Offshore Company Formations (IBC)

Benefits

Offshore companies may bring a number of benefits to individuals or companies.

• Taxation - business may be structured so that profits are realized in ways that minimize their overall tax liability.

• Simplicity - except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up and maintain companies.

• Reporting - the level of information required by the registrar of companies varies from jurisdiction to jurisdiction.

• Asset protection - it is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.

• Anonymity - by carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation. Having said that, current anti-money laundering regulations often require banks and other professionals to look through structures.

• Thin capitalisation - offshore jurisdictions tend not to impose "thin capitalisation" rules on companies (except for regulated entities such as banks and insurance companies), allowing them to be formed with a purely nominal equity investment.

• Financial assistance - offshore companies are usually not prohibited from providing "financial assistance" for the acquisition of their own shares, which avoids the needs for "whitewash" procedure in certain financial transactions.

Most Popular Jurisdictions for Company Formation