Reasons to setup an offshore company
BENEFITS OF SETTING UP AN OFFSHORE COMPANY
Minimising taxes and increasing confidentiality are not the only benefits of setting up an offshore company. Although tax effectiveness is the first and foremost benefit that comes to mind when considering offshore companies, the opportunity to considerably reduce business overheads is also a very attractive bonus.
Here are the some of the benefits of osetting up an offshore company:
Registering an offshore company, like an IBC, can legally minimise the tax obligations of a business and this is often the primary reason for incorporating a business offshore. Non-resident companies are tax exempt in the Seychelles. However, corporate taxation matters can become very complicated and it is very important to be guided by an experienced professional. Ensuring that there is no conflict with the tax obligations in the country or jurisdictions where the business operates is essential.
Non-resident companies in the Seychelles are not required to publish financial information or the details of directors and shareholders. The Seychelles authorities will not reveal any of this information to any third party unless criminal or terrorist activities are suspected.
The legal obligations of any directors or officers of an offshore company are much less. The need for accounting, other staff or a physical office can also be overcome with cost-effective virtual office services – saving time and money.
For those with international business interests, an offshore company can be valuable as a vehicle for holding assets such as intellectual property or real estate investment.
Lower set up and maintenance costs
Even with increasing anti money-laundering measures being applied and enforced to block funding for terrorism and prevent the proceeds of criminal activities from being hidden, the process of setting up an offshore company can be relatively fast and simple. This can translate into lower costs in both the establishment and maintenance of an offshore company.
Lower capital requirement
Registering an offshore company will require minimal capital, usually less than what is required for an onshore registration. In Seychelles there is no capital needed for registration.
Setting up an offshore company does not have to be complicated and can provide many benefits for individuals or companies involved in business across international borders.