Offshore Incorporation

Offshore corporations are non tax companies and as a result have less tax obligations than ordinary domestic and international companies. Offshore incorporation is done on the understanding that revenue earned by the offshore company is generated in another jurisdiction or country, and that the members (including shareholder and directors) are exempted from withholding tax on dividend, interests or royalties. Offshore incorporation allows business owners to look into various tax efficient strategies that strengthen financial standing while maintaining taxes at low or acceptable levels.

An amazing trend has been how second citizenships are being utilized to get friendlier business climates for international investments. Owners of offshore corporations that hold dual nationality have an advantage over many who don’t. The former are better able to get funding and various trading platforms, and with Dominica citizenship are better able to undertake multi-jurisdictional tax planning. So much can be gained from foreign companies in the broader sense of wealth management. Smart asset management and tax planning is an essential ingredient of any international entrepreneurial venture. Accessing international investment vehicles is also relevant and is a key to success where business owners with dual nationality are concerned. Many benefits can be derived from foreign companies; to include special trade and low tax regimes from various jurisdictions.

As a service, incorporation offshore is always provided by an agent. It is standard in all offshore jurisdictions for agents or corporate service providers to be licensed. In most jurisdictions, agents must be resident and licensed.

Asset protection is a central theme in offshore incorporation. Because of the constant threat that wealth is placed under from creditors, disgruntled customers or ex spouses, offshore incorporation has become one of the strategies used for protecting assets. Incorporation offshore creates the possibility of transferring all or a certain portion of assets overseas, under the jurisdiction of a different country. Offshore incorporation is the formal process for forming an international business company (IBC), an offshore limited liability company (LLC) or offshore limited partnership, which are different legal entities with distinct features. Although offshore LLC’s and IBC’s have proven to be reliable asset protection vehicles, very careful planning and structuring must be done if using an offshore limited partnership to protect assets.

Offshore incorporation is one of the ways by which individuals and corporations have been able to achieve privacy when carrying out their affairs. Privacy is often critical in wealth planning for the simple reason that it is not always possible to trust anyone when dealing with certain matters. Offshore incorporation for privacy is one of the ways of ensuring that certain plans do not get thwarted and that desired results are obtained when looking for ways and means of protecting one’s wealth or increasing it. Offshore incorporation is important in this regard and the details of incorporating offshore does not necessarily have to be shared with anyone. To obtain assistance and guidance when dealing with such much matters, it is always important to seek the advice of a legal practitioner, tax planer or business expert, as well as that of a business associate or colleague.

Offshore companies are ideal for international trade and business. Thanks to offshore incorporation services, companies and individuals are able to pursue their trading activities in different territories and regions. Offshore incorporation is important for corporations that intend to be accepted internationally as international business companies or offshore LLC’s, and more yet, to operate as such as tax exempt companies. Offshore companies are legal persons and are thus able to function independent of their owners. Offshore incorporation has influenced economies on a global scale and is thus an activity that has solicited the scrutiny of international organisations and governments. Incorporation offshore permits local companies to expand, obtain quicker and cheaper access to raw materials and labor, gains access to more sources of financing and investment possibilities.

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