Offshore Main Features for 2016
March 5, 2016
We present to your attention the 5 fundamental offshore features for 2016. Read carefully and analyze banking directions and a specific character of company registration. This information will help you to choose the right strategy for your offshore business and avoid unexpected hardship.
Five offshore features with description
We have collected the top 5 offshore features for 2016 which you should know.
1. Offshore business increases
In fact, the number of offshore jurisdictions is extremely increasing. Now about 96 territories signed the information exchange agreement; in 2017 there will be added about 56 jurisdictions and more 40 in 2018. As a result, the area of offshore business will develop, and the quantity of owners which want to protect their assets will be wider.
It looks like “fair tale” when some owners incorporated company in offshore place and got a lot of profit owing to tax saving. But it is true and a common practice. For example, regional enterprises in Crickhowell (a small town in Wales, United Kingdom) operate in the off shore market with good success. Other great examples are Facebook and Starbucks which made multi-million dollar revenues. The government never will find solutions against super-low taxes.
2. Offshore businesses globalization
The reasons for creating an offshore company consist not only in reducing taxes but also in other advantages. Among them are investment possibilities, safety and security which you can enjoy. That’s why a lot of international owners set up companies in the offshore jurisdiction. For online companies it is the best place to provide business. The most popular jurisdictions for that are Hong Kong and Ras al-Khaimah.
This is really making a great value for online shops, e-commerce magazines and blogs. You can situate your business in offshore place, manage it from all over the world and don’t pay taxes and other typical expenses.
3. Convenient local banks maintenance
The IRS and other structures are changing offshore regulation rules from time to time and bank’s services need to correspond to these changes. It is really troublesome for banks to observe and control all modifications in bank standards in each country. More easy to concentrate on local clients and cover all their needs.
For example, offshore banks based in Hong Kong are providing services to Mainland China’s clients. The same policy acts in Singapore and other jurisdictions.
4. Good quality of international banks services
Commonly thought that it’s dangerous to save your assets on a stranger offshore bank in an unclear location. How to protect your personal information? Is it really safely and profitable? Make sure, this is true. The biggest banks with offshore divisions can propose to clients the better service, a lot of possibilities to invest money and strong safety policy. For instance, such banks as HSBC and Citibank guarantee the best services for your business.
But the bank size doesn’t play a critical role in choosing a bank for your assets. The most important are professional qualities and recommendations, experience and financial reviews, history and future plans. For example, services of private banks in Luxembourg, St. Vincent, Malta and in other places include a wide range of investment programs and assets management, commerce transactions, real estate purchasing, investing into securities.
5. New offshore markets in Central Asia and Africa
The famous market analyst Mike Ingram conducted research and found in some countries in Central Asia and Africa new offshore markets which can be new centers of offshore business. New centers appearance will have an influence on clients’ allocation and will change all market. It is an interesting question, can new offshore markets stand against OECD and satisfy demand or not?
If you are an owner of business, you should choose and make a correct decision regarding the offshore market for your business. Will it be a new market or a recognized market – it is your choice.
Thus, we have reviewed the top offshore features for 2016. There are a lot of advantages for small and big business but some difficulties exist too. If you know how to react to them – you will win. To examine and to understand how to play in the offshore market, contact your legal advisers.