Reasons to Use an Offshore Company for Business
Contributed by CG Bank
07 March, 2019
Despite what the mainstream media would have you believe, there are numerous legal and legitimate reasons to use an offshore company.
1. Financial privacy and safety
You should recognize that financial privacy and safety are important.
What many people don't understand is that privacy isn't always an issue of wanting to hide your money. And this is yet another issue with moralizing offshore activity. Just because something can be used for immoral ends does not make it immoral by default.
2. To meet legal requirements
A common reason to set up an offshore company is to meet the legal requirements of the country where you want to buy property.
3. Investment funds in tax-neutral locations
An investment fund run by various individuals from different locations may need a tax-neutral location where they can combine capital from different sources.
4. Asset protection
Many people will set up an offshore company to protect their assets from creditors, plaintiffs, attorneys, family members, ex-spouses, etc.
5. Avoid capital gains tax
Every country is different and every country has different capital gains tax laws. This post is not to provide tax advice, but it would appear that some countries allow structures by which you can avoid capital gains tax through indirect transfers of assets.
6. Lower tax rates
I cannot agree with the argument that seeking a lower tax rate is wrong. I'm all for lower tax rates, not just because they benefit me but because I understand that there's a reason why other countries offer lower tax rates.
This article was created by CG Bank S.A. It is a 100% offshore bank incorporated under the laws of the Autonomous Island of Moheli, within the Union of Comoros (no CRS offshore bank account). CG Bank S.A. is a white-listed, non-CRS, offshore bank.
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