Benefits of Using Offshore Companies

Benefits of Using Offshore Companies

The offshore company formations are primarily done to take advantage of the tax situation in a country. These countries may charge very little or nothing in terms of tax. There is no need for an offshore company to have any other business in the country. You may have an offshore bank account as well. The kind of offshore company you would want to start and invest in depends on the regulations in the country you select. The most common kind of offshore companies are limited or international companies. The determining factors for selecting the country of operation should be the advantages offered by the country to setup business. After this you may take tax advice and other help from professional companies that specialize in offshore company forming services. You may want to acquire an existing company in the tax heaven. In any event it is important to learn about the services offered. This is the fastest way of setting up any international offshore business company.

Benefits of Offshore Companies  

Legal Protection

This is usually the first reason for even considering an offshore company. Most business operations associate the business assets to a certain name normally the proprietor’s. This however is not so with the offshore company. And the advantage is that the assets are immune to law suits and other legal procedures. Many companies have in fact started offshore companies for asset protection from frivolous law suits.

Tax Benefits

Potential tax savings on offshore companies are massive and depending on the jurisdiction of the business these savings can be substantial. In many cases there is no tax at all. You need to perform the necessary research for this however and the exact benefits will vary from the jurisdictions of various countries. In case a company is structured properly, registering the offshore company is an effective strategy for entrepreneurs that are running international businesses.

Privacy

The level of privacy that is offered by the offshore business cannot be enjoyed in case of normal businesses. It is difficult to determine company assets let alone keep them anonymous. This anonymity factor often desired desperately by companies can be achieved through the offshore business.

Low Capital and Operations Requirement

The capital required for registering this kind of company is quite small and normally much less than the onshore companies. The cost of operation for the offshore company is usually less than the normal onshore company. The needs for a physical office, bookkeeping and other staff are considerably reduced. You can also use virtual office services provided by the specialists.

As many countries are offering incentives for attracting foreign investments, there are a host of options available to the entrepreneurs such as Belize, Hong Kong and Singapore. These tax heavens offer friendly business environment for the investors and they are both politically and economically stable.

CGT Freeze For UK Employee Ownership Schemes

UK Chancellor George Osborne has announced plans for a scheme under which tax-exempt shares will be made available to new employees in exchange for the forfeit of redundancy and unfair dismissal rights.

Osborne intends to introduce a new “employee-owner” type of contract, available to companies of any size, but principally intended for fast growing small- and medium-sized enterprises (SMEs). Under the contract, employees will be given between GBP2,000 (USD3,200) and GBP50,000 of shares. These shares will be exempt from capital gains tax (CGT). Employee-owners receiving full CGT relief on the shares awarded will still be eligible for existing employee share ownership schemes such as the Enterprise Management Incentive.

In exchange, employees will have to give up certain employment rights. These include their rights on unfair dismissal and redundancy, and the right to request flexible working and time off for training. Female employer-owners will also be required provide 16 weeks’ notice of a firm date of return from maternity leave, instead of the usual eight.

Both established companies and new start-ups can choose to offer only this new type of contract for new hires, while employee-owner status will be optional for existing employees. Companies recruiting employee-owners will have the option of inserting more generous employment conditions into the employment contract if they wish.

The government will consult on some details of the contract toward the end of October, and will introduce legislation later this year. The intention is to make the employee-owner contracts available from April, 2013.

Belize In Bond Chokehold, Nears Default

The government of Belize confirmed on August 20 that it is was unable to find USD23m to pay creditors a scheduled coupon payment as part of a USD544m bond deal negotiated prior to the financial crisis, which as of 2012 pays a yield of 8.5%.

While Belize has a comparatively low fiscal deficit, expected to rise to 2.5% of gross domestic product this year, from 1.1% in 2011, the bond was negotiated based on substantially higher pre-crisis interest rates. Under the 2007 deal, which was negotiated to service half of the nation’s debt, the coupon rate increased from 6% to 8.5% this year, and is due to mature in 2029.

Under a first proposal with creditors, Belize has been said to be offering 20 cents on the dollar, substantially lower than that offered following Argentina’s default in 2001, and in the Greek bailout, which offered around 30 cents on the dollar. The Belize government has said however that it is committed to meeting with creditors to find an amicable solution to restructure the debt under more favourable terms. Parties to the deal must do so within a 30-day grace period, starting August 20, 2012, or Belize will default on the bond.

Each of three scenarios proposed by the Central Bank extend the bond’s maturity period to at least 2042, or as late as 2062. Those options proposed to expire in 2042 would involve a 45% ‘haircut’, with either a set 3.5% coupon throughout, with a five-year grace period, or a gradually-increasing coupon rate starting at 1% and rising to 4% from 2026. The other option involves a 2062 maturity date, a 15-year grace period and a 2% rate but no principal reduction.

