Why you should go for offshore company formation
In general, Offshore Companies – also known as International Business Corporation (IBC) – are defined as corporations or limited liability companies incorporated outside of one’s country of residence. The most popular destinations for such offshore company formation are the notable tax havens including British Virgin Islands (BVI), Marshall Islands and Seychelles. AsiaBiz, your one-stop Singapore corporate service provider, offers offshore company registration services to help you set up your company in all these jurisdictions.
Benefits of offshore company formation
The most notable advantages are ofcourse, asset protection, business expansion, and financial privacy. But there are other benefits as well, including massive tax savings (that’s why these jurisdictions are called tax havens), lawsuit protection, international financial diversification, and confidentiality. There are no exchange controls, and you are faced with minimum red tape. Generally, these jurisdictions have no capital gains tax, no wealth tax, and no gift tax. The laws in these jurisdictions are hugely favorable to the protection of ownership, and directorships of companies.
Some other nuanced benefits of offshore company formation would be: transfer of company assets to one jurisdiction making it simple to control, reduce company’s admin expenditure, manage the company’s tax obligations when engaged in several overseas projects, protect investments in countries facing volatile political and economic climate, as well as maximise profits from business franchising and licensing.
Although it must be noted, that calling these jurisdictions tax havens is actually a misnomer. Everything that happens is under the aegis of their corporate taxation laws, which are so implemented to encourage companies to incorporate and move their business there. Thus a more correct term is tax mitigation and planning.