Property Ownership Company	Offshore Investment Company
Offshore Employment Company	Offshore Trading Company
Offshore Holding Company	Personal Holding Company

The common characteristics of an offshore companies are low or zero tax afforded by the jurisdictions with stronger privacy laws than their onshore counter part. Paradoxically the word “offshore” has also become associated with onshore tax havens and financial centres such as Dubai, Monaco, Liechtenstein, Luxembourg, Hong Kong, Panama and a cluster of jurisdictions in Caribbean.

Tax mitigation, although an important factor, should not be the main consideration as there are legal, administrative and fiscal reasons when structuring offshore. We recommend clients carry out extensive research and obtain independent tax advice in the country where the subject is resident. For example, the United Kingdom has the highest number of double taxation treaties in the world as well as the lowest corporation tax and some states in the United States, such as Delaware and Nevada offer some the world’s largest and most popular offshore financial centres.

All offshore company formation and banking is facilitated in our offices worldwide and under strict confidentiality. We provide support and guidance to enable our clients incorporate offshore.

As with United Kingdom companies, a limited company is a separate legal being or entity from its directors and shareholders and therefore any liability or loss incurred by the limited company is claimable from the company, its assets and share capital and not the assets of the shareholders or owners. Offshore companies provide same level of protection as well as privacy. Please click on the company formation jurisdiction below or follow the underlined link if you require Limited Company Formation service in the United Kingdom.

Offshore companies provide same level of protection as well well as privacy. Please click on the company formation jurisdiction below.

In tax haven jurisdictions the profits of an offshore company will be usually be tax free. Business owners resident in high tax jurisdictions may use a zero tax offshore company and accumulate profit offshore. Profits may be allowed to roll-up so tax advantages may be gained on investment income as well as the original profits. Cumulative profits can therefore be substantial.

Payments repatriated to the high tax country of residence by company directors and shareholders are taxable at the rates of shareholder’s/director’s home country.

Anti-avoidance legislation in their country of residence may also need to be considered in the careful planning and structuring of an offshore company. We advise all clients to consult with their professional advisers in their country of residence on such matters. Our offshore company formation services are ideal for trade, tax mitigation and asset protection.

Privacy


Property Ownership with an Offshore Company



As an Investment Vehicle


Employment Company - Professional Services


Offshore Trading Companies

Offshore companies engaged in international trade (import or export, for example) may well use an offshore company to take orders but arrange for delivery to be made from the point of manufacture or purchase. Profits on the transactions may thus be accumulated in the offshore company incurring low or no tax.

Business Holding Companies

If a holding company is situated in an offshore jurisdiction which is free of income and corporation tax, and where dividends need not be paid, the subsidiaries of the holding company can benefit from the profits accumulated in the tax free jurisdiction because they may be invested or used to fund the subsidiaries.

Personal Holding Companies Offshore

If a person owns a number of assets in several different countries they may consider holding these through a personal offshore holding company. This would give the individual privacy and, upon demise, probate may only need to be applied for in the country where the offshore company is incorporated rather than in each country where the assets are situated. The arrangement is discreet, simplifies the administration of the deceased’s affairs and saves legal fees. The individual may also wish to establish a trust to hold the shares of his company, so that upon his death the benefits of his assets may seamlessly devolve to his heirs with no inheritance tax (depending on the jurisdiction).

Holding company for Intellectual Property, Copyright, Patents and Royalties

It is possible for offshore companies to be assigned or purchase the rights to use and to sub-license patents, copyright and intellectual property. Consideration to the value of the asset at time of transfer should be given; an established patent would be more valuable than a patent at patent-pending stage so would cost the company more. Royalties may derive from a high-tax jurisdiction and may be subject to withholding tax at source. Such taxes may be reduced if paid to a company in a tax-free jurisdiction.

The Purpose of an offshore trust or Foundation

A trust or foundation may be used for a variety of personal, estate, financial, tax and business planning objectives, and is often utilized in combination with an underlying offshore company. The objectives may include:

Protection of assets from future personal liability
Tax Planning - minimising estate/inheritance, capital gains and income tax.
Provision for spouses and other dependants, especially those who may be unable to manage their own affairs (young children, the elderly, the disabled or sick).
Efficient and timely distribution of assets upon death

• Confidentiality
• Avoiding forced heirship
• Preservation of family wealth
• Continuity of family business
• Ownership of assets and investments
• Establishing pensions or employee stock option plans
• Protection of lender in corporate financing transactions
• Creating or making provision for Charities.

The Structure of a Trust

A trust is a legal relationship (originally developed under English Common Law) whereby a person (hereafter referred to as the Settlor) gives property (the Trust Fund) to professional administrators (the Trustee(s)) to hold for the benefit of certain persons (the Beneficiaries). Many Trust arrangements also include another person, known as the Protector. What must be clearly understood is that for a Trust to be valid, all assets settled into a Trust are no longer the property of the Settlor, are no longer under his control and he will not be able to reclaim them.

The Trust arrangement is encapsulated in a written instrument known as a Trust Deed. The Settlor (who may also be a beneficiary and a co-trustee of a Trust, but not sole beneficiary and sole trustee) indicates to the Trustees how the assets would have been handled had he/she maintained control of them, and this letter is known as the Letter of Wishes. Though not legally binding upon the Trustees, the wishes are usually followed except where a change of circumstances makes it clear that to do so would not be in the beneficiaries’ best interests. The Trust Fund may be any property (cash, personal effects, real estate, securities, other tangible and intangible assets).

Trustees have stringent duties imposed upon them by law and are obliged to administer the Trust in such a way as to safeguard the best interests of the beneficiaries. The Beneficiaries may be individuals, companies, groups, charities, etc. The Protector, usually at trusted friend or adviser of the Settlor, (but may also be a committee or company) is sometimes appointed to ensure that the Settlor’s wishes are honoured by the Trustees.

The above is just a brief overview of the subject. Much will depend on the jurisdiction where the trust is to be established and the particular circumstances of the person or company concerned. For detailed guidance browse our tax books section.

Banking Introduction Notice
Non status business bank accounts offer high acceptance ratios for people with poor or adverse credit record and history But are not guaranteed. Clients who require guaranteed bank accounts should read the offshore bank account section.