NEW Service 

Digital point forum is one of our main markets for offshore bank account services dedicated to the online industry.

We are able to introduce you, or your company to a range of offshore banks. Some of these are listed below.

• LGT Bank in Switzerland – (private banking for long term asset protection and accumulation)
• Nordea Bank, Denmark – ( Everyday business banking over the internet )
• Bank Of Cyprus (BOC) – ( Everyday business banking over the internet )
• First Caribbean International Bank – ( First class business banking over the internet)
• Rietumu Bank, Latvia – ( Excellent Corporate and Private individual Banking)

All the offshore banks that we work with now provide easy to use online facilities and can be opened, once correct ID is submitted, within 3 to 4 working days.

Benefits of Using Offshore Companies

Benefits of Using Offshore Companies

The offshore company formations are primarily done to take advantage of the tax situation in a country. These countries may charge very little or nothing in terms of tax. There is no need for an offshore company to have any other business in the country. You may have an offshore bank account as well. The kind of offshore company you would want to start and invest in depends on the regulations in the country you select. The most common kind of offshore companies are limited or international companies. The determining factors for selecting the country of operation should be the advantages offered by the country to setup business. After this you may take tax advice and other help from professional companies that specialize in offshore company forming services. You may want to acquire an existing company in the tax heaven. In any event it is important to learn about the services offered. This is the fastest way of setting up any international offshore business company.

Benefits of Offshore Companies  

Legal Protection

This is usually the first reason for even considering an offshore company. Most business operations associate the business assets to a certain name normally the proprietor’s. This however is not so with the offshore company. And the advantage is that the assets are immune to law suits and other legal procedures. Many companies have in fact started offshore companies for asset protection from frivolous law suits.

Tax Benefits

Potential tax savings on offshore companies are massive and depending on the jurisdiction of the business these savings can be substantial. In many cases there is no tax at all. You need to perform the necessary research for this however and the exact benefits will vary from the jurisdictions of various countries. In case a company is structured properly, registering the offshore company is an effective strategy for entrepreneurs that are running international businesses.

Privacy

The level of privacy that is offered by the offshore business cannot be enjoyed in case of normal businesses. It is difficult to determine company assets let alone keep them anonymous. This anonymity factor often desired desperately by companies can be achieved through the offshore business.

Low Capital and Operations Requirement

The capital required for registering this kind of company is quite small and normally much less than the onshore companies. The cost of operation for the offshore company is usually less than the normal onshore company. The needs for a physical office, bookkeeping and other staff are considerably reduced. You can also use virtual office services provided by the specialists.

As many countries are offering incentives for attracting foreign investments, there are a host of options available to the entrepreneurs such as Belize, Hong Kong and Singapore. These tax heavens offer friendly business environment for the investors and they are both politically and economically stable.

Need for Opening an Offshore Bank Account

Need for Opening an Offshore Bank Account

Once upon a time the offshore bank accounts were considered as illegal shelters for tax evaders and money launderers. However people have realized that the offshore bank account has more to do with international money management. However, what is the need for opening an offshore bank account? Offshore bank accounts as stated earlier are not illegal and just a different account structure is offered by leading national and international level banks along with finance houses. In its simple form the offshore bank account is a mirror of the normal current account utilized daily.

Safety

Generally, people who live overseas in another country which has unstable political and economic conditions, opt for offshore accounts as this allows them to hold their money safely away from an unstable jurisdiction. So even the person’s country of residence undergoes devaluation of local currency, inflation, political coup, their money is safe in a secure offshore account in a safe country. The advantage is also there for people working in unstable environment.

Flexibility

The benefit can also be obtained by people who work in more than a single country or travel constantly. So basically anyone who needs international flexibility will benefit from the offshore bank accounts. When in case you are paid in one currency, have financial debts in another currency back home and the transactions you make on daily basis are in still another currency, a multi currency offshore bank account will be particularly useful because it will save money exchange costs and transfer fees. A tax advice from an expert will clear things up.

Privacy

Another reason to opt for the offshore bank account is when you are living outside your country and keep your financial plans and business to yourself. The offshore account offers greater privacy and you are under no obligation to bring the money in. It can be kept safe and hidden.

Other Benefits

A hugely experienced advantage of offshore banking account is that they come with many whistles and bells making the account holding safe and secure. One can obtain a relationship manager from the bank who will ensure that the money is handled in a secure and beneficial manner. Or you are offered some free benefits like lounge access at an international airport. You may also be able to link this account to an offshore saving account which will allow some gains in terms of interest earned.

Summary

Therefore, in case you are an international citizen and require privacy, flexibility and generally a good deal on your bank account, a very good option is an offshore bank account. You can research for various options on internet to decide the most suitable one for you. Offshore bank accounts are also useful in the process of offshore company formations.