Many corporations are increasing going internationalization. Corporate structuring and planning have achieved higher levels of complexity than ever before while the need for anonymity remains strong. Offshore Companies are set up for tax minimization reasons. A more correct term to use would be tax mitigation or planning, because there are ways of mitigating taxes without breaking the law, whereas tax avoidance is generally classified as a crime. Asset Protection - To avoid high levels of income, capital and death taxes that would otherwise be payable if the assets were held directly. It can also protect assets from competitors and other parties. Confidentiality - Offshore Companies offer certain level of privacy especially if nominees are used. Estate Planning - In the form of Family and Protective Trusts (possibly as an alternative to a Will) for accumulation of investment income and long-term benefits for beneficiaries. International Tax Planning - You get to save money not only from the absence of corporate taxes but also reduced compliance and other regulatory cost. Contact Business as an International Entity - Maximize profits from intellectual property rights, franchising and licensing. Protect Investments in other Foreign Countries - International Companies can loan funds to corporations in other countries. Indirectly, investors may setup an offshore company that loans funds to a development company in another country. |
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