Why You Need an Offshore Company
9 Reasons to Set Up an Offshore Company
To protect your hard earned assets is the principal goal of an Offshore Company. A Company located in an overseas jurisdiction will be much more difficult for any hostile creditor to attack. In some jurisdiction such as The Cook Islands it will be all but impossible. Other jurisdictions such as Nevis require any creditor to post a substantial bond before starting legal action against your Company. Of course the best defence is for your hostile creditor not to know of the existence of the Company or your connection to it in the first place.
There are several offshore jurisdictions where you needn’t disclose publicly any information about the Company. Nobody will be able to find information on directors or shareholders. Choose a jurisdiction with no Mutual Legal Assistance Treaties if privacy is your main concern.
3. Legal Tax Reduction
There are many offshore locations where the tax rate is zero. Income earned by your offshore Company will be tax free in the jurisdiction it’s set up in provided it doesn’t do business there. Careful planning will be needed if you stay in a high tax jurisdiction to make sure you are compliant with tax laws there while staying tax free.
4. Avoid Capital Gains Tax
If you own asset such as a property or a business in your home country you will probably be liable for capital gains tax when you sell it. Having that asset owned by an offshore structure will often mean that there is no capital gains tax liability in any jurisdiction.
5. Protection from Political and Economic Instability
If your country suffers from political or economic instability an offshore company is essential. You will not have to worry about exchange controls. Your assets will be safe from government seizure in a more politically and economically friendly jurisdiction.
6. Avoid Filing Financial Information in Your Home Country
Countries such as the UK insist on Companies filing a lot of financial data each year. This is intrusive, time consuming and costly. Most offshore jurisdictions will not insist on you filing financial information.
7. Own Overseas Property
Your offshore Company can own your overseas property. In fact in some cases it will be essential to incorporate a Company in the country where you’re buying a property.
8. Hold Precious Metals Overseas
If you hold precious metals in an overseas vault it’s best that your offshore company is the legal owner of the precious metals. As the Company is a separate entity you will not have to disclose your precious metals ownership anywhere you’re obliged to disclose your personal assets.
9. Access to Investment Opportunities
Some investment opportunities are for “high net worth investors only” or “not available to citizens of the USA, Canada or the UK”. Of course your offshore Company will be able to invest in these opportunities where you as a private individual cannot.