Offshore Investment - The Ideal Way for Saving Your Money
Offshore investment is generally thought to be a malicious trick used by nomadic billionaires to escape taxes and hiding assets from the government. This is certainly a false perception. There are a lot of misconceptions and myths about offshore investments because of the lack of knowledge and awareness. The truth is that offshore is a purely legal and a best way for saving money. In past couple of years companies like Google, Apple and a multitude of other companies have cut their taxes by billions in completely legitimate ways. You can use this too. Your Ajman Free Zone Business Setup can also get a number of advantages by using offshore investment methods.
To understand the benefits of offshore investment, you first need to realize what is an offshore and how it works.
What is an Offshore Company?
An offshore Company is a legitimate company which is incorporated for the purpose of operating a business outside the original country of its registration and/or the place of residence of its directors, shareholders and beneficial owners. This is pursued to realize various financial, legal or tax benefits.
An offshore company is entirely different from the companies that are engaged in offshoring their manufacturing or service functions.
How to set up an Offshore and how does it works
Offshore company formation is not a rocket science. You can find a lot of websites of agents that deal in incorporating offshore companies for their clients. Each claiming to be the best and most reliable. Setting up an offshore is a simple five step procedure:
- Choose your Jurisdiction (Wisely)
- Create an Identity (Secret)
- Open a bank account. Some offshore banks require you to be physically present; there are many offshore banks that allow you to open an account remotely.
- Move or Invest the money
- Spend the money
Running an offshore company is easier because of the less number of procedures and less paperwork is required. You can manage all business operations remotely and smoothly.
Benefits of an Offshore Company:
There are many advantages of offshore investment. However, I am listing down the most premier perks and privileges of having an offshore company.
Decreased Political Risks and Assets Protection:
Today, the biggest threat to any business or saving is not recession or market risk. It’s the rapid change in policies of your own government. When the governments are struggling with economy, they find your savings an easy target. According to Judge Andrew Napolitano:
“People who have more than $100,000 in the bank are targets for any government that’s looking for money to shore up its own inability to manage its finances”.
For all those with international business interests, offshore company is a valuable instrument for securing assets in the form of intellectual property or real estate investments.
One of the main benefits of an offshore setup is that the identities of owners and investors are strictly kept confidential and in some jurisdictions the directors are not a matter of public record. High net worth individuals and business celebrities are more vulnerable to get targeted by scams artist and competitors. Offshore company provides an enhanced confidentiality to such investors.
Easy To Make And Easy To Maintain:
The setting up procedure is pretty fast and simple. Minimum capital required varies upon the jurisdiction but generally a very low capital is required. Managing of your business operations and bank accounts is easy and be done remotely, via phone, fax and internet. There is absolutely no need of your actual presence in making transactions and in other financial matters. No office space is required and it is suitable for any kind of international business and trading.
Tax reduction is also a major benefit of an offshore company. These offshore localities are often called as the “Tax Havens”. As the name indicates, investors get a relief from many taxes. In some jurisdictions like Free Zone Company formation in UAE has absolutely no taxes to speak off. This is because the corporation does not engages in local operations so, a little or no tax is imposed on the off shore corporation.
An offshore company is free from conducting audits. No audits or other reports are to be submitted in authorities. Investors are free from all such burden of formalities.
There are a lot more advantages of offshore investment. I hope that this article has removed all the ambiguity regarding its legal status. So don’t worry at all and start thinking of it today.
(Photo credits: Pixabay)
Author Bio: Mona
I have been writing for websites, articles and blogs for five years now. I have had a fair share of writing on variety of niches but my main focus is business, sales, finance and tax. Currently, I am working with business consultants in Dubai (Riz & Mona) which offers company formation and business setup services across all states of United Arab Emirates. Our other services are products registration, visa processing, bank account opening, trade license, trade mark, local sponsors and many more.
Please note that the above article may contain affiliate links. The above article contain only the opinions of the author and do not represent the opinions of this site. The article contents should not be construed as investment advice.