|
|
 |
| |
Why do people go offshore?
Who would not wish
to be subject to a low or zero taxation on his or her incomes? It is a dream
perhaps of each individual to be subject to such a tax jurisdiction, which
does not impose any tax obligations or only a low or acceptable tax rate
on legal entities and/or natural persons. The locations which have an advantageous
tax regime are known as "tax heavens". The business world uses
the term "OFFSHORE" for tax-advantage locations, which are connected
with the complete accompanying industry of services and acts. Thus it is
possible to deal with such terms as offshore registered office, offshore
company, offshore financial centre, offshore strategy and a number of other
offshore services which are provided to tax-advantage companies (i.e. to
so-called "offshore companies"). Our clients can be divided into
three categories according to our experience:
1) The first group of the clients is represented by those clients who have
clear ideas about a specific jurisdiction and structure, bank accounts,
etc. These clients obtain complete first-rate services from us, on the basis
of maximum confidentiality.
2) The second group includes those clients who are interested in tax optimising,
who are not satisfied with the results of their tax advisers in the field
of tax planning, but they are not familiar with the OFFSHORE issues.
3) The third group includes the clients who would like to establish a bank
or insurance company.
The offshore locations have developed, in the course of several dozens of
years from the creation of the legislative base for establishing tax-advantage
companies in their jurisdictions, sophisticated tax systems which apply
to offshore companies. Almost every offshore location which is the subject
matter of formation of offshore companies places emphasis on:
- Protection of assets of a company and natural person
- maximum confidentiality and anonymity
- minimum interventions on the part of authorities
- non-restriction during capital transfers
- low or zero taxation of incomes
ASSET PROTECTION
Protection of assets of the company and founders is an important aspect
which can play an important role during selection of a suitable location
for formation of an offshore company. A majority of classical offshore locations
have drawn up laws which place special emphasis on asset protection.
The applicable jurisdiction thus provides a high-quality of protection to
the company, founder and shareholders with regard to possible judicial decisions
of third countries, protection from property forfeiture, nationalisation,
etc.
CONFIDENTIALITY AND ANONYMITY
A majority of offshore jurisdictions adopted laws guaranteeing nondisclosure
of confidential information, through which any disclosure of information
about founders, shareholders or stakeholders of an offshore company to third
persons, public or state institutions and governmental authorities is excluded.
The disclosure of this information is punished by strict financial sanctions,
including possibility of imprisonment without suspension. The anonymity
may be fostered by a number of legitimate steps, such as issuing bearer
shares, appointment of nominee directors (see Chapter "Nominee Services")
or by using other ways so that the real founders and users of an offshore
company could carry on their business activities in full confidentiality
and anonymity.
MINIMUM INTERVENTIONS ON THE PART OF AUTHORITIES
Almost all classical offshore locations do not require the offshore companies
to conduct accounting records, have audits made, issue annual reports or
tax their profits by using a percentage rate, as we know for example from
Cyprus. The taxation of profits is thus limited to a simple settlement of
affordable lump-sum amount, on the basis of which the company will gain
a certain tax exception or full tax exemption.
In a majority of cases, the authorities do not force the offshore company
founders, through legislative tools, to perform the actual establishment
of the company directly on site or to convene General Meetings and pass
resolutions in the countries in question. The interest of the authorities
are most that the company should pay in time all fees, lump-sum taxes and
conduct its business activities in a legitimate manner.
At present we know approximately 80 tax heavens, if we accept the definition
according to which it is the jurisdiction where companies are taxed at a
rate from 0 to 15 It is especially the following countries that belong among
the leading offshore centres:
EUROPE:
Cyprus, Malta, Andorra, Gibraltar, Jersey, Guernsey, Sark, Isle of Man,
Ireland, Madeira, Liechtenstein, Switzerland, Luxembourg, Hungary, United
Kingdom, Alderney, Iceland, Canary Islands, Montenegro and Monaco.
AFRICA:
Seychelles, Mauritius, Zanzibar, Liberia, Republic of South Africa, Anjouan
and Djibouti.
