There is no doubt that you have heard about such offshore destinations like Panama, the British Virgin Islands, Belize or Anguilla. These countries are now gaining popularity and are known for relocation of existing companies to overseas jurisdictions. At the same time, businessmen often decide to start new companies in the offshore jurisdictions to work within the new markets, manage taxes and increase profits. Do not think that offshoring is illegal: professional approach allows you to make everything in a legal scope.

Let’s analyze every advantage of going offshore step by step.

Taxation Advantages. Lower is Better.

First of all, moving your business offshore allows you to lower tax burden. Try to compare taxation level in the UK or the USA and in offshore territories - where property, capital gains, dividend and other taxes are very low. Furthermore, Bahamas, Isle of Man, Bermuda, Bahrain and the Cayman Islands don’t have any corporation taxes at all. In contract, the corporate tax in countries with advanced economies is exceedingly high. Setting up an offshore or an international business company (IBC) is convenient for both, young entrepreneurs who want to start smoothly as well as for experienced businesses eager to improve too thanks to the low tax rates in offshore jurisdictions. Unquestionably, you still have to legalize your business, act under specific legislation and in accordance to the local law.

No Double Taxation, No Cry.

Those, involved in the International business, often consider how to avoid double taxation. This means how not to be charged twice for the same operation in two countries. Here you can find a legal solution: territory with a double taxation agreement with your home country.

Lower Organizational and Administrative Costs.

Incorporating company, finding office, director, hiring personnel, operating physical office and paying wages: these are all organizational and administrative costs. Sending your business offshore is a perfect way to optimize these expenses and pay more attention to the business itself. For example, you can set up an IBC in offshore jurisdictions for $700 USD only! Low company formation costs in overseas territories help them to attract more businesses. Also, there are many countries where you do not have to have a physical office or localof employees.

Offshore Banking Facilities for Your Business.

Benefits offshore bank account offers for your business differ from basic services a lot. Opening an offshore bank account will offer your company various benefits. There are different currency options, risk protection and high deposit interest rates. This implies that opening a bank account overseas is a great idea for the international company. However, offshore banking is still perceived with caution in some countries. Frauds, money laundering, tax evasion are still popular crimes, therefore it is important to analyze your chosen jurisdiction. This is why we recommend thoughtful planning before going offshore, especially with banks.

Reaching Every Market and Giving Access to Your Market.

Some international markets are hard to reach and here you can use offshore as a way to go in. For example, setting up an offshore company in Hong Kong can get you closer to the Chinese market. It is a wide-known fact that it is one of the most detached markets in the world. At the same time, if your customers can not use your services in domestic country, it is a nice way to help them to reach your business.

Setting Up Has Never Been Easier.

No bureaucracy, no paperwork, no unbearable payments. This is how incorporating a company sounds in the offshore jurisdictions. Policies of the most offshore territories are simplifying this process to attract more businesses and more investments. If you are working on business effectiveness, moving your business to a suitable offshore territory is a reasonably good idea. It is undeniable that minimizing business costs and maximizing profits is the main task of every entrepreneur worldwide.