What is an offshore company?
An offshore company is a company located in a foreign country than the one in which it operates. The interest of an offshore company is in receiving the tax benefit of the country in which it is situated, while continuing to do business with other countries. However, it can not engage in any activity in his country because it may be considered as “resident company” and be taxed more.
What are the advantages of an offshore company?
An offshore company can increase profits, because it is taxed less (or nothing). In addition, administrative procedures, in particular accounting, are often lighter and more flexible. The offshore solution also offers good privacy and anonymity for the management of the company.
What is the best destination for an offshore company?
There is not only one good answer to this question, since the choice of the jurisdiction of destination depends on many factors, in particular the activities they will be carried out. However, in a general framework, it is always advisable to chose a jurisdiction with good infrastructure, an economy and a stable political system, a tax system beneficial to the company’s business and a good reputation internationally.
An offshore company means no taxes?
No, create an offshore jurisdiction does not involve the systematic absence of taxation for businesses. While many countries have in fact tax rates to 0%, some are simply low-tax. Others may also require for example installation costs or rents municipal.
What is the difference between shareholder and director?
Both of them have important positions in a company, but still quite different. The manager is the one who manages the company, making decisions and signing contracts. It’s possible to have different directors, who may be individuals or companies, which typically are elected by shareholders. The latter however are those who own the company: there can be only one shareholder or more shareholders. Shareholders may be natural or legal persons.
Can a person be a shareholder and director?
Of course, this is possible and most jurisdictions accept it. In a more general context, it is very common to have a company with a single shareholder, who is also the director
Who can benefit from an offshore company?
The establishment of an offshore company can meet several customer profiles and serve for different types of activities:
Creating an offshore company allows him to start a business without having to worry about setting up a complex structure. An offshore company allows you to quickly create a stable structure, with streamlined administration and to enjoy the benefits of the offshore jurisdiction.