate directors or ‘protect’ the identity of your directors – again, it all depends on the jurisdiction in question and what they offer by way of support for company offshore incorporations. Companies offshore are often subject to an entirely different subset of rules, so if you need to check anything, your first port of call should always be with the statutes governing your jurisdiction, or your legal and/or financial expert.