The potential benefits of a properly structured offshore company are numerous. Some of the main offshore company benefits and potential advantages include the following:

  • Asset Protection
  • Privacy
  • Simplicity
  • Tax Optimization
  • Low Administration Costs
  • Low Capital Requirements
  • Flexibility

Asset Protection

Offshore companies are often ideal vehicles for holding global assets of all kinds due to strong laws in the jurisdiction of formation around protection of assets held by the company.

Privacy

Another of the main offshore company benefits lies in the fact that identities of the owners and sometimes even the directors are not a matter of public record. High Net Worth Individuals and their families are at increased risk of being targeted by financial enemies, scam artists and other criminals looking to inflict harm and can thus gain from the various offshore company benefits relating to enhanced privacy.

Simplicity

One often overlooked offshore company benefit is the relative simplicity of the setting up an offshore company and thereafter maintaining it. Offshore company formation in many jurisdictions is a quick and seamless process and Sterling aims to make this process as simple as possible. After incorporation an offshore company benefits from more flexible regulations in terms of accounting requirements, public filings and similar as well compared to "onshore" companies.

Tax Optimization

One of the main offshore company benefits is that they are generally "tax neutral" meaning they are often tax exempt in the country of incorporation or they pay a low or nil effective rate of taxation when used as a holding company receiving dividend income for instance. Properly structured and administered, this may result in a reduction, delay or even complete elimination of the tax burden on the company or it may just mean the avoidance of double taxation of the same income.

Low Administration Costs

Many company administrators in offshore jurisdictions specialise in providing company secretarial and administration services and due to economies of scale and automated systems are able to provide these services at a very reasonable fee. An experienced offshore company administrator like Sterling is able to provide a range of services including a virtual office, accounting, professional directors, secretarial services and more at a fraction of the cost of setting up a separate office and hiring parties to fulfill these roles separately. This allows the client to focus more time on the core revenue generating activities associated with the company.

Low Capital Requirements

Offshore companies typically provide flexibility in terms of the structuring of the capital of the company. This often includes no minimum paid up capital or very low minimum paid up capital requirements.

Flexibility

Company laws designed to maximize offshore company benefits provide for flexibility in terms of the structure of the company and its capital, meeting locations, requirements to hold annual meetings, number and location of directors and shareholders and much more.

Contact us today to set up an offshore company!