Choosing an offshore jurisdiction is an important exercise. Apart from establishing the fact that it is a tax-friendly jurisdiction, one should also consider the offshore domicile’s reputation, the political risk, the quality of the legal system and governmental legislation, the communications network and the trust administration structure that is in place.

Most offshore jurisdictions are free from foreign exchange controls and your international income is not subjected to local government taxes. Offshore companies may be used for various purposes, such as for international trade or as an investment holding vehicle for asset protection reasons. For high net worth individuals with properties or other assets in a number of countries, holding these assets through an offshore company may save legal fees and avoid publicity. Utilizing offshore companies for estate planning may be more cost efficient and effective and circumvent the traditional onshore probate procedures.

One of the main advantages of forming a company in an offshore jurisdiction is flexibility and limited regulatory regimes. As a result, transactions that require regulatory approvals onshore may be achieved relatively easily offshore.