Offshore Advantages

More than 50% of the world's wealth is located offshore, individuals and corporations have been setting up offshore for years. There are many reasons why a person or an entity may wish to incorporate an offshore company and place assets offshore, and these reasons depend very much on the circumstances. Also, the amount paid for set-up and operating depends on the types and complexity of corporate entities.

Each offshore territory has its own characteristics. In most offshore jurisdictions companies conducting their business outside the country are not obliged to pay taxes. There are many offshore territories which are well regulated, politically stable and free from exchange control, attractive to people living in countries with political unrest, weak currencies and strict exchange control. Generally, the advantages of offshore activities depend on the basic characteristics of offshore territories, different corporate legislation, and taxation concepts.

Offshore companies usually pay a nominal tax or none of it, and take maximum advantage of offshore legislation that usually provides asset protection for companies and individuals, confidentiality and anonymity, minimum intervention of authorities, low or zero taxation , no control over financial transactions.

Offshore jurisdictions provide a tool for people to plan their financial affairs to preserve wealth and privacy, and reduce the risk of confiscation by the state or other institution. Offshore investors get more freedom than it is possible onshore. Some of them go offshore to simplify international trade, other persons and businesses still seek privacy, in contrast to zero financial privacy in Europe and America. Tax benefits that may be obtained very often include zero income tax, zero inheritance tax, and zero corporate tax.