Tax relief or tax exemption is the main reason why many businesses are set up in offshore jurisdictions. These jurisdictions have typically been set up to offer tax haven status for offshore formations and there are so many around the world now that the new business has the ability to choose from a large list of areas each offering its own unique benefits. However, generally speaking there are a handful of benefits that can be enjoyed by your business regardless of where it is set up.
Tax Relief for Offshore Formations
The obvious benefit really is the tax relief that it offers. Some jurisdictions levy absolutely no corporation tax and may offer exemption from estate or inheritance tax, even sales tax. From a personal point of view, the directors of a company should consider looking for those areas that provide exemption from income tax, inheritance tax, and other taxes and levies.
What you need to know with Offshore Formations
Asset protection is important to many people with their own personal wealth management program. Capital gains taxes and inheritance taxes can take a large chunk out of any such assets but through the establishment of offshore formations in the right jurisdictions it is possible to avoid much of the liability involved in these. Check the different regulations and tax schemes that are in operation within a particular jurisdiction to help you decide which is the best for you and your business.
Benefits of Offshore Formations
You can also enjoy complete anonymity in the right jurisdiction for your offshore formations. Nominee shareholders and directors can be named on your business registration documents and this means that you personally do not have to appear on the company records anywhere. Tax havens are usually set up in such a way that you do not have to file company records, files, or accounts either so these will not be in the public domain.
Decide what you want from your offshore formations before you start to consider the different jurisdictions where you can set up a new company. Look at the business and personal taxation relief that areas offer and consider the initial setup and ongoing annual fees for your IBC. By comparing all of these factors you can benefit most from your new business.