The words “offshore business” and “offshore company” have no precise legal, tax or general business meaning. The word “offshore” often means nothing more than anywhere other than the place of physical location of the person using the word (i.e. overseas). We use the words “offshore business” and “offshore company” as terms of definition in connection with matters such as the structuring of international business and family wealth management or tax planning.

There may be substantial benefits obtained through moving your business and assets into an offshore entity. Perhaps you're worried about your future, about the potential of a crippling liability action, perhaps you're trading internationally and have income arising in different parts of the world, or perhaps you are concerned about inheritance taxes on your death.

An offshore company is a very flexible corporate entity commonly used in international tax planning, and can be integrated into a wide variety of business arrangements. Tax minimization, asset protection and confidentially are just a few benefits which can be achieved by a proper application of an offshore company. A clever use of an offshore company can reduce, defer or eliminate some tax that would be otherwise payable in a high-tax jurisdiction, but does not relieve its beneficial owner from all personal tax liabilities in his home country.

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.

Interest in establishment of offshore companies has been popularized by the ability of the offshore corporate entity to mitigate taxes to its beneficiaries. Residents of countries with high tax rates may be able to reduce the tax they pay by arranging for profits to be attributed to a company incorporated in a territory, which does not tax the income earned outside of the territory.

Going offshore: Reasons and Benefits  

Reasons and benefits for individuals and corporations to utilize offshore companies include:

Maintain financial privacy

Reduce tax

Manage risk

Avoid costly bureaucracy

Reduce costs

Enhance assets

Free remittance of profits and capital

Access to tax treaties

Security of property rights

Banking privacy

Availability of offshore experts

Access to foreign insurance and reinsurance

Enhanced privacy

Territorial taxation on foreign income

Fewer restrictions

Sanctity of contracts

Foreign investment inducements

Higher yields and returns

The search for political stability

No inheritance, succession or gift taxes

Protection from inflation

Reduce legal liabilities

Reduce operating expenses

Freedom from currency exchange control

No international trade tariffs

No annual tax return requirements

Data on owners and directors not publicly available and remain confidential

World class banking and investment management services available

Offshore Companies Applications The principal uses of offshore companies are:

Trading

Investment

Holding

Financing

Patent, royalty and copyright holding

Real property ownership

Ship management and yacht owning

Personal and corporate tax planning  

Flying Colour have over 8 years experience in offshore company formation and management. We have a specialist team dedicated to set up offshore companies and trusts in local and international offshore jurisdictions.  Our comprehensive range of offshore services provides solutions to clients looking to minimize taxes, protect assets and limit liabilities.