Offshore - from English offshore - "offshore', 'out of bounds'.
Prices for offshore companies can be found here. We work with agents all over the world.
This is one of the most effective tax planning methods. The basis of this method is the legislation of some countries, partially or completely exempting from taxation companies owned by foreign persons, that is, in the language of tax officials, non-residents.
Offshore company is a legal entity that does not conduct economic activities in the country of its registration. The owners of these companies are non-residents of these countries. That is, they do not live in them and do not conduct any economic activity there.
Such companies are allowed in countries where there is very low taxation or none at all. In some countries where there are no taxes for such companies, there is only a fixed annual fee, which is no more than 500 - 700 dollars per year.
Offshore companies - are very common. The owners of such companies from dozens of countries have long realized their advantages. The number of offshore companies is several hundred thousand. Economists predict that this number will triple in just five to six years.
By creating an offshore company, its owner can quite strongly, and most importantly, legally, reduce the amount of taxes of his other company, a local one. As a result of the interaction of a local firm and an offshore company, it is possible to practically eliminate income tax payments and significantly reduce social and income tax payments.
You can register or buy an offshore company (the equivalent of a Limited Liability Company or Joint Stock Company) in several dozen countries.
What schemes can be used with offshore companies?
Scheme No. 1. Keeping money.
You have a certain amount of money. You want to store them in a safe place. You want to have quick and easy access to them. At the same time, the political regime should not interfere with you.
We need a good bank - in a country with a stable policy and a reliable economic situation.
Imagine if you open a bank account in your name. Why would someone control your financial flows? There is a very high possibility of violating the confidentiality of account ownership. Your personal credit card will give away your fortune.
Opening an offshore company is one of the best options in this case. Here you will be a director, you will manage the account of an offshore company, but no one knows that you are the owner. In all countries where offshore companies exist, disclosure of information about a company and its owners is punishable by law.
The most popular in this case:
Bahamas, Panama, British Virgin Islands.
Scheme No. 2. Expanded business.
Your company conducts foreign economic activity, you need to optimize taxes, simplify document flow, speed up financial flows and ensure their reliability, protect yourself from the arbitrariness of fiscal authorities. An offshore company is a way out that will solve many problems. It acts as an intermediary between your local company and the seller (buyer) with whom you conduct your international business.
To conduct trading operations, experts advise opening companies in jurisdictions that have an agreement on the avoidance of double taxation with our country.
Scheme No. 3. Import.
Example. To import, say, some production line and not pay for customs and VAT, you need to purchase this line for an offshore company and contribute it as an authorized capital to a joint venture. Another option is leasing this equipment for the company. That is, you can pay interest on leasing abroad.
Offshore companies can be used for many other schemes. Their main advantage is ease of operation and great savings of your money.
Recently, the purposes of using offshore companies have changed somewhat. So, if earlier offshore was necessary mainly for the export of capital, now it is a fairly effective tool for stabilizing payments, regulating the price of export-import contracts, self-financing, selling copyrights, paying for foreign exchange contracts, leasing equipment, hiring personnel, supply of tolling raw materials, purchase of real estate abroad, as well as investment and speculative activities in the global financial markets.
A very interesting approach using an offshore company from Philips. The company opened an offshore as an insurance company. The whole trick is that in this offshore company, representatives of Philips insured everything that was possible, even such trifles that no insurance company in the world can insure. As a result, businessmen receive money as compensation for insurance.
In which countries can you register an offshore company?
There are more than 70 countries in the world where you can register an offshore company. The legislation of these countries provides for tax incentives for offshore companies.
The most famous of them: Panama, Gibraltar, Cyprus, Bahamas, Ireland, Liechtenstein, the US state of Delaware.
It is conditionally possible to divide the countries where offshore companies are registered into several categories:
1. Small states, islands with a low level of development of their own economy, but with a fairly high political stability (Bahamas, British Virgin Islands, Vanuatu, Seychelles, etc.).
As a rule, these states do not impose any reporting requirements, the only requirement is to pay, as a rule, an annual fixed fee to the treasury. Usually in such countries there is no register of shareholders and directors, the confidentiality of owning such a company is very high. Typically, such companies are used as a safe and for financial transactions.
2. States where, in addition to offshore companies, there are ordinary (onshore) companies that may be owned by non-residents, but if they conduct business activities within this country, they may lose their preferential tax-free status. In order to prove that the company did not conduct such activities, usually in such countries it is necessary to undergo an annual audit and submit reports. On the part of the governments of these states, control is stricter than in the previous case, a register of directors and shareholders is maintained, but the prestige of companies is much higher. These are Cyprus, Ireland, Gibraltar, Luxembourg, Switzerland, the Isle of Man, etc.
3. Not offshore countries at all, but even the opposite, but if you behave there correctly, you can work in a quite decent company and pay very little. These are the USA, Great Britain, Canada, etc. In these countries, everything is open, taxes and fees must be paid, registers of directors and shareholders are maintained. However, there are organizational and legal forms that allow you to exist quietly, paying only fixed fees. Such companies are suitable for both running a solid business and simply storing money.
We would like to note that many novice businessmen do not quite correctly interpret the term tax-free zone. For example, you are located in the Republic of Moldova and believe that by registering a company in a tax-free zone, for example, in Belize, they legally receive dividends and income. Yes, from the point of view of an offshore country, you absolutely legally benefit. However, it should be borne in mind that the legislation of Moldova obliges the resident to pay certain taxes in case they are received abroad. At the same time, businessmen simply do not report their sources of income and use special nominee services.