Offshore companies, what are they good for? (Part I.)

Companies registered in the most significant offshore centres of the world are given a unique opportunity for global expansion under favourable circumstances. However, administrational and legal measures in a number of countries hinder such an expansion of economic role players.

International commerce
Companies registered in the offshore centres are often leveraged in international commerce based on the above idea. Significant amounts of tax can be saved and the administrative burdens of the enterprise can be decreased if such an on-location company gets included in the deals of international commerce.

International financial investment
International offshore centres ensure the expansion of the investments and economic opportunities of private individuals and enterprises by offering a number of favourable investment conditions. The utilization of offshore companies registered via our assistance brings significant advantages to owned investment portfolios. These portfolios may consist of shares, bonds, cash and different types of investments. Higher yields can be calculated for investments of companies registered in locations with favourable taxation rules, since there are no further charges on such incomes.

Holding services
It is typical in international commerce that investors use holding companies to manage their investments and to decrease risks. Several countries offer a favourable internal legal environment to facilitate the operation of holding companies. In order to find the most suitable advantages for a holding location to meet our client’s requirements, the location must also have favourable international treaties in place as well as favourable domestic legal regulations, with special regards to treaties to avoid double taxation. Our prepared colleagues can provide assistance to establish a holding structure which best suits clients’ customized needs and the selected locations of investment. A professionally planned holding structure provides the following advantages to our clients in addition to the discrete management of personal details of owners:
– permanent keeping of the tax for the entire profit of the activity at a low level;
– decreased or complete elimination of withholding tax if possible;
– effective management of ownership rights and the company group.
Additionally, investment locations which are less trusted by foreign investors can be made more attractive if they are owned by a company registered in an internationally acknowledged holding location and foreign investors receive acquire shares in the holding company.

Expert advisory, counselling and other services
In businesses requiring high levels of professional knowledge and skills, it is quite typical for highly qualified professionals not to offer their personal services in the employment of a company, but as freelancing consultants, experts or planners for parallel projects for clients operating in different countries. This type of service provision is especially typical in IT; the fields of implementation or planning; in the film and entertainment industry; aviation, shipping and finance. Administration and tax burdens can be simplified significantly by a service company registered at the appropriate location, and the provision of services can become more competitive towards customers. Advantages:

– Personal liability is limited
– Simpler and cheaper administration
– More favourable marketing display options
– A more favourable taxation environment