7 Benefits of Going Offshore

1. Tax Reduction Possibilities

If you incorporate offshore, you find that there are many jurisdictions around the world that have much lower corporate tax rates affording you the possibilities of reducing your tax rate tremendously.

However, whether or not that is actually possible to get your effective tax rate to 0% will depend upon the regulations and laws in your own home country and whether or not they have CFC regulations that force you to declare foreign corporations.

2. Privacy

Offshore Companies give you a privacy that is no afforded in many domestic jurisdictions. This is because there are very strict laws that prevent public disclosure of client information.

To become completely anonymous , will largely depends on where you live and the passport that you carry; as you are still beholden to the country you were born in, unless you renounce your citizenship or move abroad.

3. Asset Protection

Protecting your assets in an offshore jurisdiction is possible due to the separation of powers that come when you are able to structure your company so that you remain removed from it. It makes it much harder for creditors or false legal claims to gain access to assets that are directly under the domain of a corporate entity.

Similarly, having a Trust that is owned by an LLC for instance, gives you a greater degree of security as well as the advantage of having a second set of corporate law to protect your interests. A Creditor looking to break into the Trust must try to navigate the legal system of a separate country, many of which, like Marshall Islands or Nevis has many obstacles to entry.

4. Diversification

International diversification is a must in this days world. Without diversifying you risk losing anything if one domino falls.

Having an offshore structure gives you an advantage of having access to investments that are not bound by rules and laws in your home country. This gives you possibilities of higher earnings, spreads your risk and gives you access to multiple currencies.

5. Minimal reporting and financial requirements

Most offshore jurisdictions have minimal reporting and financial requirements. This reduces the amount of paperwork, enhances your privacy and reduces corporate bureaucratic red tape. Countries like Nevis or Marshall Islands for instance have no reporting or auditing requirements which attracts many investors looking for confidentiality

6. Relaxed Corporate Legislation

Many offshore tax havens have much lower fees because they have much lower corporate regulations and oversight, allowing businesses to flourish without over burdening regulations.

With a liberal corporate environment, many businesses can conduct themselves in ways that are not possible in more traditional environments.

7. More International Opportunities

There are many more offshore investing options that are made available in countries that have less regulations. In places like the Cayman Islands, there is relaxed investment regulations attracting some of the biggest names in the offshore investing world. As a result some 75% of the worlds hedge funds and upwards of 1 trillion dollars are in the Cayman Islands.

While these are just 7 benefits. There are many more that can be found by going offshore.