41. Q: Why should I turn to a professional service provider in the formation of an offshore company, when all the information is available over the internet?
A: While this is definitely true, loads of time can be wasted searching for the information. Using the services of a professional is justified because the knowledge which we have acquired over the years can save you a significant amount of time and money. In addition, every single offshore jurisdiction has its own specifics related to its legislation and corporate regulations, which can be very confusing for a person who has no experience with this matters.
42. Q: Are offshore companies really tax efficient?
A: If an “onshore” company subject to high rates of tax comes up against an offshore company, then the advantageous tax regime undoubtedly provides benefits which will mean greater profits for the company, which can either be used for dividend payments or for further development. During a recession, an enterprise with greater liquid assets, either from its own sources or from bank loans, will certainly be more efficient and successful. If, therefore, as a result of favorable tax conditions, a company has been able for years or even decades to re-invest more in production or development, then it can enjoy significant advantages over competitors who may not have been employing efficient tax solutions.
43. Q: What is a tax haven?
A: A “tax haven” (or “tax shelter”) is neither a legal, nor a political, official or scientific term. In the traditional sense, a tax paradise is a country where one can register a business which will remain completely tax-free in that country (except for certain government fees), as long as it does not operate inside its own country. Some tax haven jurisdictions have gone even further, by abolishing business and income taxation for all businesses, both domestic and offshore.
A proper tax haven jurisdiction would normally have a whole complete network of regulations, laws and precedents aimed at the attraction of international business to register there. Such attractions may not only include zero taxation on business, but may also feature extremely fast and efficient business incorporation procedures, minimum mandatory reporting, strict secrecy provisions in the financial and corporate sector, a developed financial system and no information-sharing agreements with foreign governments.
44. Q: Which is the best country for offshore company registration?
A:There is no definite answer to this question. A varying range of fiscal and financial benefits to international business are offered by tens of jurisdictions around the world. The actual choice may depend on such variables as the geographical location of the client, the type of business for which the offshore company is intended, price of incorporation and management, speed of service, language and, of course, the range of services offered.
45. Q: Is it actually legal to own an offshore company?
A: Yes. Owning shares in an offshore corporation, either directly or indirectly, is no different to owning a domestic business. Certainly, an offshore ownership should be considered along with some proper advice. A competent accounting company like ours should be able to clarify all the advantages and disadvantages of a certain offshore jurisdiction. All-in-all, offshore company is just the same as Your domestic firm, only the offshore corporation is not burdened by excessive tax, is faster to incorporate and easier to manage. As such an offshore company is completely legal to own and to use.