Offshore company is a company that is setup in a totally different country where the company is founded.
Throughout history, people migrate and moves to places where there are ample of opportunities. This happens with business world as well. Offshore company is a great way where people can expand their business and to route their profit to somewhere with more efficient tax rates or treaties and free from government interference. These days offshore company formation can be do online without ever need to visiting the country where company is formed.
Here are some advantages of having offshore company
Offshore banking account
Could you be certain that economic situation is constant in your country ? America is one of the highest debt country in the world where debt ceiling is raised every year. According to research, most ultra rich networth diverge their assets to several countries as risk protection measures. Having your cash parked in several offshore countries is one safe way to protect yourself.
Dont put your eggs in one basket
Having multiple income sources help. During the 2008/2009 American Subprime crisis , things are not so bad in emerging economies in Asia. This is also true during the Euro 2012 crisis where situations arebooming in Asian and Emerging countries. Having access to these economies help as protection for a companies revenue growth
With the rise of Internet business, you can enjoy locating your company to a place where the tax structure benefits your business the most as market restrictions are lifted. This steps has been taken by large Internet companies around the world to place their business in countries that has more competitive tax rates.
Setting up an offshore company with assets also double as insurance production. Situation may arise where a company may face legal issues or may be forced to closed down. Having an offshore presence meant that the overall of the company is protected from such risks.
Regulation and interference
Sometimes a country may change it’s law and regulation thus this may effect conditions. Business thrive with less interference and bureaucracy. Moving entity to a country with lax regulations means that a business can focus on it’s core competencies away from government’s interference.
Fees and charges
These days setting up an offshore company is relatively cheap. Among the fees that may incur are One time setup fees and Annual recurring fees.