Offshore Company Formation: Why You Need To setup Offshore
Around the world, many governments are considering dramatic tax increases in order to pay down public debt. Markets have been rocked by financial crises upheaval. Meanwhile, political turmoil, such as the United Kingdom’s decision to leave the European Union, threaten global order. In the increasingly complex and integrated global economy, it is essential for businesses and individuals to protect their wealth.
- The world economy is growing more unstable, and risks are everywhere.
- The Greek financial crisis proved that even citizens in developed countries face extremely high risks.
- Offshoring offers a way to diversify your wealth geographically, ensuring that you are not overexposed.
The best way to protect your assets is through diversification. By diversifying, you spread out risks and ensure that the impact of any disruptions can be minimized. While diversification is often thought of in terms of portfolio assets (i.e. don’t invest all of your money in one stock), geographical diversification is now just as essential.
Don’t invest or store all of your money in one country. Consider this, during the 2015 Greece financial crisis the Greek government shut down banks and instituted harsh capital controls. Bank withdrawals were severely limited, and both people and companies had to scramble to obtain cash. Even now, while capital controls have since been relaxed, many restrictions remain.
Many Greek families and businesses have been devastated by these capital controls. Greek businesses and citizens who offshored part of their wealth, however, have been able to access cash far more easily. People and businesses who offshored were able to not only continue on as normal, but could even take advantage of the situation. Competitors unable to compete? That creates opportunities. Asset prices, such as real estate falling? More opportunities.
Besides providing assurances against political and economic instability, offshoring can make it easier to conduct international business, reduce the burden of taxation, and increase privacy. The benefits of offshoring can vary greatly from situation-to-situation, so get in touch if you would like to learn more.
Let’s dig deeper into the challenges you could face, and how offshoring can help.
What is an Offshore Company Formation and what are Offshore Companies?
- Offshore companies are businesses, usually a type of incorporation, setup in an offshoring jurisdiction.
- Offshoring jurisdictions, in turn, are countries that feature legal and taxation environments that are very favorable for businesses and wealthy families.
- Offshoring companies reduce exposure to a wide range of risks.
Offshore companies are companies formed in overseas jurisdictions. In many cases, these companies are setup specifically to manage international wealth and international business operations. Often, these offshore companies do not participate in the local economy of the offshoring country in question.
Offshore companies are usually, but not always, setup as incorporations. Such companies are essentially granted a legal existence outside of their owners. This means they can assume risks -such as loans- open bank accounts, and directly own assets. Incorporations are useful because they reduce a variety of liability risks. Incorporations can also provide other benefits, such as increased confidentiality.
By setting up an offshore company or start an offshore company formation, businesses and individuals can store some or all of their wealth in an offshore jurisdiction. To start an offshore company formation and offshore companies can also be used to manage international business operations, and can store profits for later investments.
Offshore company formation and offshore companies are essential for tax planning, risk reduction and planning, managing international business functions, and family financial management. When it comes to financial management, there’s a strong temptation to keep things local. However, as already pointed out increasing political and economic turbulence can threaten wealth anytime, anywhere.
There’s an old saying, “don’t put all of your eggs in one basket.” Why? If you drop the basket, you could break your eggs and be left with nothing. This maximum holds true for financial management, you shouldn’t invest all of your wealth in one asset, or store it in one place.
While you will most likely need a local bank account for personal and business purposes, you should also relocate a portion of your wealth to an offshore jurisdiction. These locales generally feature zero to low tax rates, and increased privacy. This way, you can reduce your tax burden while also protecting your personal information from prying eyes.
Offshore Company Formation: Is offshoring legal?
The clear answer is yes. In the past, governments tried to frighten business owners and wealthy families off. Nowadays, however, everybody can read about Google, Facebook, Apple and numerous other companies who are using offshore vehicles in full compliance to the law. Instead of fighting with bureaucracy they move their entire research center to a country with low regulation. They don’t simply accept a given tax rate but move their billing to a country with low taxation. Adjusting your business internationally is not only legal, it is an important aspect if you want to remain competitive.
Offshore Company Formation and banking for small businesses
For many years offshore banking has been reserved for the super rich. Yet times have changed and more and more banks focus on small businesses as a new and important clientele. Notwithstanding, not every bank is ideal for every business and one has to carefully evaluate. Our team of banking experts has access to more than 30 banks out of 21 countries and will find the right partner for you.
How to find the right Offshore Company Formation structure?
The tricky thing is that offshore structures all look very similar. It’s little details that make the difference between a worthless bunch of papers and a successful structure helping your business grow and prosper. The key to success is the initial consultation. Every business is different and everybody has different goals he wishes to achieve. Our team of experts is here to listen. We will analyse the pros and cons and evaluate which structure is best for you. This can all be done via email, free of charge and fully confidential.
How much will it cost?
All initial consultation is free of charge. For the company formation services you can review our schedule of fees at this link. Once we found the perfect offshore vehicle for you we will detail all applicable fees to set it up and maintain it over the years. We are looking forward to establish a fruitful partnership for many years and will never surprise you with hidden fees. All our pricing is transparent and you will know the total investment before placing an order.
What do I have to do?
Once we determined which structure is best for you and you placed the order you can actually lean back and relax. We will handle the entire company formation for you. Your presence is not required at any time which means you never have to travel or worry about anything.
How long does it take to start an Offshore Company Formation?
Depending on the selected country and the complexity of the chosen structure you are looking forward to processing times that range from two days to a few weeks. The important thing to note is that we take care of all the individual steps and coordinate the work of all involved parties.
How to get started?
You wonder whether there are benefits you can claim for your business? Get in touch with us today and find out!