Expert advice is crucial when seeking to set up a business offshore even thought the process may seem simple enough. South African entrepreneurs have compelling reasons to take their business offshore as the tax rates and often the labour rates are far lower. Reporting restrictions are also usually more flexible than the country in which the business owner resides.
Foreign governments allow offshore companies to be registered inside their borders because outside investment provides a substantial income for these countries. This capital investment creates significant inflow to their current economy. Off shore companies are predominantly set up for import-export companies, international trading companies, asset holding companies, to hold property investments or intellectual property.
What are the benefits of going offshore?
Structuring an offshore company correctly can be used to reduce taxation, especially if you do not derive a profit from the country in which the company is incorporated, with the possibility of paying no tax altogether, as long as the company does not do any business in the country in which it is located.
You can use an offshore company with an offshore trust to protect your assets while retaining control over the way your assets are managed, shielding your assets from any form of liability. By being actively involved in an offshore company you can manage the assets whilst remaining independent from it and ensure maximum asset protection.
Cost effective and simpler operations
If your business is not subject to international regulations there are certain jurisdictions that make it easy and attractive for all types of companies to operate charging low fees to incorporate and even lower maintenance fees. Burdens like accounting and record keeping are reduced; in turn reducing overheads.
Confidentiality and anonymity
Nominee directors are used to carry out all transactions in the name of the private company and keep the names and details of the underlying principal of the company out of public documentation.
When setting up a business offshore one needs to take a variety of tax and exchange rules into account. This can become very complex as you need to take South African tax rules regarding controlled foreign companies into account as well as the tax rules of the country in which you intend to operate your business. To determine which location best is for you, many factors come into play, including the type of business and the reasons why you want to register an offshore company. The Accounting Team not only advises you on all tax and exchange rules but assists you in structuring your off shore business for maximum benefit.
Taking your Business or Assets Offshore? We can structure and assist you on your venture.
Capital Growth means Looking Offshore