By and large, there are two main purposes of offshore company registration:
The first goal is to optimize taxation. The desire for a comfortable tax climate is a natural desire of any business.
The second goal is to protect assets and privacy.
Both goals can be completely independent of each other.
Many offshore companies are actually registered not in order to minimize taxation, as is commonly believed, but solely for confidentiality reasons, in particular, to protect against raider takeover.
The main advantages of using offshore companies are as follows:
- complete absence or minimum level of taxation;
- withdrawal of funds abroad;
- confidentiality of data about the directors and shareholders of the company;
- asset protection;
- simplicity and flexibility of the offshore registration procedure: no requirements for payment of the authorized capital, minimum requirements for directors and shareholders, fast incorporation procedure, etc.;
- ease of managing an offshore company: shareholders' meetings can be held anywhere in the world, including by electronic means, which ensures a flexible decision-making process;
- lack of reporting - no audits, no tax reports, the company's financial information is not publicly available;
- the possibility of opening an account in most banks in the world, avoiding currency control and transaction passports;
- acquisition of real estate for offshore companies in order to hide the true owners;
- the sale of the entire business as a whole occurs by transferring the shares of the offshore company to a new owner.
All of these goals can be solved with the help of offshore companies, however, all goals cannot be solved by only one company. To achieve the goals, it is necessary to build a multi-level structure of foreign companies.
In general, offshore is an economical and convenient business machine that provides a full-fledged process of conducting international trading activities. According to research, today more than 70% of enterprises use offshore companies in their activities, and their number is only growing every year.
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