PURPOSES OF OFFSHORE COMPANY FORMATIONS

There are many reasons why a person may wish to incorporate an offshore company and place assets offshore and we should like to briefly explain the advantages and types of offshore activity being carried out offshore by many people from around the world.

In our next section titled Introduction to Offshore Territories we will explain how to choose an offshore finance centre, summarise key characteristics from a list of the main offshore territories and some onshore territories. Each summary is supported by a more detailed offshore company formation data sheet.

We will then go on to explain the different concepts of taxation in an offshore territory and its interaction with the beneficial owner and thereafter provide you with a statutory profile of the limited liability company and some other offshore vehicles.

Each offshore territory has its own characteristics and many so called offshore territories are in fact land locked e.g. Switzerland, Luxembourg, Andorra etc.

There are many offshore territories which are well regulated and politically stable and free from exchange control. These territories are attractive to people living in countries with political unrest, weak currencies and severe exchange control. These offshore jurisdictions provide a tool for people to plan their financial affairs to preserve wealth, pass their wealth on to their children, preserve privacy and reduce the risk of confiscation by the state or other activity.

The key features of being offshore are strict secrecy and privacy. Assets are also held through a vehicle in a territory where they are not subject to taxation in that jurisdiction.