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The point of setting up an offshore company is that the company is taxed in the tax jurisdiction of the offshore country of its choice, saving a considerable amount of income. It is not a scam, it is not a \"loophole\", it is a way for anyone to take advantage of the opportunities offshore offers.<\/p>\n
The main condition for the establishment of an offshore company is that only the founder or group of founding members transfers their assets to the chosen country, i.e. the economic activity of the company - i.e. production, sales, purchases - is not carried out in the territory of the offshore country. So the offshore company is only domiciled in the territory of the offshore state. Thus, the offshore company and the company incorporated in the foreign country are not the same; the offshore company is a completely separate company, governed by a separate legal regime. As such, offshore companies can enjoy the benefits of the country's tax regime.<\/p>\n
The main advantage of offshore incorporation is that in most cases, offshore companies in these countries are not subject to corporate and other taxes, but only to a minimum annual fee.<\/p>\n
Another important argument in favour of offshore incorporation is that it is legally simpler, but at the same time regulated. Administrative processes are shortened. No unnecessary paperwork. There are different expectations of offshore companies in these countries. Most differences are in the provision of data and the availability of company information. But these countries offer much more favourable conditions for offshore companies than for local companies.<\/p>\n
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The most popular offshore countries, the so-called \"tax havens\", are Anguilla, British Virgin Islands (BVI), Belize, Dominica, St. Kitts & Nevis, Seychelles, Panama, Cyprus, Gibraltar, Jersey, Liechtenstein. These examples show that there are potential locations all over the world - in the Caribbean, the Americas, Europe or the Indian Ocean - where offshore companies can be set up.<\/p>\n
The first and almost most important step in setting up an offshore company is to define how the company will operate. This is important to ensure that the company is registered in the most ideal location for tax, legal and confidentiality purposes.<\/p>\n