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What Can I Do With an Offshore Company?

What Can I Do With an Offshore Company?

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Published by Healy
Many people don't know they can easily open and profit from an offshore company.
Many people don't know they can easily open and profit from an offshore company.

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Published by: Healy on May 02, 2011
Copyright:Attribution Non-commercial


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‘What can I do with an offshore company?

’ Or, Demystifying the offshore entity Q&A Many people have asked our firm: “What can I do with an offshore company?” The question they should really be asking is: What can I do with my own company? Setting up an offshore company is nothing more than incorporating your own company outside of the country where you currently reside. The only difference between your own company onshore and your own company offshore, is one must follow the laws of the land in which the company was incorporated. This can sometimes cause confusion. Each country in the world has its own rules for company formation. A self-governed location, such as a country or nation state is called a ‘jurisdiction’ if it implements an independent tax system. Jurisdictions can typically choose their own tax regulations, such as setting rates of taxes. These jurisdictions set a rate for taxing corporate profits. Singapore and Hong Kong are amongst the lowest corporate tax rates in the world and have become popular destinations for entrepreneurs undertaking company incorporation. This gives business owners options, affording them to be able to seek low tax, or tax exempt, options amongst jurisdictions with excellent reputations as efficient business hubs. Tax costs can be significant to an incorporated business, especially smaller enterprises or start-ups. Losing profits to taxation can impede an entity’s growth, and can mean the difference between expanding and thriving or scrimping and surviving.

Q: So, what can you do with your own company? A: Company formation, especially Singapore company formation or Hong Kong company incorporation, allow an individual to set up a business with low corporate tax obligations. A low tax rate means greater profit retention for a business entity.

Forming your own company will also allow you to: · A: Respect the law - if properly structured, offshore companies and offshore bank accounts are legal and legitimate tools in any business plan strategy. A: Do more with your profits. A: Pay yourself more and owe less tax. A: Protect and grow your assets (such as homes, inheritances, pensions, etc.)

· · ·

There is liability in starting any new business, and working with foreign and international laws, regulations and tax codes can make conducting business in a different country seem daunting. But different business structures and options exist for each particular set of business objectives. Offshore company formation and offshore banking continue to be popular and profitable choices regardless of where a company is incorporated because the benefits of owning your own company remain the same, if not increase. Many countries permit foreign nationals to freely incorporate, operate and own a business. Even countries that do no permit complete foreign ownership within their jurisdiction seek to implement schemes to bridge the benefits of free market economy competition and entrepreneurship. For example, the United Arab Emirates and Dubai have free trade zones for this purpose, just as China’s WFOE scheme encourages foreign investment. These jurisdictions have benefitted from the influx of capital, talent and knowledge brought in from global entrepreneurs. Many times, the term ‘offshore’ can throw people off. There is a stigma in the idea of offshore business and accounts because of abuses to legal tax systems through tax havens, tax evasion, and the uses of privacy and anonymity, which have resulted in more scrutiny from ta authorities around the world. And with scenarios like the above, it’s understandable. However, the truth of the matter is businesses and companies incorporate abroad every year for legitimate and legal tax strategies, for protection, and for best comparative advantages, rates; proximity to markets, etc. Q: So, does this apply to you? A: Absolutely. Some countries, most notably, United States, require their nationals to remit tax on all of their profits, even, offshore income. The advantage of using a professional corporate services firm to assist in structuring an offshore company setup is being able to use their experience and knowledge of the different company law requirements. By effective tax planning, your offshore company incorporation will meet the legal obligations and respect tax systems of the jurisdiction of incorporation and your home country.

About the authors
Healy Consultants is a leading corporate services firm headquartered in Singapore for over a decade. Many clients are from Europe and North America who are living, working and running businesses abroad. These clients started their business in Singapore and Hong Kong. To learn more about the legitimate benefits of offshore business and banking shared by entrepreneurs the world over, visit http://www.healyconsultants.com.

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