Offshore Company Incorporation – The Real Beginning of Success
The term ‘Offshore Company’ is commonly used to refer to a company that is registered in a country other than one’s home nation. Typically, the term is used in cities or islands like Belize, Seychelles or Hong Kong.
Reasons to Go Offshore
People who prefer going offshore surely have their own set of reasons. However, here is a list of some of the key benefits of offshore company incorporation on a very general note:
In most cases, offshore companies refrain from paying any kind of local taxes on profits earned from operations generated outside the jurisdiction of company formation. For example, an offshore Hong Kong company is mostly unlikely to pay taxes on the income derived from operations generated outside of Hong Kong. Moreover, onshore companies need to bear the expenses of complying with relevant filing requirements, which are often not required in case of offshore incorporation.
Registrars in most offshore jurisdictions keep from revealing information regarding directors, beneficiaries and shareholders of offshore IBC companies. Hence, the ownersor administrators of such undertakings may carry out all relevant transactions under the name of an offshore company while remaining anonymous. It must be noted, however, that this rule applies to legitimate operations only.
Asset Protection Reasons:
There are many offshore jurisdictions that are well-known for their beneficial asset protection laws. When an offshore company is integrated with favorable offshore banking facilities, the company’s assets are protected even better.
In comparison to companies registered in onshore jurisdictions, the compliance reporting requirements for offshore companies are much more limited. Most offshore IBC companies do not need to file annual reports and accounts in the jurisdiction of their formation. Instead, they are merely required to pay a flat annual license fee to local authorities, which is almost insignificant compared to reporting expenses and taxes in onshore jurisdictions.
Low Operating Costs and Fees:
Lack of compliance costs, accounts and audit costs along with limited compliance reporting requirements help offshore companies enjoy lower maintenance and operating fees compared to onshore ones.
Why Choose Hong Kong Offshore Company?
Here is a brief guide to why it is often suggested to select Hong Kong as offshore company:
- Under Section 5 of the Hong Kong Company Law, Hong Kong offshore companies aregranted the permission to perform a lot of activities like manufacturing, trading and consulting, without requiring special licenses.
- The tax system used in Hong Kong is simple and beneficial. It doesn’t incorporate value added tax (VAT), bank interest tax, dividend tax and capital duty tax.
- Hong Kong implements territorial tax system, which means, the offshore profits earned from business done outside Hong Kong are legally tax free. This system also applies to directors as well as their employees whose fees, benefits and remunerations are paid for work outside Hong Kong.
- Because Hong Kong is strictly a legal place, falling under the framework of UK legal system, it is a safe and appropriate place for Asset Protection.
- Owing to being an international financial center, it is remarkably easy to open banks for a Honk Kong company in any corner of the world. Countries all over the world are willing to open banks for a Hong Kong company.
Get in touch with a reputed company offering offshore company incorporation services to obtain detailed information about the process. However, before you get into business with a company, make sure you research the market well and find the one having the best reviews.
Offshore companies are mainly used for:
Offshore trading company
Intelectual Property Company
Services and consultancy company
Offshore Tax planning
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