Offshore company incorporation
Healy Consultants Group PLC
22 May, 2014
An offshore company is utilized to legally minimize domestic and international tax. For instance, a properly structured non-resident Irish offshore company is legally tax exempt on global income. Therefore, entrepreneurs interested in incorporating offshore companies prefer to conduct EU business through this entity. While the requirements for an offshore business setup can vary between jurisdictions, the procedures to set up such a company follow typical steps as follow.
First, the initial planning stages for setting up the company involve matching the advantages of jurisdictions to the desired objectives for the business in order to choose the most appropriate jurisdiction for the company. There are different reasons for choosing the location for an offshore business. However, the top five global jurisdictions include Singapore, Hong Kong, Dubai, Ireland, and New Zealand.
Other planning considerations while setting up an offshore firm include: i) are there any specific business licenses required ii) does the chosen jurisdiction require a local sponsor iii) banking and cash flow analysis and iv) employment visa strategies.
To support an offshore business, investors may consider to i) open an account to access offshore banking solutions ii) obtain trade and corporate finance iii) register a business address for invoicing purposes iv) locate business premises and v) help with developing a corporate website.
An offshore company can be used to legitimately minimize capital gains and inheritance tax when international assets are owned by an offshore LLC. For example, a Luxembourg SPF company can own international securities, real estate, and private equity. The shareholding for these firms can be transferred or sold to third parties without triggering local tax liabilities.
Last but not least, international entrepreneurs can hire global employees or consultants through an offshore company. Moreover, offshore business incorporation can be strategy used by individuals who live in politically unstable countries to hold family wealth to avoid expropriation or exchange control restrictions in the country in which they live.
« Go Back to Blogs