Creating an Offshore Company: A Beginner's Guide
- Author Earnest Leibermanso
- Published February 22, 2008
- Word count 645
If you have a substantial level of money to safeguard it may be to your financial benefit to set up an offshore corporation to protect your assets. Put simply, an offshore IBC is an IBC that is incorporated in a country other than the one it does the highest percentage of its business in.
There are many legitimate reasons to set up an offshore company but for many companies the main reason is to take advantage of tax laws that are more partisan than those in the United States. Setting up an offshore corporation is a great way to keep your taxes low and more of your company profits fluid. Setting up an offshore corporation does not alleviate the need to pay taxes in the country where the income was derived however.
The other benefits of incorporating an offshore company are; the ability to trade internationally, financial confidentiality, asset protection, business and land ownership in a foreign country, increased financial flexibility and privacy.
You may also find that offshore companies offer a higher quality of asset protection than setting up your company in the United States. In many offshore jurisdictions you can form an offshore corporation in such a way that your earnings are protected from future liability.
In jurisdictions such as Panama a person can incorporate an offshore company without using their real name. This type of arrangment can provide a level of privacy that is not possible in the U.S. system of business. This type of corporation is known as an anonymous bearer share corporation. In today's banking world very few places outside of Panama still offer and enforce, through banking secrecy laws, this level of privacy.
Business owners can also form an offshore company with a minimum amount of cash equity in the business. Different countries have different rules for this, but overall upfront costs are much cheaper to set up an offshore company in a jurisdiction like Panama as opposed to Switzerland for example. Each offshore destination should be carefully researched and an asset protection lawyer consulted prior to making a jurisdiction selection.
In addition to the benefits, there are some disadvantages to setting up an offshore company that you should be aware of. If you set up the offshore counterpart to your US company there is a very good chance you will not be able to claim employees on your US company payroll.
There may also be restrictions on the type of company that a person may form in certain countries. As an example; most countries will not allow you to open banks, insurance companies or other entities in highly regulated industries.
Another drawback of going offshore is the necessity of putting your estate through a protracted probate process if you die suddenly. Even if you have a will, foreign countries will still look over your business dealings with a fine tooth comb before they release your assets to your heirs.
There are many countries where you can incorporate an offshore company. Some of the most popular are; Switzerland, the grandfather of offshore banking, the Isle of Man, which has favorable tax laws, Singapore, which has excellent investment potential and the Republic of Panama which is extremely favorable to incorporated companies.
After a time, you may choose to move your company from one location to another. You must incorporate your company in a country that allows for this type of cross border movement and you must also move to a country that has laws favorable to a move. If you file the proper paperwork utilizing the services of an asset protection lawyer, you will not lose your incorporation charter, no matter how many different jurisdictions you move your offshore company to.
If you want to start an offshore company you need to research the jurisdiction in which you will incorporate and be comfortable with the advantages and disadvantages offered.
Find out more about offshore company formation and asset protection in Panama by visiting the author's website: http://www.offshorelegal.org/
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- How a Calgary Personal Injury Lawyer Can Maximize Your Compensation
- Navigating the Aftermath: Your Guide to Finding a Car Accident Lawyer Near Me with Karasik Law Group
- What to Expect from a Trademark Search Company
- Are You Unknowingly Signing Away Your Mechanic Lien Rights?
- The Role of Diplomacy in Unrecognized States: A Case Study of Somaliland
- Ontario’s New Homeowner Protection Act
- Why Nanda & Associates Lawyers Are the Top Choice in Brampton
- Essential Contracts Every Freelancer Should Have
- What to Do When Your Ex Violates a Custody Agreement
- How Houston Personal Injury Lawyers Handle Insurance Companies
- How to Prepare for Your First Meeting with a Personal Injury Lawyer in Orlando
- Best Books for Defense lawyer for Felony Robbery
- Establishing a Company in Serbia: A Guide to Business Ownership Types
- How To Get Compensation for a Work Injury
- Navigating Compliance for Personal and Professional Contributions
- Unraveling the Mysteries of Intellectual Property Law: A Comprehensive Guide
- Boston Car Accident Attorneys and Insurance Companies: A Complex Relationship
- How a Los Angeles Car Accident Attorney Can Help You
- Slip and Fall in Chula Vista: Who is Accountable?
- Can I Get Compensated After a Truck Accident in Los Angeles
- Local Tax Attorney vs Competitors: A Comparative Analysis of Legal Services in Orlando
- J. David Tax Law: Your Top Tax Levy Lawyer in North Carolina
- Who Can Garnish Tax Refunds: Your Questions Answered
- Unlock the Secrets to Handling a North Carolina Notice of Deficiency
- The Importance of Financial Services: Enabling Debt Management and Legal Debt Settlement
- Justin C Freeman
- What are the Eligibility Criteria for a Spouse Visa? How to find right Spouse Visa Attorney in Houston?
- Importance, Benefits, and Tips for Hiring a Houston Immigration Attorney
- Importance and Tips of Hiring a Houston Immigration Attorney
- The Importance of Protecting Whistleblowers