The definition of an offshore company is a company which rarely conducts business in its country of incorporation and one which is incorporated in a country where taxation is lower and reporting restrictions are more flexible than the country in which you reside.
Other common names for this type of company are ‘non-resident company’ or ‘IBC’.
IBC stands for ‘International Business Company’ or ‘International Business Corporation’
There are many features and benefits associated with the establishment of a non-resident company, and different individuals and organisations have their own specific reasons for incorporating in this way.
However, five main benefits are,
1) Reduced Taxation Liability - Offshore companies can be established in low or no tax jurisdictions.
If you do not derive a profit from the country in which the company is incorporated you may be able to reduce your taxation burden significantly.
In fact, some businesses can be structured in such a way that that any profits generated are realised in ways that minimise or negate overall taxation liability.
2) Simplicity of Operation - apart from certain types of business - like financial services companies and banks for example which are internationally regulated - certain jurisdictions make it very simple and highly attractive for all other types of company to operate.
It does depend a lot on the jurisdiction you favour, but you’ll find that when it comes to business reporting, account auditing, filing of financial records etc., the restrictions are likely to be far less than you would experience if you incorporated ‘onshore’, or ‘back home’.
3) Fewer Reporting Requirements - not only are the restrictions actually far less restrictive, you’ll generally find that the extent to which company information is required to be reported is generally far lower in most offshore jurisdictions as well.
4) General Asset protection - it’s possible to manage assets and business transactions in such a way that assets are shielded from any form of liability.
5) Greater Degrees of Anonymity - by conducting business through the offshore company and carrying out all transactions in the name of the private company, the name of the underlying principal of the company can be kept out of certain key documentation.
While there are many companies offering complete company formation services there are few that provide customers with the professional support they need to find the company structure that is right for their individual and business needs. The Wealth management team at Henderson Morgan, with over 20 years of experience can provide a comprehensive wealth management service to clients wishing to form an IBC. Please contact us at advisor@henderson-morgan.com for a free initial consultation.
