What can I do with an offshore company?

When you set up a company in an offshore jurisdiction, it basically means that you are incorporating your own company, outside of the country where you are resident. The only difference between incorporating a company where you live (onshore) and where you don’t (offshore) is that you are required to follow the laws of the country in which it is incorporation, as well as any applicable laws from the country where you live, regarding international business. 

Each country has its own set of company laws and regulations and in legal terms and as long as it implements an independent taxation system, it is referred to as a jurisdiction

In terms of taxation, the global average corporate tax rate is around 24% with the highest being 55% in the United Arab Emirates, and a zero tax rate in Bermuda and the Cayman Islands. Some of the lowest rates are Cyprus, Ireland, and Liechtenstein- each with 12.5% and Gibraltar and Barbados with 10% and 5.5% respectively. 

Countries that do not have general corporate income tax include Bermuda, British Virgin Islands, Isle of Man, Vanuatu, and Anguilla, as of 2019.

Tax planning is one of the most important considerations you need to make when deciding on where, and why you want to open an offshore company. It should also be something you consider seriously when you open a business, especially a small enterprise or start-up. Creating an appropriate corporate structure in the right jurisdiction will help to create growth and to make the difference between thriving or surviving.

Whether you register your offshore company in BVI or Panama, you can set up your business so it has an efficient corporate structure and is perfectly placed to take advantage of global opportunities. Creating your own offshore company can also allow you to increase profits while protecting and growing your assets.

Of course, there is a liability in starting any kind of business, especially when you work with international laws and regulations in a jurisdiction you are not familiar with. There are however a plethora of different kinds of business structures and options in existence, allowing everyone to meet their business objectives. Offshore company incorporation, when combined with offshore banking, are surefire and profitable choices.

Most countries allow foreign nationals to freely incorporate and operate from their territory and even those that do not outright allow 100% foreign ownership, usually provide a way around it. For example, the UAE has free trade zones and China allows foreign investment through its WFOE scheme. As a result, these jurisdictions have enjoyed an influx of revenue, talent, knowledge, and business opportunities

Countries like the United States require all nationals to remit tax on any of their income or profits to the US, regardless of whether it is gained in the US or internationally. By using an offshore company in the right jurisdiction, solutions can be found that result in lower fiscal obligations globally while ensuring legal requirements are met.

Thousands of companies incorporate in offshore jurisdictions every year for a range of reasons; legitimate tax reasons, protection, asset management, discretion, competitive advantages, geographic advantages, and more.

Contact Fast Offshore

Fast Offshore has over 22 years of international business experience in the US, Central and South America, the Caribbean, Europe and beyond.  Our expert team is on hand to bring up to date advice, tailored to the client’s specific needs and business goals. To find out more about incorporation in either onshore or offshore jurisdictions, or any other kind of corporate services, contact us today.

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