Every entrepreneur wants to optimize his income and his general organization. This is the reason of offshore company choice. Here is all you need to know about this structure which is particularly relevant despite its bad reputation.
Optimization of fees and taxes
In the first place, it should be emphasized that the main interest in creating an offshore company is relative to paying less taxes. This form of tax optimization is completely legal, as long as the manager warns the tax authorities of his country of residence. Of course, experts in tax optimization know how to use the laws to reduce the amount of taxes owed by their customers (legally so).
Thanks to an offshore structure, the entity has the choice to declare its taxes where the tax rate is low. In this sense, entrepreneurs may not even pay income tax.
In any case, faced with a tax pressure ever more voracious, entrepreneurs are more likely to domiciliate their business outside their country of residence (even change of tax residence). When we know that setting up an offshore entity costs less than 2 000 euros…
Anonymity and banking secrecy
In addition to purely tax interests, World-Offshore specifies that the creation of an offshore company also has a major advantage: bank secrecy and total anonymity. Except in specific jurisdictions, each transaction must be traceable from its origin to its point of destination.
In a context of globalization and in the face of the implementation of the CRS (Common Reporting Standard), banking secrecy allows to be protected since its bank isn’t obliged to provide the information of its customers (Switzerland, Hong – Kong). Anonymity is also quite possible thanks to a mechanics of nominee, also called Nominee.
In short, the opportunities and benefits of the offshore world are real. It’s strongly recommended to call on a specialist to choose the best version for your offshore destination (depending on your country of residence, your activity, your turnover etc.).