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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
- Tax Optimization
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.
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.
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 [email protected] law firm aims to make this process as simple as possible.
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 business abroad
Many agencies and law firms do not advise comprehensively or wrongly. Learn what to look for.
Gravity of the situation
Often, these law firms think foreign companies are half-silk, tax evasion is favored and mailbox companies are the leaders rather than the exception. This is true, however, only in some start-up agencies that do not have the necessary expertise. Self-proclaimed law firms that do not employ tax accountants or lawyers usually set up companies that are unlikely to operate legally. We set up and look after companies that can withstand tax audits and that are legally operated.
Do you have to live in the country where you start a company?
You can set up a company worldwide, as long as the respective country allows you as a foreigner to acquire shares in local companies or to act as a managing director. If this is not the case trustees can be used. For example, Cyprus allows every EU citizen to own and run a business. Nevertheless, trustees can be used for the purpose of identity protection. However, it is important that the management takes place locally, in the country in which the company is to be taxable. In addition, a permanent establishment must be set up. Without these, a major tax offices around the world do not recognize the company and in the worst case would require additional payment of corporate and business taxes plus late payment surcharges. We rent you a real office and set up a permanent establishment that meets all requirements beyond doubt.
Problematic Law firms: Secrecy is not regarded.
Some law firms bind customers with toggle contracts and exert pressure when the customer wants to close his company. If you are a client of a law firm that has established a legally flawed company, they can be blackmailed. Because in the case of a fiscal problem, law firms without a license are not bound by a duty of secrecy.
Migrating to a different law firm
We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. The process of changing law firm is made often difficult on purpose. Therefore, we have developed a principle of trust. If you are not satisfied with us and want to change, you can do that at any time. The necessary documents (resignation letter), you receive from us standardized after founding. You are therefore protected against unexpected costs and you are free at any time to visit another law firm. So far we have not lost any customer to another law firm.
Privacy / Firm Location
Your accounting documents are kept safe with us. In addition, all electronic data is stored encrypted and accessible only by us, which are bound to a professional secrecy. All accounting records are also stored locally only. Neither authorities nor hackers are able to access this data.
There are quite a few locations in the world that do not charge taxes on companies or individuals, or only estimate a very low flat rate tax. But this can rarely be used without corresponding change of residence. If you are a resident of any major country, the relevant double taxation agreement is decisive. Providers who promise otherwise lead them to tax evasion, which in the case of discovery usually punishes severely. We advise against setting up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in your origin country can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous private account no longer exists.
We comply with the following code:
- Legally secure foundations
- No unexpected(hidden) costs
- No false promises
- Finding the right solution by focusing on your requirements
With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.
For whom is an offshore company suitable?
Consulting companies take advantage of an offshore company by reducing the tax burden and reducing the administrative burden.
DIf one thinks of his descendants, the inheritance taxes are greatly reduced or reduced if it is an offshore company.
If you register such companies as offshore addresses, you will not be charged any tax.Stock traders
For stock traders, an offshore company does not have to pay corporation tax and only accept small deductions
Patents such as Licensing rights, patent rights, etc.
Intellectual property rights may be transferred or registered to offshore companies. These then grant rights of use to third parties. The advantage is that the resulting user fees or profits from it remain tax-free
International trading activities
Tax exemption if the trading activities are exercised via the offshore company.
The 3 characteristics of an offshore company
- Company must be registered as a corporation within the jurisdiction of incorporation
- The owners must be resident outside the country
- Complete business activity may not take place in the country where the company is registered
Offshore Company company formation - That's the way it works
Not only do you receive detailed advice on the subject of offshore - we also put the former plan into reality with you. For more information please contact us.