Things to Know Before Going for an Offshore Company Registration
Perhaps doing business in your own country is getting too expensive because of the tax dues, and corporate, and licensing expenses. Incorporating elsewhere might just be the perfect way to reduce cost and protect your business from the financial loss. While there is no one size fits all jurisdiction or incorporation package that will make businesses fall magically into place, there is always the best jurisdiction for your own offshore company registration—one that ensures proper structuring and good charge rates to help your success. This said, it is critical that you choose the right offshore companies registration partner to assist you with incorporating requirements.
Unfortunately, there are lots of bait-and-switch operations marketed on the web that offer cheap prices, only to require or “suggest” that you add several companies and incorporate a trust into the bargain. Others still, charge significantly low rates, but for an off-the-shelf offshore company registration without any customization, support, or assistance in maintaining compliance. In reality, however, the simplest incorporation structures are usually the best, especially for those who need to accomplish offshore reporting requirements.
Whereas, the place you reside is a critical component of a decision to embark on offshore company formation because of a merely earning income through a foreign company. All the way living in some high-tax country won’t automatically help you reduce taxes due to the factors like offshore income exclusions, tax residency, CFC rules, etc. Additionally, living in certain countries often makes you ineligible to initiate offshore companies registration or access offshore tax benefits there. Because of this, it is important to know your preferences as to your place of residence and the kind of lifestyle you wish to lead as you select an offshore jurisdiction to incorporate your company. Tax systems in different parts of the world may leave you with a zero tax company in a certain jurisdiction and require you to pay corporate tax in your country of residence. This is all the more reason to hire an offshore companies registration partner to help you figure out your best options.
Also worth noting is the location of your target customers. Naturally, you want your business to live where your customers do. However, most businesses today are location independent, such as internet businesses, which makes offshore registration a perfect structure of choice, especially when you sell worldwide. Selling primarily to a particular country, on the other hand, would require structure compliance with the same country.
About the Author:
Sterling is a leading licensed and regulated corporate, trust, fiduciary and fund services provider delivering specialized solutions for a global clientele of international corporations, institutional investors, high net worth individuals and families as well as their intermediaries. Whether an end user of our services or an intermediary, Sterling provides an efficient, personalized approach to ensure smooth, efficient delivery of services that meets the requirements of each client.