Why incorporate offshore?

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.

What is an offshore Trust

An offshore trust is created when assets are transferred to a trustee. The trustee becomes the legal owner and is responsible for managing the assets and distributing them to the beneficiaries of the trust, which could include the person or corporation which transferred the assets to the trustees, in accordance with the terms of the trust deed.

The following assets can be held by an offshore trust
Shares and stocks in both quoted and unquoted companies.
Investment portfolios.
Real and intellectual property.
Bank deposits.
Life assurance policies issued on the life of the Settlor.
Most other types of asset
There are many advantages to offshore trusts,
Privacy many trust deeds are not publicly registered.
Wealth protection.
Tailored to specific family requirements.
Recognised in all common law jurisdictions.
Increasing recognition in important civil law jurisdictions.
An important tool in international income, capital gains and estate tax planning.
Used by corporations for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements.

Talk to our team at Henderson Morgan, advisor@henderson-morgan.com for a free consultation to see if an offshore trust is right for you, your family and business.

A Brief Guide to Asset Protection

1. Do Something Now. It is harder to protect yourself after a liability has been incurred, long term planning is the key to asset protection.
2. Liability Insurance is your first line of defense, buy every £ you can afford whilst assuming that it won’t work so you have a back up plan;
3. Use Incorporation as a liability firewalls. Always divide and segregate your personal & business assets (and liabilities) as much as possible. “
4. Don’t assume that incorporation will afford you complete protection. If you own it, run it, control it, it can be argued that it is still YOU;
5. Get professional legal & accounting help to organise your assets and make sure you maintain the legal formalities of these entities like tax returns, meeting minutes and separate bank accounts or they won’t help at all;
6. Get your vehicles out of the name of your business. Many people do this for the deduction. If you or your spouse injures someone with your car you have created a “bridge” to your business and all it owns. Take a vehicle allowance instead;
7. If you have employees get professional employment manuals, policies and dispute resolution agreements in place. A small investment will cover your business and family for years. You are five times likely to be sued by an employee than anyone else;
8. Be nice to everyone as a rule. During difficult economic times people are much more likely to take legal action, whether justified or not. Your bedside manner will play a role in their emotional decision to sue you;
9. Don’t keep too many eggs in one basket. Don’t use a single limited company, for instance, to own separate assets like 3 different rental income properties with high equity. An injury or exposure at one property or business places the owner, the company and its assets potentially at risk;
10. Own Nothing, Control Everything. You don’t need to keep assets in your own name to use, control and enjoy them. Make use of trusts, corporate shells and the law to transfer title to assets away from you.
Henderson Morgan’s Wealth Management team has over 20 years of experience of working with clients to protect their assets and grow their wealth please contact us at advisor@henderson-morgan.com for a free initial consultation.

Borrowing against your offshore assets

The global economic downturn has made credit difficult to obtain.

If you have offshore assets how do you maximise these to secure short/medium term credit without divesting your wealth.

There are a wide range of options available internationally and the Wealth Management professionals at Henderson Morgan can help you secure effective and efficient credit simply.

Contact advisor@henderson-morgan.com to discuss your options further.