International trading
Import and export transactions can be greatly facilitated by the use of offshore companies.
Investment Companies
An offshore
company is often used to make investments.
In most jurisdictions 'withholding tax' is levied on income
remitted out of the jurisdiction, but the careful use of double tax
treaties can reduce tax on the investment income.
Property Owning Companies Owning overseas property through an offshore
company gives a number of advantages, -
with regards to inheritance tax, capital gains tax and death duties.
- The
process of sale is simplified. Probate Ownership of a portfolio of investments,
properties or other assets though a single offshore holding company
can simplify probate procedures upon the owner's death. Probate can be
applied for in the offshore jurisdiction rather than in several
different countries where the assets are located. Legal fees are
reduced and publicity may be avoided. Consultancy and
Services Consultants and those providing services such
as musicians and entertainers often receive much of their income from
overseas. Employment overseas is often facilitated by
the use of an offshore employment company. This can either employ an
individual or a group of individuals working overseas. Ship and Yacht Ownership It is often advantageous to own a vessel in
an offshore location. It can also provide an easy registration
procedure for yachts which in certain countries can only register on
the major national register with onerous compliance requirements. A
separate offshore company may be formed to operate or charter the
vessel. Asset Protection A Trust can be established whereby the
Settlor, having handed over his assets to the Trustees, no longer owns
these assets so they cannot be seized in cases of insolvency, marital
proceedings or professional negligence. Trusts are excellent asset
protection vehicles and are thus valuable devices in times of
political and economic instability. Family Wealth Protection Trusts are often used to protect the
continuity of family wealth by imposing conditions on the use and
distribution of the moneys on present and future generations. Trusts
can be used legitimately to avoid 'forced heirship' provisions
affecting inheritance. Inheritance, capital gains and income taxes can
all be minimized in this way.