Popular Offshore Investing
Offshore investing has become very popular rover the last couple decades with not just the extremely wealthy persons investing offshore but persons who are keen on tax planning and protecting whatever assets they may have. Offshore investing is a number of business strategies which investors can use offshore. Offshore investing can be made in the following forms; offshore company incorporation, offshore bank accounts, offshore trusts, offshore foundations and other offshore entities (partnerships LLCs etc).
Offshore investing is done in countries or territories which are called tax havens for the simple reason that they provide corporations and individual with legal means of reducing taxes. There are two types of tax havens for offshore investing pure or zero tax havens and the low tax havens. The low tax havens are the countries which impose taxes in the profits of offshore entities. The taxes which are levied are very low compared to the taxes in regular or onshore jurisdictions. The zero tax havens have no taxes imposed on the profits of offshore entities.
It is important to carefully choose an offshore jurisdiction for making offshore investments. There are many jurisdictions available for offshore investing around the world. Some of the more popular and progressive offshore tax havens include Dominica, Barbados, Seychelles, Isle of Man, Dubai, St Kitts , Nevis, British Virgin Islands, Belize, Anguilla, Singapore, Hong Kong, Cayman Islands and many others. These countries have the proper legislation in place to offshore investment opportunities.
The most popular offshore investment available is the offshore company or international business company. The incorporation of an offshore company in the right tax haven is the most effective means of ensuring that assets are secure and that tax liability is reduced greatly. A person wishing to invest offshore must choose a low tax haven or a zero tax haven for offshore company formation. The process for offshore company formation is done rather efficiently with offshore agents preparing documents on behalf of the company shareholders and dealing with the Registrar office in the offshore tax haven.
As far as offshore investing goes an offshore company can be considered the best. Offshore companies can do business in all countries around the world and these companies are very versatile. The offshore company has a simple structure, is east to incorporate but as a company has many uses. Offshore companies can be used for international trade between different countries offering different products. An offshore company can be incorporate simply for keeping assets and offshore companies can be used as investment companies, offer marketing services and as holding companies.
An offshore company helps to reduce tax liability significantly, where regular or onshore companies pay exorbitant taxes on profits the offshore companies pay zero or very low taxes. Tax exemptions are guaranteed by offshore legislation in the tax havens and exemptions are given on the following taxes; capital gains tax, income tax, corporate tax, withholding tax and inheritance tax as well as stamp duty.
Offshore banking is another form of offshore investing which is requested in the offshore jurisdictions. Offshore banking is secure banking where very stable banking institutions provide high quality offshore banking services to individuals and corporations. Investments in offshore banks can be made in the form of accounts and many offshore banks also provide services of investment fund management and offshore brokerage accounts helping clients to efficiently manage offshore investments. Other services which offshore banks offer to offshore investors are credit and debit card, internet or online banking, wire transfers and others.
Offshore bank accounts for making an offshore investment can be set up with the help of an offshore agent who will help the client choose an appropriate bank and offshore jurisdiction. Offshore bank accounts benefit from tax exemptions in the offshore tax havens and are protected by privacy laws which maintain private any information in an offshore bank account.
When it comes to asset protection and offshore investing the favored investment vehicles are offshore trusts and offshore foundations. Charitable and non charitable offshore foundations can be established in the offshore tax haven. Any asset placed in an offshore trust or foundation becomes the property of that entity which is protected by asset protection laws in the offshore tax havens. Offshore trusts and foundation benefit from privacy laws and like other offshore entities are exempted from local forms of taxation.
The registration of offshore trusts and foundation as offshore investments is done by professionals in the tax havens. All information in offshore trust and foundation remains private. When making this type of offshore investing any type of asset can be used; real estate property, shares, vehicles, art, capital and any other tangible or intangible assets.
Offshore investing was once regarded as some sought of illegal business and was highly scrutinized and was once linked to criminal activities but offshore tax havens are keen on protecting their status as offshore jurisdictions and have implemented laws and regulations which will keep criminals at bay. The countries where offshore investing can be made are countries which have stable economies and are also politically stable. In the offshore tax havens the government and authorities in charge of offshore sectors working closely with all the players in the sector to ensure that the best services are provided and excellent investment opportunities are available.
Offshore investing is completely legal and provides the privacy that many investors and corporations crave. Investments offshore will guarantee that assets will be available for future use.