There are many reasons why individuals decide to look for an offshore solution. Whether its because they've decided to internationalize their assets, secure their family's future, are looking for an offshore banking alternative, or are pursuing an international business opportunity, there are never a shortage of offshore opportunities.
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Similar to on-shore business entities, offshore company formations reap much of these same benefits, along with some other unique offshore advantages including:
Offshore strategies aren't about tax dodging and keeping money from the government, its about harnessing international opportunities that support your business and financial situation.
Local laws in jurisdictions other than your own, may provide a more supportive alternative, so why not take advantage of those opportunities if they are made readily available?
The only thing keeping most people away from this possibility is the lack of opportunity and information. Unfortunately, there is a lot of disinformation about the offshore financial system that has created a twisted view of the market.
With the constantly changing nature of the financial and business markets there are always new ways of using offshore structuring as an effective tool in many industries.
The constantly evolving nature of the offshore industry reflects the changing needs of the individual - the offshore system is a result of those needs.
Like regular onshore company structuring there are literally limitless ways offshore entities can be used, some of which include:
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The offshore market is not merely limited to multi-national conglomerates but rather can act very similar to traditional onshore business structures.
The difference is that offshore companies exist in low-tax low-regulatory environments different from many traditional Western high-tax high-regulatory jurisdictions. Offshore industries tend to exist in a regulatory system that highly values and protects the rights of the person.
While regulations do still exist they support financial markets rather than restrict. Having a legal and corporate environment that encourages financial investment and growth is why countries like the BVI, Bahamas and Panama have hundreds of thousands of registered offshore companies despite their relatively small size.
The Offshore Advantage comes only with a properly arranged offshore formation structure that is ideally spread across multiple jurisdictions using multiple offshore entities. Appropriate structuring, such as pairing a Nevis Company together with a Belize Trust creates a multi-layered arrangement that twice removes the owners name from being personally identified with the assumed assets.
Multi-layered offshore entities are a more recent creation that has been used largely as a response to the changing nature of regulatory practices such as the Controlled Foreign Corporation (CFC) and OECD tax laws that have been enacted by many countries seeking to get individuals to report worldwide income. We are not however, advocating a means to avoid reporting your worldwide income, what we are offering is a space where confidentiality and asset protection is ensured.
To get around many of these meddling pieces of legislation an individual can either find a jurisdiction that has not signed many of these treaties, such as Seychelles or Panama, or pair a Foundation or Trust together with an IBC, together using third-party director nominee services for an added layer of security and protection.
Having two structures in two different locations gives you literally twice the protection as it forces would-be creditors the trouble of having to go through two different regulatory jurisdictions neither of which share tax-information and who do not recognize foreign originating court orders.
The heart of any offshore asset protection solution will use different types of corporations, foundations and trusts as a way to insulate the original owner from the assets and make it difficult for a creditor attack your assets. These various types of legal structures separate the different legal entity and separate from an individual.
In certain jurisdictions such as Panama, Belize, Nevis and others, laws have been created to enhance the characteristics and features of a corporation to the greatest extent possible (the same also applies to foundations and trusts). As an example see Panama Corporation for further details on the flexible features of these types of companies, known as International Business Corporations (IBCs), which makes their operation convenient and effortless.
So that the entity or entities created do not appear to be an individual’s alter ego, certain minimum standards must be adhered to in the set up of the structure, as well as its operational characteristics. Where applicable this may include the use of nominee directors and third party shareholder solutions.
The complication starts for most people because they are either a resident in a high-tax country and not able to move to a low/no tax country and do not want to renounce their citizenship. At the same time, they wish to set up a business, invest, or engage in another type of financial activity in a low tax jurisdiction using one or more tax-free structures with the use of an offshore bank or brokerage account to assist in that endeavor.
The problem is that most high-tax jurisdictions want to tax you on your worldwide income regardless of where and how it is earned; there are all forms of policies and pieces of legislation in affect that force you to report your ownership interest in foreign companies and structures, for the purpose of not only taxing that income stream, but to tax it on an accrual basis, even before any of it has been repatriated home.
Proper Offshore structuring using either a International Fiduciary structure or combining and pairing different Foundations and Trusts together with an IBC effectively gives you the advantage of reducing your tax burden as the company or Foundation used to hold your assets can be held by a second IBC which gives you the ability of keeping your assets separate from your household or primary revenue stream.
For more information please see Offshore Tax Reduction.
Whatever the business need there is an offshore solution. Offshore-Protection provides services and company solutions for those looking for an alternative to the traditional business model.
1. Looking to take your business online or needing a high risk merchant account system for payment transfers? We provide the necessary E-commerce systems necessary to get you fully location independent.
2. Perhaps you are wanting a strong and resilient multilayered offshore entity structure that keeps you at arms length away from its management? An Offshore Fiduciary Structure maybe what you are looking for as it ensures asset protection and confidentiality.
3. What if you need a pre-existing company for immediate use, an entity that has all the paperwork completed and yet has never been used? Then have a look at the possibilities afforded through Shelf Corporations.
Offshore E-commerce solutions is for a company that buys, trades, or receives goods and transactions worldwide looking to take advantage of its non-localized structure for a globally minded alternative business structures. Companies that do business in many countries primarily online and are looking to get the most out of whats available in the international company marketplace should look at an e-commerce paired with an offshore IBC company.
Creating an offshore e-commerce structure is easy, reliable, and inexpensive. It gives many opportunities such as lower taxes, mobile domicile, non-localized business opportunities, and an offshore merchant accounts system.
For more information go to Offshore E-commerce Solutions.
An Offshore Fiduciary Structure is a combination offshore structure that pairs an International Business Company (IBC) together with a Foundation and our Professional Management Services. This type of global vehicle creates a resilient offshore structure that can be tailored to suit your personal needs giving a high level of freedom, privacy and security.
See more at Offshore Fiduciary Structure.
An offshore shelf corporation is a ready made corporation. This quick offshore alternative gives an individual a company that has been kept in good standing since its formation, has never started its business operations and is immediately ready to be used.
There are a number of reasons why you might need a shelf corporation. See Offshore Shelf Corporation.
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Threats to Your Assets
Global Diversification Planning