An offshore company is a company that is set up in a different country from the country of residence of the stakeholders, and it’s usually meant not to do any economic activities in that particular country. For example, suppose your business operates in America. Setting up your legal business structure in Cyprus but maintaining your operation in America, as well as doing business activities in countries other than Cyprus, allows your company to enjoy the benefits offered by Cyprus (e.g., tax exemption, banking benefits, etc.).
Setting up an offshore company sounds complicated, but it worth the effort due to the benefits offered by having your company headquartered in an offshore jurisdiction.
The benefits in Africa
Opening an offshore company in Africa offers many benefits (subject to country). Some of them include:
- Progressive and flexible legislation that has evolved to meet business demands and to facilitate cross-border financing and investment transactions
- Effective and efficient exit strategies with the corporate flexibility occasioned by the legislation being ideal for initial public offerings, company sales, asset sales, and mergers and consolidations
- No filing of financial records, no auditing
- Acceptability of the governing laws of underlying contractual arrangements being governed by the laws of another jurisdiction
- Tax neutrality that ensures that multinational investors are treated fairly and equally
The Benefits in America and the Caribbean
The major countries where you can open an offshore company in America and the Caribbean include Anguilla, Belize, Cayman Islands, Nevis, and St. Vincent and the Grenadines.
These countries offer incredible benefits for offshore companies which include:
- Most of them offer zero tax regimes for foreign earnings, which protects the privacy of every inhabitant and investor, both national and international.
- They don’t force offshore companies to pay social capital.
- They are entitled to issue bearer shares without compulsory formalities or notarized deeds
- incorporation of the norms of the English law and local regulation in the economic milieu
The Benefits in Asia & Pacific
Asia and the Pacific are also an excellent location to open an offshore company. The region offers the following benefits:
- Lower tax liability with low personal and corporate tax rates. Also, no tax is imposed on capital gains, dividends, interest from deposits, imports and real estate income
- Liberal foreign ownership across all industries. Whether an individual or a corporate body operates a company. With this, foreign business owners can be rest assured in knowing that an Asian offshore company does not require approval from local authorities.
- Asia and the Pacific region also offer a wide range of banking facilities with access to multi-currency accounts
- Strong political stability is of core importance too
The Benefits in Europe
Europe is one of the core locations for an offshore company, and it offers these benefits and lots more:
- The European climate has a stable political climate that enhances the growth of businesses, thus making it a key location for the success of any offshore company.
- The region offers a low corporate tax rate with countries like Bulgaria and Cyprus offering 10% and 12.5% tax rate respectively and other great tax benefits for offshore companies
- Establishing an offshore presence in this region is easy with seamless company formation and bank account opening and operation – which can also be done remotely
- The legal system of most countries is favorable for offshore businesses