Offshore Company Registration involves an offshore company which is a legal entity created outside of a person’s home or resident country. The majority of offshore company registrations occur in what are known as “tax haven” countries which do not levy any taxes on the offshore company. A good example is Panama which only levies income taxes on profits earned inside the country. All income generated outside of Panama is totally income tax free.
The costs of offshore company registration are minimal. Most tax haven countries charge nominal offshore companies registration fees and their law firms charge a few thousand U.S. dollars for creating an offshore corporation or other legal entity. POLS charges $1,000 USD to create an offshore corporation while the government charges an annual $300 registration fee.
The advantages of offshore company registration includes minimizing income taxes, obtaining freedom through privacy and confidentiality while conducting financial affairs, and creating a global presence. Many tax haven countries have laws enabling anonymously owned legal entities along with bank account secrecy laws assuring complete privacy. Some people create offshore companies with bank accounts in more than one tax haven country.
Offshore companies also provide diversity and offshore asset protection outside of the home or resident country. This has the advantage when one’s country suffers from an economic downturn like the global one in 2008 in which many countries still haven’t recovered from. Also, in cases of civil unrest or political instability it is better to have funds and other assets safely held in another country. Many countries are attempting to recover from the current worldwide economic crisis by raising taxes which is hurting the middle and upper middle classes the most. A nest egg outside of the country which is earning tax free income is ideal in times of rising taxes.
Many people are looking to escape the problems their countries are going through and are feeling squeezed by rising taxes, government fees, and basic needs prices. Registering an offshore company in a tax haven country provides an escape route to a cheaper way of life as many tax haven countries are tropical, with warmer environments and lower costs of living. Everything from buying real property, renting an apartment, buying food, using taxis, school tuitions, hospital and medical care, and other basic needs can be much cheaper than the country you are living in.
Government intrusion in one’s privacy is a growing problem with many countries attempting to recover from the global economic downturn. The “Big Brother” syndrome is becoming more of a startling reality when news stories are constantly uncovering government wiretaps, surveillance, reading emails, listening to phone calls, intercepting text messages, and monitoring social networks of their citizens. Registering offshore companies to protect one’s privacy is beginning to become a solution to government intrusions.
Whether you are considering relocating to another country, looking for ways to minimize taxes, wanting to diversify your assets in other jurisdictions, or seeking total privacy when conducting your financial affairs; offshore company registration in a tax haven country may be the answer to your desires. Contact Us for all of your offshore company registration needs.