Owning an offshore company is a powerful and efficient tool to take your brand abroad. This article presents five advantages resulting from this type of incorporation that attracts countless successful entrepreneurs and investors around the world.
Offshore companies are growing and becoming increasingly popular with brands that do business online. Many services need licenses or permits to run, and this process can come with economic and tax advantages offered by some jurisdictions. Therefore, it is essential that any operator that wants to consolidate itself by minimizing costs and maximizing profits in its online market, acquires the services of offshore companies.
What is an offshore company?
An offshore company is a company legally registered in a country or territory other than the official residence of the operator or operating entity of the company, or of which the operator does not have a valid passport.
An online bookmaker that operates in Brazil and India and is licensed in Curaçao, for example, is characterized as an offshore company, as it is an international company that does business in other territories.
It is important to note that offshore companies are legal institutions that are used for legitimate activities. The registration of an offshore company, as well as bank accounts and other incorporations, is 100% legal.
The offshore world is not illegal or incredibly complex as the media has made it out to be. Honest and law-abiding entrepreneurs want to go where they are treated best – as you should. And this is more than possible with an offshore company.Nomad Capitalist article: “Start an Offshore Company”
Why can it be more advantageous to create an offshore company?
Most entrepreneurs choose to open offshore companies in foreign territories mainly because of the tax advantages, which are low or non-existent for non-resident brands. At the same time, operators are also looking for a better commercial location for their business, as often their country of residence does not have specific jurisdictions for their area of operation.
For this reason, countries with offshore jurisdictions act efficiently by attracting this foreign capital, offering better conditions regarding taxes for non-resident companies, thus reaching specific markets.
What are the main benefits that an offshore company brings to your business?
Each country or territory has its own offshore jurisdiction, which offers different advantages for different businesses. However, these regulations have a certain pattern in the availability of their benefits. Therefore, five of them are highlighted below so that you can visualize the impacts that this movement can bring to your business if you are ready to move them abroad.
1. Low taxes
Reducing your company’s tax burden is one of the keys to exponential growth in your business. This is the main reason why entrepreneurs choose offshore jurisdictions.
Most countries that act as offshore centers offer tax exemptions or apply only a very low rate of charges to non-resident companies. This is due to the extremely favorable tax laws of such territories.
A great example is Curaçao, where companies whose revenues are generated exclusively outside and that meet the requirements of permanent establishment benefit from tax exemption.
2. High confidentiality
Secrecy is fundamental for any private company. Knowing that your company’s information – such as the names of beneficiary owners, directors, shareholders and accounts – will not be made publicly available provides security for operations.
Most offshore territories promote confidentiality policies for non-resident brands, so your company’s data may remain anonymous.
In addition, there are some jurisdictions where not even the local government has access to proprietary data of registered companies. Personal information can be known only within the company itself. This level of privacy is guaranteed by local laws.
3. Asset protection
Another important factor in offshore jurisdictions is the protection of registered companies’ assets. It is essential to use these regulations for this purpose because they have political and economic stability, preventing governments or even individuals from pursuing your company’s assets.
With assets registered with an offshore company, your company is safe from political volatility, inflation, hyperinflation and other types of turbulence that can happen in your country of residence or even in your company’s operating territory.
By taking your business to an offshore center, your company will be protected by the sound laws of a nation.
4. Financial security
Doing business with offshore companies also requires establishing a secure financial structure, and that goes through offshore bank accounts.
Many offshore financial centers have solid, stable and functional banking environments so that your company can conduct transactions in the simplest and most secure way possible. Banks in such places have this differential because they are registered in countries with a better economic outlook, in contrast to banking systems heavily controlled by governments and with high debts.
5. Greater protection against lawsuits
Companies registered in offshore centers, in most cases, also have improved legal protection. This is essential, because the more your company grows, the greater the need for protection against eventual lawsuits.
The legal system in force in your country of origin is not always the most friendly to your business, either because it has complex and bureaucratic legislation or because it simply has a contentious culture. An offshore company may be linked to a foreign jurisdiction with a set of laws that have incentives to support its registered firms more efficiently against arbitrary processes.
Should I invest in an offshore company?
When investing in an offshore company, your business will be effectively internationalized and your company will grow rapidly in the market, as your business will be being done in jurisdictions that have incentives to do so. So the answer is: Yes!
Offshore incorporations are becoming increasingly profitable and a large part of entrepreneurs and investors are migrating their companies to more free and prosperous countries. Removing your company’s registration from a place with high taxes and great government control can be the first step in boosting your company.
If you are ready to migrate your company’s registration to offshore jurisdiction, Egaming Curaçao can help you. Click here and contact us.