Company Formations Offshore – When, Where, and Why
No company formation or business strategy is quite as misunderstood and misinterpreted as company formations offshore. Too many people associate […]
No company formation or business strategy is quite as misunderstood and misinterpreted as company formations offshore. Too many people associate this completely legal and reasonable business step with criminal activity. The truth is that only a very small percentage of offshore companies are actually involved with anything even remotely illegal or immoral. UK businesses elect to form companies offshore to take advantage of legal, confidentiality, tax, and efficiency issues that they could never enjoy if operating in a traditional manner. Understanding the basics of the process will help you understand why forming your own offshore company may be among the best options available to you today.
There are many different factors that will influence just where you decide to locate your company formations offshore. Hong Kong, Singapore, and Dubai are the three most common locations for offshore companies and the exact location will depend largely upon just what type of company you’re setting up and why you want to use an offshore location. They offer a great business location, tax incentives, and a solid infrastructure for those looking to set up offshore companies. Certain tax breaks or other issues will be more advantageous for certain business types in each location, and an expert can help you make the right call.
Tax incentives are the main reason that so many organizations opt for company formations offshore. Many areas offer tax breaks or rates that are far more advantageous than those in the UK. While your personal income drawn from the company will be taxed locally, your offshore company will have a bank account in the country it is based in which will use the tax laws of that country. This can save untold sums of money and is completely legal so long as you take care to follow the proper steps in both countries, which will vary depending on location and business type.
It’s also much easier and quicker to complete company formations offshore. Plenty of countries are more than willing to accept foreign companies since it brings in business to the location. In short, it’s a win-win situation for all parties involved. If you’re thinking of setting up a business and want to take advantage of the best tax options, confidentiality, and asset protection available, then going offshore is likely to be your very best bet. Take the time to look into it and speak to a professional, and you won’t regret it.
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