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Why Offshore
Most of clients using offshore corporations are one-person or shelf-owned
proprietors. Properly structured offshore incorporation helps personal
asset protection and minimisation of personal liabilities and risks. As
each offshore company is a separate entity, company liability is not linked
to owners' personal assets. Lawsuit in one company is generally not having
influence with other offshore company with the same shareholder or owners'
personal assets and hence, some clients may establish 2 or more offshore
companies in order to spread through the risks.
Tax planning and saving is another utmost important feature of incorporating
an offshore company. Properly structured offshore companies may help the
transfer pricing strategy. Offshore company may acquire capital assets,
patents or copyrights and rent to affiliates at market rates or franchise
globally. Income may be retained offshore. Doing business with offshore
company at arm length transactions may save tax from a high tax region
or country.
To preserve privacy and reduce financial risks like weak currency, severe
exchange control, political unrest, incorporation offshore, together with
an international banking facilities, may assist. There are many offshore
countries or areas which are well regulated and politically stable and
free from exchange control.
Family Business protection may be achieved by setting up an Offshore Trust.
Careful and properly planned clauses within the Trust may restrict the
selling of the family shares in order that the family business can continue
over decades or generations.
Strict secrecy and privacy are one of the great features for offshore
incorporations. Owner(s) may find it useful for different reasons in accordance
to the local rules. Most offshore companies are not required to disclose
the owners or directors at the public records. The privacy is keep to
maximum.
Low maintenance costs and no statutory requirement to file Annual Return
or Audited Accounts are added features to go offshore.
You may read more information on "Why
British Virgin Islands (BVI) company".
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