The term “offshore” often refers to a company or business that is conducted in an area other than the place of residence of the person who owns the business. Hence, if you will have an offshore company, it will be incorporated in another jurisdiction than your residence. Practically, though, “offshore” is used to describe the different types of offshore companies and even onshore companies used for multiple different functions. The term is also used to describe companies that aim to achieve objectives relating to international investment, international tax planning, conducting international business (trading and services) and family wealth structuring.
The following are the types of offshore companies:
• International Business Company (IBC) – these companies enjoy a statutory tax exemption in the jurisdiction of incorporation
• Low Tax Offshore Company – these companies that are found in offshore jurisdictions enjoy a low statutory or effective rate of taxation
• Limited Liability Company (LLC) – It is a fiscally transparent company that allows income and tax liability to pass through to its members
• Limited Liability Partnership (LLP) – It is a fiscally transparent entity that may operate without attracting tax in the jurisdiction of formation
• Onshore Company – This is a company that is incorporated in jurisdictions that either have a territorial tax regime or that offer some other incentives. The company can be used in a structure to achieve a low total effective tax rate for the structure.
If you have a properly structured offshore company you can experience numerous benefits including the following:
• Protection of assets
• Privacy
• Simplicity
• Tax Optimization
• Low Administration Costs
• Low Capital Requirements
• Flexibility
Interested in forming an offshore company? It would be best if you consult with a company formation services provider. Choose one that is reliable and that has complete support services for offshore companies in every major offshore jurisdiction.
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