Over the past decade or so, more and more corporations, companies and entrepreneurs have formed offshore businesses. Although it has long been beneficial for companies to do this, it used to be a somewhat complex matter. However, more recently, many restrictions have been lifted which have made the whole process much easier. Nowadays, many people set up offshore businesses for a wide variety of reasons and much of this is done with the help of offshore company formation services.
One of the main reasons that people set up offshore businesses is for asset protection. Let’s take a look at how setting up an offshore company can help in this respect.
Many businesses/companies who seek offshore formation are originally based in so called politically unstable countries. In many cases it may no longer be economically viable for a particular business to operate in their country of origin. An offshore company formation service can help an individual, company, or small business legally set up a new base in a country where their business and assets aren’t at risk.
Lawful Tax Minimisation
Many so called offshore havens welcome businesses and have little or no tax laws. This is clearly of benefit to companies or individuals who reside in high tax countries and who are being crippled by heavy tax burdens. Therefore by setting up an offshore company in one of these jurisdictions, a business is able to lawfully minimise their tax burden.
Protecting Future Assets
The amalgamation and distribution of assets into offshore companies and foreign legal institutions can make it very difficult for any potential creditors to track down these assets. The old mantra of own nothing and control everything is the game plan of many a wealthy individual and not without good reason. Offshore company formation services can help to legally screen existing and future assets from prying eyes and as such, it’s easy to see why setting up a company offshore is a wise choice.
From a Legal Standpoint
From a legal perspective, if an individual or a company is being pursued, it would generally involve an asset search. This is to simply ascertain whether there is money to be paid out and can be easily found if the said assets are in an individual’s name. With this in mind, the way business formation companies operate is that when a company is formed, business owners are able to maintain anonymity. In many jurisdictions, company owners, board members and shareholders can be legally excluded from company documentation. This procedure is standard practice and by doing this, the process becomes a highly effective way of keeping company owners from the public view of legal opponents.
Reading the above, it becomes easy to see why offshore company formation is ideal for many people. It isn’t simply for FTSE 100 or Fortune 500 companies either. In fact company formation services have made it easy for any business large and small to form an offshore company and the benefits are there for all to see.
EBC Company Formation Services can provide businesses with expert advice on all aspects of company formation.