Things to Consider Before Opening Offshore Company

Many offshore companies have notorious reputations for being tax evading tools, but, even the world’s large and most successful companies—such as Google—have offshore entities. It is legal to set up an offshore company and There are many beneficial reasons why companies choose to incorporate in foreign countries. Before you setup your offshore company, here are some things to consider:

• Privacy and confidentiality – Setting up a company in a western environment presents many risks as the proliferation of the internet and the amount of information available publicly is growing.. Is privacy important to you? There are some countries that do not make public financial information, sensitive company document and information such as  the names of all your shareholders and directors.
• Cost effectiveness – Setting up an offshore company is often cheaper than incorporating locally. For instance, there are some countries that do not require any minimum capital. You don’t even need to maintain a physical office. You can simply setup a virtual office to cut back on costs.
• Maintenance and overhead – Keeping the lights open will be easier as you don’t need to hire an entire team but rather often just one company service provider to provide all of the basic services to maintain your offshore company in good standing.  This is often a less costly and easier solution than doing same in your country of residence.
• Professional help – You will be treading on foreign land, so it is best to get help from professional offshore company specialists. The consultant can explain to you everything you need to know on what it’s like to start and run a company in the country of your choice. You will be familiarized with the regulations and requirements in the jurisdiction you are interested in. There are company service providers that can do more than just give you a consultation—they can handle everything, from the submission of all documents to managing your offshore company on your behalf.

Know About the Benefits of Offshore Company Formation

Offshore company formation can be a component of a legitimate solution for companies that are looking to save money. One such savings may be the reduction of overall tax liabilities or otherwise a deferment of payment of taxes allowing for tax free reinvestment of the money and the benefits of additional compounded returns. The benefits of offshore company formation depend on the jurisdiction of the country where you will form your offshore company as well as relevant tax laws of the residence of directors and shareholders Aside from enjoying tax advantages, here are other advantages you might enjoy when you form a company offshore:

• Freedom from Big Brother – Financial privacy is no longer a reality in many countries.  Governments are becoming larger and are searching for additional revenues which is resulting in more invasion of  privacy.. Financial enemies can locate more information about you online now than ever before.  If you want the most privacy and confidentiality legally available for you and your business partners, an offshore company is a good solution.
• Fewer risks – The trouble with a company that isn’t private due to all of the public disclosures often required is that it is prone to risks such as criminals who make take advantage of technology to steal from you, as well as the government’s third party contractors. Your company’s finances as well as other sensitive assets such as intellectual property will be safer in an offshore company.
• More options – Some territories such as Hong Kong or the British Virgin Islands are known for having millions of offshore companies registered. But there are still new countries that you can go to where there are less than 200,000 international businesses. This means there are still a lot of company names free for registration where this is important whereas in Hong Kong and BVI you must usually have at least 4 words in the name or something very unique to not already be on the register. You can also enjoy competitive pricing for offshore company formation in less crowded jurisdictions.
• Lower running costs – Running and maintaining a company is often cheaper in a foreign location. For starters, the actual formation fee is often lower. In addition  some countries don’t require any minimum capital. Ongoing support services such as accountants, legal advisors, directors and company officers with expertise in international business are often much more affordable in an offshore jurisdiction than is available in your country or residence.