The offshore services industry is heavily tainted by negative press portraying it as a mechanism for millionaires and billionaires to cheat on their taxes. The truth, however, is that an offshore company can be established for legitimate business reasons.
What is an offshore company?
Setting up an offshore company means incorporating a business in a country other than the one you currently reside. It does not have to be a tax haven. For example, if you lived in Germany, you could form a company in the United States, which would be an offshore company to you.
The mainstream media seems to have a field day with the offshore services industry (in particular, with tax havens) and only reports on them when a major tax crime is uncovered. Because these tax havens uphold anonymity, they have no recourse to going on the offensive in the media because calling attention to themselves and their clients is pretty much the exact opposite of their objective.
Why form an offshore company?
Several advantages can be realized when you set up an offshore company. The greater percentage of people drawn to offshore company formation are seeking greater privacy in their financial dealings, increased layering for asset protection purposes, and reduced tax burdens on capital gains.
Forming an offshore company DOES NOT preclude you from paying your fair share of income taxes in your home jurisdiction. The advantage of creating an offshore business is that once you have paid taxes in your home country and moved this money to an offshore bank account, your money can grow tax-free. In general, tax havens will not charge a tax on capital gains or tax foreign-derived income.
If you want to take your business offshore to enjoy complete confidentiality in your corporate affairs, get in touch with Liberty Enterprises today.
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