What is an offshore company ?
February 18, 2016
The term “offshore company” is used to entitle a certain type of business organizations. These companies don’t differ much from conventional concept of a corporation but stand out for low income tax or its absence, absolutely high level of confidentiality, simplified reporting and accounting systems and ease of creation.
Such business organization is widely used by investors as well as by international and transnational corporations’owners. They play a big role in the world’s economy facilitating international investing and business conducting.
There is no difference between an offshore company and a corporation when speaking about organizational structure. These both are types of performing commercial ideas within a legal framework having its own missions and purposes as well as strategies and assets serving to reach these goals. Such companies are authorized to own real estate, securities, intangible assets and other property, enter into agreements, interact with customers, suppliers and partners, generate revenue, borrow funds, and so on.Both pass through life cycle stages starting from birth and ending with renovation, merge or liquidation.
So what are the distinctive features of offshore companies? Offshore company’s an organization created in an overseas jurisdiction providing tax and other benefits. If the company doesn’t reach tangible tax relief or high level of confidentiality while being incorporated in the overseas jurisdiction it is called onshore.
There are numerous advantages which business people get when offshoring their companies:
- Opportunity to get exempt from income tax and to have minimum tax deductions
- There are no requirements concerning annual reports provision and bookkeeping
- Opportunity to have nominee directors and shareholders and to avoid real owners’ public appearance
- It can be registered without the owner presence and during a very short time
- Guaranteed confidentiality and bank secrecy
- Assets are safely protected
- Registration in economically stable country
- No minimum start-up capital
- Opportunity to have a virtual office
- Access to bank accounts offshore
Offshore company as a way of optimal and profitable business setting is extremely popular nowadays. It is organization created in an overseas jurisdiction providing tax and other benefits such as confidentiality, economically stable country of registration, virtual office, minimum tax expenses and unnecessary start-up capital. Setting up an offshore company means profit maximization, ability to conduct lucrative transactions, having the performance worldwide and simplicity of organization and maintenance.