Offshore FAQ

Frequently answered questions

Offshore companies

  1. What are ways to reduce taxes for individuals or companies through an offshore business company?
    — the use of offshore facilities by individuals would reduce income tax, capital gains tax, inheritance tax, etc. Also, by operating business through an offshore structure companies can defer profits almost indefinitely by using management contracts, insurance, loans, re-invoicing (more appropriate for international trading activities), factoring your debts, etc.
  2. What is an offshore IBC?
    — An IBC is an offshore International Business Company designed to provide maximum privacy and not subject to local taxation. International Business Companies are owned by non-residents and can only operate outside the country of incorporation.
  3. What are possible uses of an offshore IBC?
    — offshore IBCs can be used by individuals and corporates for many purposes, the most common areas of use are tax planning and tax reduction, international trade, offshore investment, purchasing and owning real estate abroad, ownership of intellectual property and protection of certain asset classes, the employment of staff located overseas, and offshore e-business.
  4. How an offshore IBC can be established?
    — it is easier to apply to one of many companies offering offshore company formation services, then probably you will establish an IBC quicker and simpler than if you would do it by yourself. Please check the services they offer, the fees they charge and the speed and efficiency of the service they advertise. It is also possible to buy a company «off the shelf» in a tax efficient jurisdiction.
  5. What costs are involved in maintaining offshore IBC?
    — the costs will depend on the incorporation agent you will choose, extra services you will require and the jurisdiction of incorporation. So, everything entirely depends on the requirements and choices of a client.
  6. What is Limited Liability Company (LLC)?
    — LLC is a special form of offshore company which combines the features of corporations and partnerships, providing for anonymity and the ability to create a customized management structure. From the legal point of view, LLC is separated from its owners, who do not carry personal liability for LLC’s debts and obligations. The operations and management of the LLC are governed by a written agreement among its owners, which is not disclosed to the public.
  7. What are shelf (ready-made) companies?
    — incorporated but unused companies that are waiting to be purchased by a client. Shelf companies are usually necessary to fasten the incorporation process. They can be immediately used even while the incorporation agent prepares necessary paperwork to provide proof and ownership. Shelf companies are usually more expensive as they are older. The choice depends on the activities the purchased offshore company is to be used for.