An offshore company is a business entity that is registered in a foreign jurisdiction, typically for the purpose of minimizing tax liabilities or gaining other financial advantages.
Offshore company setup can be complicated and time-consuming, but it can also provide significant advantages to businesses that are willing to make the effort.
Advantages of Setting up an Offshore Company
The Tax Perspective
Setting up an offshore company is popular because it can help you pay less in taxes. Business owners are always seeking to minimize their taxes, and this area of their enterprise can become the most onerous. Many beneficial owners use offshore companies as holding companies, for example, to receive dividends.
Import and Export Benefits
Offshore companies can also profit from importing and exporting goods within an offshore location. In this case, the company would directly receive orders from the customer and then ship the goods from the manufacturer. The profit from the trade would be either tax-free or minimally taxed. It is important to choose a location with good shipping facilities when choosing a jurisdiction.
Promotional Aspect
For small businesses struggling to make their mark in the industry, incorporating an offshore company can be a viable solution. This gives customers the impression that your business is located overseas. Having a registered office in an area that is attractive or popular can also help with marketing and advertising.
What are the key considerations for an offshore company setup?
The complex and legally challenging task of setting up an offshore company includes several steps. The key ones are:
a) Feasibility study
b) Land acquisition
c) Legal compliances
d) Banking and Finance
e) Vendor selection and management
Industry Expert’s experienced advisors will be there for you every step of the way.