- Last updated on . Written by Offshore Protection.
Offshore companies are highly versatile and advantageous financial vehicles, which can be used for many different purposes.
Online trading involves the buying and selling of stocks, forex, precious metals, commodities, and other financial derivatives. Each trader needs a broker in the jurisdiction and market where they want to execute their trades, along with a trading account.
There are two reasons experienced traders often use offshore companies to protect their forex trading accounts.
Bitcoin is back into the public mind as its continual resurgence has led to an increasing interest in not just individual but corporate buyers. However, technical vulnerabilities continue to be exploited, scams are appearing all over the place, individuals holding large quantities are being targeted, and hackers are preying on those with inadequate crypto security.
For the most part, due to the decentralised nature of cryptocurrencies, there is an every-man-for-themselves attitude when it comes to crypto security. Due to the lack of a centralised entity, we are our own banks; this means no-one other than ourselves can guarantee our holdings. If something goes wrong outside of a well-established exchange it’s unlikely you’ll see those funds again.
If you are looking to form a non-profit, they can benefit from a number of advantages and have a wide range of uses that go beyond the narrow definition and what are traditionally referred to as a not for profit organisation.
Additionally when incorporating in an offshore jurisdiction nonprofits have the added benefits such as higher asset protection, confidentiality and added tax leveraging.
The modern world is seeing a rapid shift in the meaning of privacy. As technology advances and world superpowers extend their surveillance systems across the globe, it has become increasingly difficult to maintain true anonymity. Offshore bank accounts are not exempt from this trend.
Recent decades have seen developments such as relaxed privacy policies in Switzerland and increasingly broad surveillance by the U.S. However, knowing some more about the limitations of privacy in offshore banking can help you make sure you keep your assets protected.
The US Constitution has jurisdiction over crimes committed in locations outside the country. Under specific circumstances, US courts can prosecute certain criminal acts even if the accused are not American citizens.
Several federal statutes have extraterritorial applications and can affect foreign citizens in overseas locations. If the US Constitution specifically states that a law applies to actions outside US territory, defendants can be prosecuted. Here are some of the situations that US jurisdiction covers.
Asset protection planning is a vital aspect of your personal wealth management strategy. Creating the protection plan to safeguard your wealth involves careful consideration of your circumstances and the tools which are available to you.
In this article, we will look at what asset protection planning is, why you need it, and the different tools which can be utilised.
There are a variety of reasons for which people and businesses would want to open offshore accounts with overseas banks. Some of these reasons include ease of use when traveling abroad, taking advantage of higher interest rates, or simply diversifying your assets to protect yourself from governmental bankruptcy.
Businesses also use offshore bank accounts if they have a global customer base and use an offshore merchant account or if they have formed outside of the USA and keep one in their local jurisdiction.
Starting a company in the USA is a great way to expand your business and take advantage of the opportunities that a US-based corporate structure provides.
Many want to know: Can a foreigner start a company in the US?
The answer is ‘yes’. You do not need to be a US-resident or citizen to form a company in the USA. Both foreign persons and foreign companies can form a US company, and get access to the even greater benefits that owning an offshore company provides.
For most of us who have lived all our lives in one of the many high-tax nations of the world, we simply take it for granted, without ever questioning the moral justifiability of taxation. In the US today, almost 40% of your income can be legally seized by the state in the name of taxation. The situation is as, if not more, bleak in many other developed first-world nations.
Proponents of taxation argue that it is a necessary aspect of funding the country, providing to the needy, creating social equality, infrastructure, etc. However, if one puts all these theories aside and looks at what taxation really is, it is easy to see why some political philosophers and libertarians have held the view that “taxation is theft”.
Untangling Offshore Financial Centres in the UAE
The United Arab Emirates (UAE) has become an attractive option in which to conduct business, due to the Free Economic Zones that offer a number of advantages to individuals and companies seeking confidential and tax-free opportunities.
