Offshore Company Uses
An offshore company is an effective tool for strategic asset management. Below are practical uses for an offshore corporation: |
|
| Professional Services | Overseas Property |
| Inheritance Planning | Employment Companies |
| Asset Protection | IPO and Capital Raising |
| Investment Companies | Licensing Company |
| Shipping Companies | Captive Insurance Company |
| Transfer Pricing | Single Purpose Trustee |
Transfer pricing, also known as profit up-streaming, is the
strategy of moving profits from a high tax jurisdiction to a low or zero tax
offshore jurisdiction. What is required to achieve substantial tax saving is
to interpose a low or zero tax offshore jurisdiction company in between a transaction
that would otherwise take place directly between two high tax jurisdictions.
Transfer pricing is not illegal if correctly structured and implemented. For example, an offshore corporation may act as a distributor
or sales company accepting orders directly from the customer and arranging
delivery of the goods direct to the customer from the manufacturer or place
of purchase. The surplus arising on the difference between purchase and sales
price may be accumulated free of tax. This can be of particular interest where
goods are purchased in one country and sold in another, yet the businessman
is located in a third country. Goods may be shipped directly from the supplier
to the purchaser with the supplier invoicing the offshore company, which then
invoices the purchaser at a higher price, retaining the profit offshore. |
|
Using a coherent offshore tax planning strategy, a person working overseas is able to limit his tax burden
by receiving, into the country in which he is working, a fixed level of remuneration
and accumulate the balance in an offshore company. Similarly, designers, authors,
consultants and entertainers may assign or contract with an offshore corporation the right to receive fees due under a contract for services. |
|
People who travel the world and expatriates often find that
their connections with foreign countries create uncertainties and undesirable
consequences for their wealth on their death. The transfer of wealth to an
offshore trust can avoid these difficulties, the wealth is protected in a stable
environment well away from the unwanted attentions of the tax and inheritance
laws of foreign jurisdictions. Where a person is domiciled outside a territory and owns assets
located in that territory (e.g. property), then such assets may be protected
against inheritance tax and higher rates of taxation by holding the assets
through an offshore company. |
|
High net worth individuals gain privacy and save on professional
fees by using an offshore corporation as a personal holding company. These entities
may be suitable for inheritance planning and reducing the costs and time delays
in probate. |
|
The offshore company is investing in property, stocks and
shares, commodities and other assets, while providing anonymity and tax savings.
Funds accumulated can be invested or deposited throughout the world, although
the funds may be subject to the tax regimes of the countries in which the investments
are located. There are countries with tax-exempt bonds or bank deposits where
interest is paid gross. Healy Consultants can advise of the most efficient solution to meet your offshore tax planning requirements. |
|
Ships or yachts may be owned by an offshore company and registered
in an offshore jurisdiction which can prove a cheaper and more tax-efficient
method of ownership. For more information, visit our Ship Registration in Singapore page. |
|
Many of the difficulties and expenses associated with investment
in overseas property, such as holiday villas, may be avoided through the use
of an offshore company to hold the title of the property. Sales of the property
at a future date can be dealt with quickly and easily by the sale of the company
shares to the purchaser. This also saves legal fees and overseas transfer and
value added taxes levied by certain foreign countries. It can also be used
to successfully avoid capital gains and inheritance taxes. For more information, visit our Asia Property page. |
|
Payroll costs and travel expenses may be reduced by paying
employees working overseas from an offshore corporation. This may also provide tax
relief and social security saving benefits for the employees. |
|
Many large corporations in economically and politically uncertain
countries often diminish the perception of risk by moving ownership of assets
and the base of their operations to an offshore company. For more information, visit our Stock Exchange Listing page. |
|
To own trade licenses and royalty rights for which the IBC
pays no tax itself on royalty receipts in the offshore jurisdiction. We frequently
advise companies on the sale of patents, technical know-how, and license and
franchise agreements to an offshore company, which is then owned by an offshore
trust. Upon acquisition of the rights, the offshore company enters into agreements
with licensees wishing to utilize the patents, technical know-how, licenses
or franchises around the world. The income, subject to applicable withholding
tax, is accumulated tax -free in the offshore company. By careful selection
of the jurisdiction, withholding taxes can be substantially reduced by the
commercial application of double taxation treaties. |
|
For certain types of cover such as product warranty. The creation
of the captive can generate tax deductible premium and tax savings through
the offshore insurance company. |
|
Where the client creates own corporate trustee for family
trust, thereby ensuring more effective control during a client's lifetime and
saving on third party trustee fees. |
|
Contact Us |
|
For more information onon the benefits of an offshore company or offshore tax planning, email email@healyconsultants.com or telephone (+65) 6735 0120.
|
|
Back To Offshore Company Formation page. |
|
Buy Healy Consultants' Asia Business Set Up book for US$1000, to order call +65 6735 0120 or contact email@healyconsultants.com
OFFSHORE COMPANY FORMATION SERVICES