Top Reasons to Use an Offshore Company for Business
Countries around the world have made entire industries out of providing exceptional financial services. These services range from tax protection, financial security and management, as well as privacy protection. Setting up company headquarters in such a country provides business owners with a novel opportunity to enjoy major financial advantages.
Places like Belize, Switzerland, and the Cayman Islands have developed quite the reputation for these reasons. Their entire economies are based on the extensive financial services the bank systems can offer. When looking to set up your company headquarters, some factors you ought to consider are:
1. Lower Tax Burdens and High-Interest Rates
To create these incredibly business-friendly environments, these countries have reduced their tax rates to a bare minimum. The Cayman Islands, in particular, have a minimal tax rate which eliminates much of your tax burdens, leaving more profits behind for you to reinvest into your organization.
One major advantage that these offshore companies present is access to financial systems that have very high-interest rates. Funneling your money into banks offshore, under your company’s name, can help you make immense amounts of money with just the returns on interest.
2. Business Opportunities
Since foreign countries offer very effective tax avoidance mechanisms, these are also places where major organizations set up their headquarters. This creates a concentration of corporations which makes these countries centers of financial activity. This creates investment opportunities and platforms for you to collaborate with these corporations for mutual benefit.
3. Access to Financial Expertise
Since financial services form a major commodity that these companies produce, they have an entire labour force that specializes in financial services as well. Singapore, in particular, is well renowned for its investment management services.
Having a majority of your company’s assets in such a country can help you generate multiple income streams that can be used to supplement your financial base.
4. Secure Financial Sectors
The financial sector in Switzerland makes a contribution of 80.3% to the entire economy. It is a fundamental driver of economic growth in the country. For this reason, countries like Switzerland take a special interest in their financial sectors. With your companies set up in a place like Switzerland, you can rest assured that you will not have to face any backlash from the financial conditions of your own country.
Combine these with low tax payments, high-interest rates, and a plethora of business opportunities; you shield yourself from any financial/economic fluctuations that might adversely affect your company even if your own profits aren’t as high because of financial instability in your own country.
5. Protection from Litigation
Many times, business owners face legal action that spills over onto their companies. Registering your companies in an offshore location reduces the risk of your company’s assets coming under inspection since they lie outside of your home country’s jurisdiction.
You manage to create a distinction between your personal financial status and the companies. With the protection of the offshore country’s laws behind you, you don’t have to be concerned about any personal litigation affecting the performance of your business.
Mikkel Thorup, host of The Expat Money Show offers advice to clients looking to form offshore financial entities. He helps clients open offshore bank accounts, offshore companies, and silver/gold vaults to protect their financial interests. Get in touch with him today for more information on the full extent of our services or for assistance in completing any offshore financial plans you might have.
I hope you got great value from reading Top Reasons to Use an Offshore Company for Business.
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About The Author
Mikkel Thorup is the Director at EscapeArtist.com the oldest and largest offshore website in the world and hosts The Expat Money Show podcast. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. Mikkel has spent over 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just like you to generate additional streams of income, legally eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. Follow Mikkel Thorup on Twitter @ThorupMikkel
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