{"id":27310,"date":"2019-09-15T11:28:04","date_gmt":"2019-09-15T15:28:04","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=27310"},"modified":"2021-02-06T10:47:45","modified_gmt":"2021-02-06T15:47:45","slug":"what-you-need-to-know-about-the-setup-and-use-of-an-offshore-corporation","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/what-you-need-to-know-about-the-setup-and-use-of-an-offshore-corporation\/","title":{"rendered":"What You Need To Know About The Setup And Use Of An Offshore Corporation"},"content":{"rendered":"

What You Need To Know About The Setup And Use Of An Offshore Corporation<\/strong><\/h2>\n

Establishing an offshore corporation<\/a> is not as difficult as many people think. It\u2019s also a practical move that can provide benefits in a number of situations.\u00a0<\/span><\/p>\n

Before taking this step, it pays to learn more about what an offshore corporation happens to be, how it can be structured to provide the widest range of benefits, and why it pays to remain up to date on current domestic tax laws and how they relate to your corporation.\u00a0<\/span><\/p>\n

Here\u2019s some basic information that will help you get started.<\/span><\/p>\n

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What Constitutes An Offshore Corporation? <\/strong><\/h2>\n

The basic definition of an offshore corporation is an entity that\u2019s established in a country other than the one where the owner resides and is a citizen. In a broader sense, it\u2019s a corporation that\u2019s set up and operates in some way within a nation that offers a more favourable tax environment.\u00a0<\/span><\/p>\n

In some cases, you can set up the corporation in what\u2019s considered a zero-tax country. That doesn\u2019t mean you won\u2019t pay local taxes, although that\u2019s possible in some nations. What it does mean is that how your tax liability in your home country is determined may not involve any of the assets held by the offshore corporation. <\/span><\/p>\n


\n<\/span>What\u2019s The Process For Establishing An Offshore Corporation?<\/strong><\/h2>\n

In some ways establishing an offshore corporation is much like setting up a domestic one. You do need to settle on a name for the entity and there is the need to register it with the proper authority. Doing so involves preparing and submitting the documentation required by that registering agency. At the time your corporation is granted legal status in the country chosen, it\u2019s also necessary to render any applicable fees and charges. <\/span>
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\n<\/span>One aspect that\u2019s a little different is determining which offshore location<\/a> would work best for your new corporation. This requires looking closely at the incentives offered by different countries as well as the tax requirements involved. It helps to understand what information, if any, that country reports back to domestic tax agencies. You also want to know what sort of local taxes you may need to pay, as well as how much in annual fees you must pay in order to maintain the corporation. <\/span>
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\n<\/span>After deciding which country is the right one for you, <\/span>check with the banking authorities<\/span><\/a> there to identify the specific process for setting up your corporation. In some nations, those same authorities can handle the details on your behalf.\u00a0<\/span><\/p>\n

Remember that your offshore corporation may be part of a broader plan to protect assets that you place in different types of offshore banking and investing accounts. By holding them through the corporation, they become less subject to the same laws that apply in a domestic setting. <\/span><\/p>\n

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How Would I Benefit From Setting Up An Offshore Corporation? <\/strong><\/h2>\n


\n<\/span>There are several possible ways that you could benefit from establishing an offshore corporation as part of your plan for savings, retirement funds, and investments. Here are some examples to keep in mind:<\/span><\/p>\n