Offshore Limited Companies

The principle factors that are defining the growing demand for offshore services from both individuals and corporate entities are risk management, tax minimization and cost reduction.

With global political and economic instability our clients need not only to minimize their tax burden but also to protect and preserve their assets and investments; for this reason management of risks has become as important motivation for going offshore as international tax planning.

Tax rates have always varied from country to country, that is why there has always been an incentive to live or work in the areas of lower taxation.

These are the political and economic factors influencing the growth of the offshore industry:

In addition to these factors, there are also global tax related factors that continue to influence the growth of the offshore industry:

The most popular jurisdictions, by the amount of companies incorporated, are Delaware and the BVI. An increasing number of countries are offering a tax haven for companies based in high tax areas, if they move their legal identity to their low tax jurisdiction. This not only saves the organization tax, but it also ensures that the 'haven' country gets both a revenue from registration fees and employment and income for its citizens. There are now about 40-50 different offshore jurisdictions, each of them offers different companies but all of them have the same objective – to attract international business by way of offering a low or zero taxation from which to trade.