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Offshore company formation and trusts

An offshore company is one which is incorporated outside the jurisdiction of the beneficiaries, often for tax planning purposes or to take advantage of the confidentiality which another country offers. Offshore companies are the preferred company structure to achieve anonymity and privacy protection, keep all business details confidential and combine all this with limited liability and tax exemption.

What are the main reasons for establishing an Offshore Company?

  • Offshore company formation:
  • - Nominee directors and officers can allow conducting business transactions while maintaining anonymity.
  • - Legal tax savings across Europe
  • - Fewer disclosure requirements for your company
  • - Greater competitive advantage for your company
  • - Protection of assets from creditors
  • - Possible savings on future inheritance taxes
  • - Filing first position liens against assets and property closing the door to predatory litigation before it begins.
  • - Segregating high-risk investments from other holdings.
  • - Protecting retirement funds from possible bankruptcy.
  • - Accessing funds with corporate debit or credit cards thereby maintaining absolute confidentiality.

In addition, there are several other advantages one should take into consideration:

  • 1. Property Owning Companies
    There are often significant advantages in using an offshore holding company for the purpose of holding property. The advantages of such an arrangement include the avoidance of inheritance tax, capital gains tax and the ease of sale which can be achieved by transferring the property owned by the company and reduction of property purchase costs to the onward purchasers.
  • 2. Employment of Expatriate Staff
    Expatriates working overseas can frequently benefit from being employed through an offshore employment/consultancy company. This can avoid tax being deducted at source. By not remitting the full salary it can minimize tax and avoid exchange control difficulties in the country of temporary residence.
  • 3. Investment Companies
    Offshore jurisdictions are typically less invasive allowing for aggressive and unrestrained free enterprise. Funds accumulated through investment companies set up in offshore areas can be invested or deposited throughout the world. There are a number of offshore areas in which funds may be placed as bank deposits where the interest and/or the capital gains are paid and kept gross.
  • 4. Copyrights, Patents and Trademarks
    Offshore companies can purchase or be assigned the right to use copyright, patent or trademark. Royalties can then be accumulated offshore although often royalties may suffer withholding taxes at source.
  • 5. Consultancy, Professional Services, Agency
    Professionals, consultants and many self-employed individuals can gain substantial advantages by working as employees or as external consultants of offshore companies, of which they may be the sole shareholders if not the sole directors.