There are a wide variety of completely legitimate and legal reasons why you would want to use an offshore company. Here are just some of them!
Everyone is entitled to a certain level of privacy and financial matters should not be wholly exempt from this. Of course, this doesn’t mean that you want to hide your money from the government. It could be for a plethora of other reasons including safety and wanting protection both personally and for assets.
A common reason for setting up an offshore company is to meet the requirements of the country or jurisdiction where the property is located. Some don’t allow foreign money to purchase local immovables, so the only way to execute the transaction is to incorporate . This domestic company will then purchase it. There are also some which will give VAT refunds through local companies, another bonus if you are looking to invest in property locally.
Setting up an investment fund in a jurisdiction with a favourable fiscal regime makes it easier to combine capital from varying sources. The Cayman Islands are a popular choice. Recently, however, the British Virgin Islands has offered investors its Approved Fund and Incubator Fund. Both of these are great options for those wanting to manage or be a part of a fund.
It could be that the country you live in does not offer the best options in terms of incorporating, setting up businesses, funds, or other instruments. Some countries levy high taxes, others make it expensive to set up or move money, and others are simply drowning in bureaucracy. For those that want a better legal architecture, better courts, more operational efficiency, and yes, of course, lower taxes, an offshore company can be a great option.
Some jurisdictions are notorious for making it hard for businesses to open bank accounts. Having flexibility to choose where you want to incorporate and open an account can make life a lot easier for you.
Setting up an offshore company is an effective way to protect assets from those who want to get their hands on them. In overly litigious countries, having assets based there can be a big risk . Seeking an offshore company, trust, or foundation can be a sensible solution.
Lower Tax Rates
There’s nothing wrong with seeking a lower tax rate because you are still contributing to the growth of the offshore countries economy. A number of Baltic States have low tax rates in an effort to develop their business sectors. The same goes for Caribbean countries and small island states. Selecting an offshore jurisdiction means you can benefit from more tax treaties than you may in your country of residence.
Fast Offshore has been working in the offshore world for over two decades. As well as providing corporate, fiscal and legal advice, we have assisted our clientele with license applications for many different requirements. We also offer business planning and fintech advisory services. To find out more or to discuss your plans with us, contact us today!