New Business? Use An Offshore Company!

If you’ve ever heard of an offshore company, then you might be curious about what this means. Unfortunately, offshore companies have the false reputation of being tied to money laundering and tax evasion, as does all offshore banking. We know, however, that this simply is not true. In fact, launching a company offshore is just one way to plan better for financial purposes.

Just as with offshore banking, creating an offshore company isn’t for everyone, but it can be an excellent fit for a number of circumstances. In this article, we’re going to take a closer look at the reasons why you should setup your new business as an offshore company - and how to benefit from such arrangement.

Why?

There are many reasons why you should consider setting up your new business offshore. The following are the most typical ones.

1. Access to Resources

For starters, you might choose to establish your company offshore because it just makes better sense in terms of access to resources. These resources can vary from the entire infrastructure - one infrastructure might be more desirable for various reasons - to finding the right human resources. The right human resources could be more experienced in a specific offshore area, and human resources might also be more affordable for your startup.

2. Security and Privacy

Of course, that’s just the beginning. Offshore companies are also desirable if you’re looking for security and privacy. If you want privacy - for example, to keep your ideas away from your competitors - then an offshore company could be right for you.

One huge reason to launch your startup as an offshore company is for asset protection. If your home country is facing difficult economic times or rough political circumstances, you might recognize that your country’s economy isn’t as strong as you’d like. In offshore jurisdictions, however, you can find the stability you’re looking for. This stability can lead to an entirely better financial environment that spells out a better future for your startup’s finances.

3. New Investment Opportunities

With that said, when you choose to launch an offshore company, you can also likely take advantage of exciting new investment opportunities. Creating a startup as an offshore company can provide fast access to international markets for trading opportunities while also offering exceptional investing possibilities in everything from gold and other precious metals to real estate.

4. Fair Taxation

Perhaps the biggest reason why you would want to consider creating your startup in an offshore jurisdiction would be for tax purposes. Some offshore jurisdictions are extremely business friendly and as part of that, they offer favorable tax rates for companies. If you want to lower your taxes, then an offshore company could be the way to go.

How?

To get started with your offshore company formation process, you need to address the following first:

1. Your Goals

No two companies are alike, just as no two individuals are alike, and every startup must take into account their overall goals and what they hope to gain from their business structure. One of the biggest things to remember here is that your specific goals are going to help define what’s best for you, even down to the offshore jurisdiction you choose. Taking advantage of laws and taxes that are more favorable outside of your home country is only beneficial when it works best for you.

2. Look for the Right Offshore Jurisdictions

Once you’ve decided what you’re looking for - whether that’s a better tax rate, more privacy, or better access to investing opportunities - then you can start looking at offshore jurisdictions.

There are a number of offshore jurisdictions that are beneficial to offshore companies, and the laws do vary from country to country. There are some countries that stand out, however, if you’re looking to create a startup in an offshore jurisdiction. For instance, Belize, Singapore, British Virgin Islands, the United Kingdom, New Zealand, Nevis, and Hong Kong, should all be on your list of countries to consider.

3. Start the Incorporation Process

While you might be thinking that incorporating in an entirely different country must be a challenging undertaking, the beautiful part about this potentially life changing decision is that it can most likely be carried out online. Many countries let you go online to incorporate. All you need to do, in most cases, is choose your structure and jurisdiction, get familiar with the laws, find an online site, and submit your information. Then, in many cases, you can enjoy just paying taxes on what’s made domestically while keeping the rest of your capital offshore until repatriated.

To Conclude...

While it might seem like a small decision, the truth here is that creating a startup offshore can be the biggest and best decision you make for yourself and your company. By doing so, you can save on taxes, enjoy privacy, and get the most out of your money with better tax and interest rates and new investment opportunities. As with all financial decisions, do your due diligence to find out if starting up offshore is the right move for your company.

If you want to learn how to setup an offshore company for your new business - and where to incorporate yours, you can consult with us.