Overseas or offshore Companies

Overseas or offshore companies, similar to Belize companies, refer to legal entities that are used for international trade. One of the main features of offshore companies is that they are tax free or can be taxed at very low rates. Overseas of offshore companies are incorporated by non-residents given that for effective use as a tax exempt entity, offshore companies have to be operated in a foreign country under the condition that international income earned by non-resident people and corporations are not subject to any form of taxation by the jurisdiction in which the company is incorporated.

Offshore companies are legal entities that are independent and separate from their directors and shareholders. They are considered juridical persons and therefore are capable of taking actions equal to any natural person in terms of contract signing, opening bank accounts, taking legal action, acquiring debts and liabilities, being able to be sued, and entering into different business deals and ventures.

Overseas or offshore companies have limited liability. This is the trait that creates a clear legal distinction between the assets that are the personal property of the company’s members and those that belong to the company. The effect of this is that in the event of loss, the personal assets of the directors and shareholders of the company would be involved. Instead, only the assets that were invested as capital for the offshore company would be implicated. Besides this main form of asset protection, offshore companies safeguard assets in a special way. This can be done by transferring a certain portion of personal assets to the overseas or offshore company to reduce personal net worth. If the company is not actively involved in trading but is used for receiving and making transfers by managing an offshore account, that portion of assets that is transferred to the offshore or overseas company becomes the property of that company. If the directors or shareholders were to suffer any personal loss through a lawsuit or unfortunate incident, they would have a certain portion of their wealth protected in the company. This reduces and limits loss and serves as a means of hedging against risks.

Offshore companies are incorporated and registered through a Registrar and the incorporation process is facilitated by a licensed agent. An oversea or offshore company can typically be incorporated with one member. Members of an oversea or offshore company can include both natural and legal persons. Shareholder and director positions can be shared among or between the members or can be held by a single person if the company only has one member. Except of set up as an LLC, an offshore business company that is an international business company or IBC must have a board of directors. The LLC in the other hand has members, and managerial responsibilities and positions can be allocated in accordance with a Member Agreement.

Overseas or offshore companies are often exempted from tax obligations and can therefore employ different tax planning strategies with the use of a financial planner or tax lawyer to reduce their overall tax burden.

Overseas or offshore companies are often exempted from tax obligations and can therefore employ different tax planning strategies with the use of a financial planner or tax lawyer to reduce their overall tax burden.