Offshore companies, a topic well discussed lately, mainly with the news related to companies in tax havens.
But is it illegal to have companies in other countries? what are the advantages of having offshore companies.
See the advantages of having an offshore company.
What are Offshore Companies?
First thing you should be thinking that companies in tax havens are illegal, or they are built for illegal purposes.
Well many companies are totally legal, as long as the company’s prescription comes from legal money.
Usually these companies have tax advantages, ie they pay few taxes or virtually nothing tax depending on the jurisdiction.
There is the much talked about name of tax havens, because they are companies that are not taxed.
Having an offshore company is very interesting for your long-term financial planning.
Why open an Offshore company?
There are several advantages of having a company located in tax havens.
Companies to control their investments, or succession planning, have some trade abroad, have real estate in other countries etc …
Receiving payments in multiple currencies, the conversion from one currency to another is very low.
There are many advantages to having an overseas company in a tax haven.
If you have desire or already have some business online and want to get out of the high tax burdens of your country.
It would be very interesting to open an offshore company and with an account abroad see some banks on our page.
Usually the taxes on a company in tax havens are almost nil, this is a great advantage for your online business.
For example we assume that you own a tourism agency in your country and that 70% to 60% of the payments received in currencies USD, EUR, CHF etc …
It would be much more interesting to open an offshore company, and direct these clients from abroad to the offshore company.
In this case you win in two things: currency conversion and company profits without taxation.
And leave the company that is in your country only as an affiliate or subsidiary of the company from abroad.
The advantage is that as long as the profits remain inside the company, they remain tax free and can be invested again or distributed.
Recalling that the profit distributed by companies will be subject to recovery if it resides in a country where such tax is charged.
Investment company and personal accounts
Another advantage for us investors is in the tax side.
As a company located in tax havens does not have taxation, this brings less headache in the income tax return.
This is for Buy & Holder investors as well as traders mainly in the forex market.
For the profits of these investments are no longer subject to the taxation of the country of origin.
Also interesting for entrepreneurs, owners of several companies or real estate, having an international holding company in a tax haven, avoid the high costs of buying different currencies.
Offshore companies are ideal for buying apartments in other countries, as well as ships, yachts, etc …
You use a company to register on various sites: Shopping, Hotels Passage, etc …
This increases your confidentiality and you do not need to spread your personal data over the internet.
Protection and Inheritance
Protection against confiscation, governments etc … is another interesting point to take into account.
If your assets are in your country it will be easier for the government of your country to confiscate some of your assets.
It does not cost to remember the time of the Collor, who lived in that time knows how it was.
We can look at Venezuela’s economic collapse that is taking place today.
Those who kept part of their assets abroad are doing very well today.
This can happen in any country, in Brazil even they were wanting to tax even in the financial transactions.
In the case of succession the heirs beneficiaries will be free of the inheritance tax levied by some countries.
Types of Offshore Companies
There are several forms of companies abroad, but I will show the most used.
International Business Company – IBC
Is the standard type of overseas companies, has directors, shareholders, registered capital, is an international enterprise standard.
It is a company totally separate from owners and owners.
The requirement of the balance sheets is minimal, it depends a lot on the jurisdiction where the company was opened.
Low cost and fast business registration.
Usually, you may not earn income from the country you reside in.
Limited Liability Company – LLC
The LLC is a type of partner company, generally formed by more than one member.
Each shareholder receives a portion of the shares and is less bureaucratic the transfer of shares, as well as the type of shares.
It is not necessary to have directors, generally one of the members acts as responsible.
It is a much more flexible company, the members decide how the company will be.
Since LLC very complicated and far from standard, the company may have difficulty explaining itself to a lender when applying for a loan as well as attracting more investments.
Usually they are a bit more expensive than the IBC.
It also can not issue shares on any stock exchange.
Trust is the formation of a more complex company.
They are meant for those who already have good money and want to leave it protected by an agent.
Usually applies a lot of inheritance not letting the children end up with all the equity.
The rules of the trust are made direct with the intermediary agent, he who will manage his assets.
How to Create an Offshore Company
To open a business in another country, you need to hire an international agent.
I will leave the link for some companies that works with offshore companies.
Remembering that it is not recommended, it is up to the reader to evaluate one of his / her preference.
Most jurisdictions do not pay taxes, prices vary from country to country.
It is up to the reader to evaluate which one appeals to you the most.