An offshore company is an organisation that has been incorporated outside of its home country and is not permitted to carry out business within the home country.
There are many jurisdictions providing offshore company legislation and choosing the most suitable one for your requirements requires careful consideration as there are many factors to consider, including the way that an offshore company will function.
When selecting an offshore jurisdiction, the following must be taken into consideration:
- Statutory compliance requirements
- Any foreign exchange controls
- The banking facilities
- Double taxation treaties in place
- Simplicity and ease of operation
- Low capital requirements
- Cost of incorporation and professional services
There are many advantages to a properly structured offshore company in different locations of the world. Offshore companies offer benefits to businesses or individuals in many areas including:
- Offshore asset protection
- Offshore legal protection
- Tax optimisation
- Offshore banking
- Importing or exporting
- Online businesses
In this article we look at the advantages of setting up an Offshore Company.
Security and Privacy
Privacy and lawsuit protection are important benefits of the offshore company and will differ depending on the law in the different countries.
In an offshore company, the names of the actual officers, directors and shareholders can be excluded from the company’s documentation, instead using replacement nominee directors, shareholders, and secretaries. Most countries offering offshore companies will not divulge the beneficial owners or officers to a third party.
This can be extremely beneficial when a company does not want to, say, reveal its business strategy to a competitor.
Exceptions, however, apply for acts of terrorism or criminal activity that are being investigated.
Offshore Asset Protection
Offshore companies provide effective asset protection and can protect your financial situation from public view by having foundations, trusts, investments, bank accounts or other assets held by an offshore corporation.
By spreading your assets in different parts of the world you can diversify the risk and can provide a strong layer of protection from future liabilities.
Offshore Legal Protection
When a legal action is pursued against you it often involves an asset search to determine the assets that you have if you lose the case.
With an offshore company the assets are no longer in your name making them much harder to be tracked.
An important benefit of an offshore company is that it may be exempt or pay lower taxes than companies incorporated in your home country.
Simplicity and Ease of Operation
Offshore companies are relatively simple to set up and maintain and after incorporation can benefit from more flexible regulations in terms of audit, accounting and other requirements, including public filings, compared to domestic companies.
Low Capital Requirements
Offshore companies often provide flexibility in terms of structuring of the capital of the organisation. This often includes low minimum capital requirements.
Offshore banking helps protect offshore companies from currency exchange risk and provide lower transactional fees by transferring the money in their own currency.
Importing or Exporting
Companies can also benefit from importing or exporting within an offshore location which can lead to the profit from the trade being taxed at a lower rate.
The management of online businesses in different parts of the world can be easily executed through the incorporation of offshore companies.
Starting an Offshore Company
Selecting the right jurisdiction is an important part of establishing an international structure, as every jurisdiction is different, and every situation is unique.
Trust Services specialises in offering quality, bespoke services and can help you open your International Business Corporation, not only in Panama, but also in many other jurisdictions.
Our skilled and bi-lingual Corporate staff have decades of experience in incorporating entities across the globe. Find out more by contacting us today about using Panama as a platform to launch your international presence from.