ASIA:
Labuan, Hong Kong, Singapore, Macao, Arab Emirates, Oman and Bahrain.
NORTH
AMERICA:
Under very specific circumstances Canada or certain federal states of the
U.S.A. (Delaware, Nevada, etc.).
CENTRAL AND SOUTH AMERICA:
Belize, Costa Rica, San Salvador, Panama and Uruguay.
CARIBBEAN
COUNTRIES:
Bahamas, Turks and Caicos Islands, Cayman Islands, British Virgin Islands,
Anguilla, American Virgin Islands, Antigua, Nevis, Montserrat, Netherlands
Antilles, Dominica, Saint Vincent, Saint Bartholomew, Barbados, Grenada,
St. Kitts, St. Lucia and Aruba.
PACIFIC REGION:
Vanuatu, Nauru, Tuvalu, Marshall Islands, Tonga, Cook Islands, Samoa, North
Marian Islands, Palau and Niue.
SELECTION OF A SUITABLE
LOCATION AND LEGAL FORMS OF COMPANIES
A number of offshore locations makes it possible to establish the following
types of tax-advantage companies:
- investment companies
- business companies
- holding companies
- managerial companies
- bank companies
- insurance companies
- re-insurance companies
- shipping companies
- foundations
- trusts
- funds
- e-commerce operating companies
- lottery companies
- etc.
In order to make a suitable selection of the location, we need to know answers
to the following questions so that our consultants can provide you with
qualified and professional advice, what legal form of the company should
be used, in which location and at what prices.
Most of all you must realise the following aspects:
- Whether you want to make use of Double Taxation Treaties or not
- What annual costs you can afford
- What level of anonymity you require
- Whether the company should carry on business activities, invest or operate
as a consulting company
- In what locations the company will do business
- Whether the country in question is to be accessible for a significant
market
- Whether you plan to issue bearer shares
- What level of registered capital the company should have and what are
the requirements on its repayment
- Whether you will use nominee services or not
- What is your current turnover or profit
- How rapidly the company should be established
- Whether the company should conduct accounting books or not
- Whether you will ensure audit by yourself or whether you order this service
from our company
- etc.
When we know answers to these basic questions, we can propose further possibilities
to you and to narrow the selection of particular locations and legal forms
of companies which are optimum in our case. At the same time we will help
you find a legitimate mechanism, through which it is possible to optimise
your current tax burden to an optimum level, possibly even to a zero level .
It is a well-known fact that 2/3 of the existing liquid capital comes from
offshore locations. This is a logical consequence of the end of the nineteen
eighties when some countries started to apply, quite illogically a sharp
increase in taxes and restrictions while the others preferred tax reductions
and removal of restrictions.
The locations where only a few thousands of rich tourists were going to
spend there a luxury holiday rapidly became leading financial centres of
the world, which offer liberal environment and jurisdictions for every qualified
client or investor.
Cayman Islands, Bahamas, Aruba and Nevis are home countries of tens of thousands
of offshore companies which need not be visited by their founders for the
purpose of the actual establishment and operation either. Everything can
be arranged for with the help of your fax or PC from the comfort of your
office.
At present when high-quality communication means are available at all places
of our planet (and of course also in offshore locations), you need not have
any worries of how to manage an offshore company and bank accounts without
any excessive burden of useless bureaucracy.
As a standard we provide complete legal, tax, administration and managerial
services, such as:
- Registered office, including telephone and fax services for offshore companies
- administrative and secretary services
- contracting of directors, shareholders, secretaries within the framework
of Nominee Services
- establishment of a registered office at a prestigious address with telephone
and fax connections in some of 250 locations
- E-mail and www sites
- opening bank accounts at a partner banks
- direct internet banking services for easier control of your bank account
- credit cards VISA and Master Card
- private banking services and individual approach
- e-commerce
- investment advisory services and asset administration
- conducting of accounting books in all jurisdictions, where companies are
established
- audit and tax return preparation
- taking over of a complete administration over the company
- complete services and advisory services in the field of offshore businesses
- and a number of other specific individual offshore services.
If you have questions about offshore services please contact us.
|
|
| |
|
