Offshore Companies Versus Onshore Companies


Offshore Companies Versus Onshore Companies.

Offshore companies and onshore companies are essentially the same. An offshore company can in fact carry out the same types of business as onshore companies and the liability of its shareholders is generally limited to the amount of capital they have invested into the company

The key difference between onshore and offshore companies is that the tax rate applied by the government in the jurisdiction in which an offshore company is incorporated is very low if not zero. In some jurisdictions, offshore companies offer a high level of confidentiality which onshore companies do not have.

Usually an offshore company cannot operate in the jurisdiction where it has been incorporated. This is true for Liberia, Belize, BVI, Delaware and most other jurisdictions. An exception is Panama, where an anonymous company can at the same time operate offshore at a zero tax rate and onshore at the local tax rate.

Generally speaking, the formation of an offshore company is quite simple. Management and administration of an offshore company is also easy but it requires some planning.  In fact, a company does not need to be administered in the country of its incorporation. You can have a company incorporated in Belize and its administration set up in Panama.

We set up International Business Companies (IBC) in Panama, Liberia, Belize and other jurisdictions around the world. What you need to think about is the objectives you want to achieve by setting up an offshore company: Do you need confidentiality?; Do you need to operate freely in European countries?; Do you need to operate in countries which have a double taxation agreement in place?; or Do you need to protect your company assets from confiscation or expropriation orders or similar actions by foreign governments?

You do not know sure how to evaluate offshore companies versus onshore companies? Based on your business needs, ISOG lawyers and attorneys at law will provide you with the best available options for company incorporation and banking services.