5 Legal Benefits to having an offshore formation

If a company wants to have an offshore account, they might not know about its many benefits. An offshore account is a completely lawful option which businesses can select and, when a company chooses to have it, there are many legal benefits which can be taken advantage of.

A company pays less tax

Many countries which offer offshore accounts only charge a very low rate of tax. There are many tax haven countries in the world such as Barbados, Antigua, Gibraltar and the Cayman Islands. However, not every country charges international businesses a low rate of tax. For example, a 75% rate of tax has to be paid by businesses in France when their profits exceed one million euros (£800,000). Therefore, you should find out the exact tax rate which would have to be paid long before you enquire about starting an offshore account in a particular country.

It’s difficult to find out who an account holder is

In many countries which offer offshore formation, it can be very difficult or impossible to find out who owns an account. The exact opposite might apply to the country which a company is currently in because a third party could find out who an account holder is. In fact, it is illegal in countries which provide offshore accounts to disclose information about an account holder to anybody. Consequently, personal information which shouldn’t be shared won’t be known by anyone else.

Less money is spent on staff wages

The minimum wage in countries which enable businesses to have offshore accounts can be very low. In fact, the minimum wage in the country which you want to form an offshore account in could be considerably less than what UK workers receive. Not only can a business pay a lower rate of tax but the amount of money which is spent on staff wages could be less as well.

It doesn’t take long to establish an offshore account

The process of creating a bank account in the country which a business is in can take a very long time. However, many countries enable you to form offshore accounts very quickly and less paperwork has to be completed in order to do so. Therefore, you could easily form an offshore account after only a couple of hours and a considerable amount of paperwork didn’t have to be filled in.

A business is protected from lawsuits

When a business is formed in the UK, its profits and assets are not a separate entity. However, an offshore account is the complete opposite because any profits and assets are not connected to a business. Therefore, lawsuits never consider the profits which a business makes and it can retain every single penny. If a business has considerable debt levels, revenue which has been earned in its offshore account is never used to repay creditors.

This article was brought to you by http://offshore.a1companies.com/  They are specialist agents in setting up an offshore company. For assistance on starting a new company offshore visit their website.

Comments are closed.