text discard changes edit
Capsule Subtitle:
Don't display this capsule:
Background: Only available when aligned right.
6 reasons to go offshoreClick edit above to add content to this empty capsule.
Offshore companies are beneficial for many purposes including the following six reasons:
1. Consultancy, Professional Services, Agency
Professionals, consultants, artists and many self-employed individuals can gain substantial advantages by working as employees or as external consultants of offshore companies, of which they may be the sole shareholders and, if they want to, the sole directors.
2. Employment of Expatriate Staff
Expatriates working overseas can frequently benefit from being employed through an offshore employment/consultancy company. This can avoid tax being deducted at source. By not remitting the full salary it can minimise tax and avoid exchange control difficulties in the country of temporary residence. This arrangement will be particularly attractive to expatriates working in politically unstable countries.
3. Property Owning Companies
There are often significant advantages in using an offshore holding company for the purpose of holding property. The advantages of such an arrangement include the avoidance of inheritance tax, capital gains tax and the ease of sale which can be achieved by transferring the property owned by the company and reduction of property purchase costs to the onward purchasers.
4. Investment Companies
Funds accumulated through investment companies set up in offshore areas can be invested or deposited throughout the world and whilst generally returns or interest payable in respect of these funds will be subject to local taxation, there are a number of offshore areas in which funds may be placed as bank deposits where the interest and/or the capital gains are paid and kept gross. To invest in global securities including mutual funds not available to "local" citizens. Offshore jurisdictions are typically less invasive allowing for aggressive and unrestrained Free Enterprise.
5. Copyrights, Patents and Trademarks
Offshore companies can purchase or be assigned the right to use copyright, patent or trademark. Royalties can then be accumulated offshore although often royalties may suffer withholding taxes at source. An interposing holding company in some cases may allow a reduction in the rate of tax withheld at source.
6. Privacy
A high net-worth individual can save professional fees and unwanted publicity by owning property or other assets through an offshore company. CPS can provide a wide range of services in the field of privacy protection.
Always seek professional advice before going offshore, the team at Henderson Morgan look forward to working with you to secure the best options for your business advisor@henderson-morgan.com
