Offshore company formation

An offshore company formation is usually considered for tax related reasons. Because the offshore company is registered in a country where either a very low tax rate or even no taxes at all have to be paid. The prerequisite for this, however, is that no business activity is carried out in the country.

The potential benefits of a properly structured offshore company are numerous. Some of the main offshore company benefits and potential advantages include the following:

• - Asset Protection
• - Privacy
• - Simplicity
• - Tax Optimization

Asset Protection

Offshore companies are often ideal vehicles for holding global assets of all kinds due to strong laws in the jurisdiction of formation around protection of assets held by the company.

Privacy

Another of the main offshore company benefits lies in the fact that identities of the owners and sometimes even the directors are not a matter of public record. High Net Worth Individuals and their families are at increased risk of being targeted by financial enemies, scam artists and other criminals looking to inflict harm and can thus gain from the various offshore company benefits relating to enhanced privacy.

Simplicity

One often overlooked offshore company benefit is the relative simplicity of the setting up an offshore company and thereafter maintaining it. Offshore company formation in many jurisdictions is a quick and seamless process and i@-V law firm aims to make this process as simple as possible.

Tax Optimization

One of the main offshore company benefits is that they are generally “tax neutral” meaning they are often tax exempt in the country of incorporation or they pay a low or nil effective rate of taxation when used as a holding company receiving dividend income for instance. Properly structured and administered, this may result in a reduction, delay or even complete elimination of the tax burden on the company or it may just mean the avoidance of double taxation of the same income.

The biggest advantages of an offshore company

• - Tax benefits
• - Geo location advantage
• - Income that is generated abroad is taxed either not at all or only very slightly (
• - Anonymous management possible
• - Less bureaucracy
• - No accounting
• - Low share capital necessary

The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

Founding a company abroad as a citizen of another country is legal?

Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

Do you have to live in the country where you start a company?

Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

Problematic law firms: closure is made more difficult

Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

Changing offices is made more difficult

Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

Privacy Policy/Office Location

Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

No taxes?

No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.