Structuring of international business
In the simplest term, an offshore company is essentially the same as any other company. An offshore company is a company incorporated outside the jurisdiction of its primary operations (such as the Jebel Ali Offshore, RAK Offshore, BVI, the Cayman Islands, Samoa, Seychelles, and so on). An offshore company usually has a low- or zero-tax rate and is specifically used for international, cross-border purposes and is not permitted to engage in business within the jurisdiction that it is incorporated in. Offshore companies are being used for a diverse range of activities such as trading, investment, property & asset holding, estate & succession planning, financing, and listing on international stock exchanges and acquisition transactions.
We use the words offshore business & offshore company as terms of definition in connection with matters such as the structuring of international business & family wealth management or tax planning.
Incorporation of an offshore company (or non-resident company) can be used for various purposes. One of the most common is the use of an offshore company as a holding company to hold interests in other companies in various jurisdictions, to hold trademarks, copyrights and other intellectual property rights, as well as to serve as the holding company for licensing of franchises. The income from taxable jurisdiction flowing to the offshore company (holding company) is not taxable.
- Faster & easier to establish
- Simplified accounting and audit requirements
- Low or zero tax environment
- Access to capital
- Stronger legal system
- No residency visa required to set up the bank account