In the UAE, there are two offshore jurisdictions:
- Ras Al Khaimah, commonly referred to as RAK Offshore, under the jurisdiction of Ras Al Khaimah Investment Authority (RAKIA)
- Dubai Offshore, under the supervision of the Jebel Ali Free Zone Authority (JAFZA)
Thirty-eight Free Zones are offered by the seven Emirates in the UAE, with twenty-two in Dubai alone. Each zone is managed by a Free Trade Zone Authority that caters to a diverse range of business sectors and activities.
Asset Protection Trusts, though seemingly complex, offer arguably the highest level of asset protection of any of the financial vehicles available. It is important to choose the right Asset Protection Trust type and structure to maximise the benefits available.
An asset protection attorney is someone who assets you in putting together an asset protection plan that works for you and your unique situation.
Why Offshore Companies are for Everyone
In the wake of the Paradise Paper leaks, there has been a public outcry in response to the revelation of documents connecting high profile figures and companies with offshore accounts in low-tax jurisdictions.
Though the Paradise Papers revealed no illegality, governments and the media have criticized those named in the documents accused of safeguarding wealth overseas to avoid paying higher tax rates.
Those named included the Queen of England, members of the US and Canadian Governments and Apple amongst others.
Exploiting the public’s desire for sensationalism the media has continued to portray offshore banking and finance as a shadow world of illicit underground dealings failing to recognize that it provides a necessary service that enables and supports the globalized economic structure providing many services for industries across the spectrum.
Irrevocable trusts are a special type of trust which cannot be modified, amended, or canceled, except under specific conditions. They contrast with revocable trusts, which can be changed or terminated by the grantor.
This means that once you, as the grantor, transfer your assets into an irrevocable trust, you relinquish all control and ownership over them. It also means that once you name the trustee and beneficiaries, and set the terms and conditions of the trust, it is fixed.
Irrevocable trusts have their benefits in the form of greater asset protection and tax efficiency. However, there are also some disadvantages of an irrevocable trust.
Special needs trusts are set up to benefit persons who are minors, mentally/physically disabled, or suffer from long-term illnesses that render them unable to carry on fiduciary activities.
These trusts provide a way to protect assets and can be seen as “asset reservoirs.” The disabled person may receive an inheritance or an accident benefit settlement, or contributions from well-wishers.
Government programs are designed for people whose income is too low to support their needs. Hence, a person with a disability who has an income above the specified limit will not be eligible to receive these benefits.
The differences between a Limited Liability Partnership and a Limited Partnership
There are a multitude of offshore products and jurisdiction all offering a dizzying array of possibilities and locations with a wide range of products and characteristics.
While many company formation vehicles often appear similar each have their own unique attributes that can support the proper growth and protection of a business depending upon its specific needs and circumstances.
Within Europe, the United Kingdom (UK), remains the most sought after jurisdiction due to its location, opportunity and reputation.
The UK offers several company formation vehicles: the UK Limited Liability Partnership (LLP) and the Scottish Limited Partnership (SLP) are two such options that give clients a wide range of possibilities.
Not all Limited Partnerships (LPs) are created equal
A Limited Partnership (LP) is a hybrid structure that enjoys many benefits due to its flexibility to be used in many forms and for virtually any purpose, that become popular over the last thirty years due to its tax transparency, separate legal personality, and its ability in taking on limited partners.
The NZLP is a relatively new structure taking form in 2008 through the New Zealand (NZ) Limited Partnership Act; though it is often viewed as having more restrictions and requirements than many ‘traditional’ offshore structures it makes up for it in its respectability and reputation
When it comes to working out your trust and estate administration with your estate planning attorney, the earlier you do so, the better. Taking care of such affairs first can give you a sense of freedom and relief even if there is no urgent reason to do so yet.
Since you are likely to think more clearly when not under pressure, planning presents several benefits for you and your beneficiaries. Regardless of the assets involved, estate planning is a gracious and loving legacy to leave your surviving family members. No matter if you have plenty of cash in the bank, a huge house or a large business is immaterial.
Protecting your assets is an essential part of a wealth management plan. Asset protection is primarily done by creating an entity or structure that has a legal status.
There are a number of estate planning options available, choosing the one that will best suit your needs can get overwhelming.
In this article we will try and mark out some of the main differences between a will and a trust to see what may be right for you.