Setting up an offshore company is a no brainer for many, and offshore company formation does indeed offer a wealth of benefits. For instance, you might be interested in setting up an offshore company to take advantage of better tax rates, for financial privacy, for asset protection, to place your investment funds in tax-neutral areas, to take advantage of better economic and financial environments, and to avoid paying capital gains taxes. All of these are perfectly reasonable and plausible reasons why you might consider offshore company formation.
If you are considering offshore company formation, then you’ve probably weighed the options. You could pay an agency to do it for you, which could cost more than you are comfortable spending at the moment, or you could try to do most or even all of the work of setting up an offshore company on your own.
While setting up your own offshore company might seem like a great deal - after all, you’re saving a lot of money this way - all that glitters isn’t exactly gold. Setting up an offshore company can be highly beneficial for your asset management strategy, but don’t let cheap offshore company formation tempt you. Yes, you can try your hand at setting up your offshore company or you can even pay one of those “cheap” agencies to do it for you, but what will you truly gain? To answer that question, we’ll tell you what you stand to lose.
4 Reasons Going Cheap is Not a Good Idea
Here’s why you should avoid cheap offshore company formation:
1. Are You Missing Out on Consultation?
When you decide to do it yourself, and even when you choose a cheap service to do it for you, you won’t get a professional consultation. The value of consultation is immense. If you miss out on advising on what’s legal versus what’s not, you could be facing a wealth of penalties and fines down the road. By missing out on best practices, you could be missing out on hidden savings. A cheap consultancy could steer you wrong - some won’t even ensure that you’re fully compliant. Paying for the consultation can save you money in the long run!
2. Cheap Agencies Often Have Misleading Pricing
Yes, it might look good at first, but those cheap services often cost more over time. While you might have a cheaper upfront cost, cheaper offshore company formation agencies often charge per additional item, and this adds up. In some cases, it would simply be cheaper to stay onshore. If you’re serious about taking advantage of offshore company formation, make sure you steer clear of cheap agencies and misleading prices.
3. The Dangers of DIY Might Be Worse Than You Realized
The person you want to set up your offshore company is ultimately going to be someone who has experience in international law, and that person is probably not you. The truth of the matter is that you need to know international laws and regulations to set up a successful, legal offshore company, and since regulations are always changing, it’s even more imperative to get a professional on your side. Offshore banking, taxation, and offshore company formation are always changing in terms of laws. If you aren’t an expert in international law, then trying to set up an offshore company yourself could prove to be disastrous for your finances.
4. Don’t Believe Everything You See Online
You can go search for “DIY offshore company setup” right now and find a plethora of results, but how many of these can really help you? The truth is that most of them can’t help you. In fact, many of these results you’ll see are nothing more than scams, and many of them are also filled with inaccurate and outdated information. There are many things you can DIY with the help of the internet, but don’t let offshore company formation be one of them!
Takeaway
Perhaps the biggest misconception is that setting up an offshore company is cheap. Going offshore is a solid asset management strategy, but it’s not going to be cheap. Yes, it can be cheaper than one might think, but there will be a cost.
As with many things, you are going to get what you pay for.
If you’re serious about creating an offshore company as part of your asset management strategy, then be prepared to pay a professional. No matter why you’re interested in creating an offshore company, there are professionals out there who can offer you the best advice and offshore company formation services - and you won’t have to worry about what you could lose down the line due to oversights.
With the new understanding of what to expect from a service provider, you can learn more about the offshore possibilities based on your unique financial situation and plan by contacting us for a free consultation, with no strings attached.
FEB
2020
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