mandag den 23. februar 2009

An offshore company formation isn’t actually as difficult as it sounds as long as you know what you are doing.

Your company can be a proprietorship, partnership, or a corporation and offshore is simply an expression that means outside of your own jurisdiction, thus not in the country where you reside or even where the bulk of your business is carried out.


An offshore company formation is mainly required to obtain maximum tax or trade benefits and evade legislation which can minimize the business' profitability and be financially depressing for its economic situation.


Some of the benefits for offshore company formation are outlined here.


There is generally a lower taxation tariff to pay in offshore destinations. This is appealing to many organizations as the less tax they pay means the more money they can save thus resulting in an increased profitability for the company. The downside to this though is that you will miss out on any social services a well-organized country generally provides to its tax payers, such as free health care and retirement benefits.


Offshore companies are often governed by much simpler rules and laws concerning their business ventures in comparison to onshore laws in other countries. Onshore companies have to deal with various reporting procedures and follow strict guidelines and rules which can be time wasting and expensive in man- power and many of these are avoided with offshore companies. Offshore businesses can operate more efficiently and smoothly than if they set up their company in their own country and so offshore companies are greatly favored by Internet companies and financial services companies.


Offshore jurisdictions generally require less tax for corporations which can come as a great relief to many large corporations as they are often taxed a lot. Governments are always looking for ways to increase the money in their own coffers and heavily taxing large corporations is seen as a reliable method of ensuring they receive enough money.

Companies can have a good profit before tax is deducted but then once they have paid the tax levied by the government their profits can drastically be reduced, due to these high tax rates, corporations employ tax accountants and lawyers who are experienced and specialized in helping them to reduce their tax bill and locate a jurisdiction whereby their costs can be minimized.


Some offshore jurisdictions are more appealing to corporations for offshore company formation as they have no tax at all, these are called tax havens. Other countries such as Cyprus offer double tax treaties with many countries and have only a small amount of tax to pay.


Locally registered companies generally have to follow strict laws regarding reporting requirements especially if they are a public limited company, this is done to help protect the shareholders against any possible attempt at fraud and also to stop any scams or deception being carried out. If these corporations don’t follow the reporting requirements then they have to pay a large fine. Offshore company formation is popular as there are no reporting requirements to follow or be aware of and so operating the business becomes much simpler and easier.


Another advantage which makes offshore company formation attractive is that it can offer much more privacy than onshore registration. There is no requirement to publish financial statements and they can just go about their business and their competitors are not aware of the state of their business, how much profits they are making or their strategies and this can lessen the level of competition.


The choice to of paying less tax or even no tax at all is the main reason why most companies opt for offshore company formation. In general anyone in business who invests offshore by opening a bank account or by setting up a company receives various tax reduction benefits. By setting up your base in a low or no tax jurisdiction, can save you significantly more money. Thousands of companies decide to open a Cyprus company and set up an International Business Company because of the tax advantages the island offers. Cyprus is not a tax haven, you are still eligible to pay tax if your business is registered there.

However the level of tax is very low in comparison to most other countries and the tax incentives offered by the government make a Cyprus company formation one of the most favorable locations in the world for IBS’s.

For more information contact CCLOGIC.COM they have specialized in Offshore Company Formation.

Also consider to visit our Offshore Merchant Services Discussion Forum for useful information on setting up, Offshore companies, Offshore Bank Accounts and Offshore Merchant Accounts

Businesses choose to set up their office in another country in order to become an offshore company.

An offshore company is one that can conduct business all over the world or just in one country, but its main headquarters or office is in another country. There are various advantages to having an offshore company and these are outlined here.


The main reason the decision is made to set up an offshore company is to reduce the amount of tax paid. Everyone has to pay tax and the better your business is doing and the more money it makes the more tax has to be paid, for any business the tax it pays can reduce its profits by a significant amount. How much tax you pay varies from country to country, some countries have very low tax rates and so save on their overheads.


Offshore companies get to pay less tax as well as having fewer charges incurred on them in setting up and sustaining a business in a foreign jurisdiction. These jurisdictions can often offer better legal protection than the jurisdiction where the company does most of its business. Due to these legal protections offshore companies can choose to set up an anonymous company formation if they want to. Companies prefer to remain anonymous for a number of reasons such as not being welcome in some countries, one such industry is gambling, online casinos and other card playing websites, many companies in these types of industry are based offshore on the small island countries such as Cyprus although most of the people using their services will be from the USA, Canada, the UK and Europe.


Even though forming an offshore company has its advantages there are also problems associated with it. There are many particular companies that necessitate trust and confidence that offshore companies can’t provide. Examples of these types of industries include banking, insurance and financial consultants, some of these types of industries are not allowed to operate through an offshore account. In the US any contractor who works with the Defense Department and other security departments dealing in sensitive information has to be based in the US, by law.


Another point to consider if you are thinking of setting up an offshore company is how it might be perceived by others. The company might not be viewed favorably because of where they are based. Due to the worlds current economic disorder, consumers are not at all impressed with any company they see as stepping on others in order to make themselves richer, although offshore companies are not illegal they are certainly seen as a method of reducing the taxes they have to pay and minimizing their costs. These savings are made at the cost of the government of their own country and can be seen by some as a tax dodge and not only depriving the government of tax but also the people who live in that country.


Offshore company formation has become an accepted way to conduct business with many types of industries and for a variety of reasons. If you are looking to set up an offshore company then it is crucial you find a company or consultant who is reliable, trustworthy and established to organize and manage the procedure in a dynamic and skilled way.

For information on this and on Cyprus Company formation there are companies on the internet that can help. One of them is CCLOGIC.COM also visit our forum at cclogic.net which provides useful information on Offshore Company Formation, Offshore Bank Accounts with Internet Banking and much more.