5 BENEFITS OF HAVING AN OFFSHORE COMPANY
Around the world, companies face varying tax policies, from extremely harsh to extremely liberal. Taxation is required for countries to provide basic infrastructure for their citizens.
Like all other citizens, companies are required to pay taxes, yet some countries excessively tax companies such that their financial survival is at stake.
Thus, companies seek out more lax tax policies elsewhere, and with a host of companies offering attractive tax benefits, offshore company formation is presented as a way to take advantage of these policies.
In such a scenario, it would be wise for the companies involved to research possible tax opportunities abroad and to calculate the benefits that they would receive from setting up an ofshore company.
Some of the benefits that they could reap from such a formation would are listed as follows:
1) Privacy and the chance of anonymity
Setting up an offshore company provides privacy and anonynimity from conventional tax authoroties, and allows companies to take advantage of tax policies that increase profits and returns on investment.
2) Protection of assets
Naturally, assets would be protected, and this is a key feature that motivates many companies to form offshore corporations.
3) A conducive legal environment
Countries wishing to attract offshore companies under their tax policies should simplify their legal frameworks. These frameworks should be simplified to the point such that international law can be circumvented to provide more incentive for companies to establish offshore entities.
4) Devoid of unnecessary red tape administration
Cutting through governmental regulations kills investment, and thus it is wise for countries wishing to attract offshore companies to simplify their administrative protocols so that a company’s transition to the new tax system can be quick and efficient.
5) Financial independence
Offshore companies require complete financial independence in order to manage their funds and generate optimal profits in a world of fierce competition.
Countries that work within approved international regulatory principles and frameworks without the tight controls that some countries place on their businesses provide an attractive location for businesses seeking to launch offshore companies.