What is an offshore company?
An offshore company, known as an international business company (IBC) may consider to be a company registered outside a country that an owner is residing. Similar to a domestic company, an offshore company can operate a business, own property, open bank accounts, etc. However, it cannot carry out its business in the country of formation, which means it only conducts its business outside the country of formation. Besides, most entrepreneurs open an offshore company with the aim of optimizing tax because it generally does not have tax obligations in the country where it was formed.
Benefits of setting up an offshore company
One of the biggest benefits of offshore companies is that they are generally a tax neutral, which means the company is exempt from a corporate tax. In fact, offshore jurisdictions are usually considered to be business-friendly because it is easy to register a company, and it has low corporate tax rates or even tax neutral.
Simplicity of setting up an offshore company
Many entrepreneurs often believe that registering an offshore company is a complex process with many stages and lengths of time. However, the process of offshore company formation in many jurisdictions is a quick and seamless process. In fact, the process only lasts from 1 to 4 weeks. Besides, it is not required to hire employees and conduct business activities in a country in which the offshore company was registered.
A method for the business development
It is no doubt that globalization is being, so it is essential for businesses to expand their business scale to a global scale. The business will be more convenient to do business with both domestic partners/clients and foreign ones thanks to the offshore company.
A better banking infrastructure
If you wish to expand your business internationally, an international bank account will be much more important to your business. In fact, the bank account gives you benefits such as high security and protection, easy management of the account and fast and effective global payment with clients/partners in foreign countries, etc.
Generally, entrepreneurs often choose offshore jurisdictions such as British Virgin Island (BVI), Belize and Seychelles to set up offshore companies, but they are not encouraged to open corporate bank accounts in these countries. ACE Global Accountants will give them a better infrastructure to open an offshore business bank account, which is opening the bank account in Singapore. Although it is more complex and difficult to open the bank account in Singapore for the offshore company, it should be considered to do thanks to many advantages. Especially, Singapore is always being as a leading of the financial center of Asia. Read more about Benefits of opening a bank account in Singapore, click here!
Asset privacy and safety
Forming an offshore company in a jurisdiction means you have a strong layer of protection from future liabilities. In fact, your offshore information including an owner, director(s), shareholder(s), sales or debts is not available to the public. The offshore company will be strictly kept confidential information to ensure the rights of company owners. This is also one of the advantages to consider when you intend to set up an offshore company type.
If you would like to form an offshore company, contact us for free consultation!