Benefits of Offshore Incorporation
Only a few years back before the advent of internet the business enterprises have not much idea about the Offshore Incorporation. But the internet has opened a new vista for the business enterprises to expand their facilities to offshore or foreign countries in a bid to avail lots of protection as well as legal umbrella. In addition to this the chief aim of the offshore companies is to exploit the chief labor force available in the foreign countries. This is the reason why many big corporations of America, Europe and even of Asian countries like Japan and India are trying Offshore Incorporation in the developed as well as developing countries. Many incorporations will be found in China where there is the availability of cheap labor along with relaxed labor laws which have been made possible by creating special economic zones which is a novel concept discovered by the Chinese rulers in order to provide an umbrella where there will be no labor laws. This concept is now copied by other developing nation such as India, Pakistan etc in a bid to attract investment.
Benefits of offshore companies
- By incorporating offshore companies it is possible for you to plan your tax burden thereby saving a lump sum amount.
- Avail the protection in case of any sort of personal problem or in case of the unfortunate occurrence of natural catastrophe. The case of Union Carbide of USA can be cited as a glaring example of avoiding compensation to the victims of the poisonous gas leakage catastrophe which happened in Bhopal, a capital city in India. Mr. Anderson the owner of Union Carbide could manage to avoid the punishment as well as payment of enormous compensation to the victims by taking advantage of the lax rules of India as well as the lackadaisical attitude of the authorities in India and also by paying underhand money to the ministers.
- It is possible to protect the personal and financial privacy
- All the asset protection as well as the banking strategies are absolutely legal and quite sensible from the business point of view.
- By Offshore Incorporation you can become judgment-proof as courts worldwide are not recognized entity in these offshore jurisdictions.
- Tax assessment is absent in offshore trusts which are also known as International Business Companies which are built in offshore locations.
- The jurisdictions of offshore companies do not tend to tax on the incomes which are earned outside the jurisdictions of the offshore companies.
It is but natural for the profit mongers to get attracted to the new concept. Not only the big corporate companies but also smaller entrepreneurs are also using this grand avenue of earning huge profit. By building a well structured offshore company it will be possible to use it as a vehicle for which will be tax-efficient as well as excellent for carrying out international business along with asset protection and anonymity. The Offshore Incorporation is exempted from disclosing the names of their directors, shareholders and beneficiaries.