Benefits on Offshore Companies
(1) Limited Liability of Offshore Companies. Countries and regions such as Hong Kong, Singapore, UK, USA, Australia, New Zealand, South Africa and others offer limited liability as a benefit for the shareholder who can limit their liability by the amount of capital subscribed by shareholders. For example, if a shareholder has subscribed US$10,000 capital to an offshore company, if ever that company faces any legal claims and is required to compensate the claimant, the shareholders would limit the liability to a maximum of US$10,000, even if the claim exceeds this amount. Except for liability concerns, a separate legal entity can divide the company and shareholders, in order that any legal action involving the company would not relate to any individual shareholders but the company itself.
(2) Perpetual Characteristic. Through the separate legal entity benefit, a shareholder can transfer the shareholding to a successor, family members or any third party, who or which can continue to operate the company until the shareholder decides to cease company operations.
(3) Tax Benefit. An Offshore Company does not need to pay Profit Tax, Capital Gain Tax, Interest Tax, Inheritance Tax, Stamp Duty on share transfers. It is simply tax free in all areas.
(4) Privacy. Except for in the Cayman Islands and Mauritius, all the directors, shareholders and ultimate owners’ information and their details do not need to be filed with local governments. Therefore, any third party cannot obtain a search report from a local government on any company information and its structure.
(5) Law.Most of the offshore countries are using the International Business Company (“IBC”) law, which is based on the British Common Law.
(6) Bank Account Opening. All of these companies can open a bank account in any country including Hong Kong, Singapore and other offshore banks including Seychelles, Mauritius, Cyprus and many others.
(7) Time to register an offshore company. It is possible to register a new company in one to two days in some of the common offshore countries (BVI, Seychelles, Samoa, Belize, etc.).
(8) Off-the-shelf (ready-made) company availability. Our company has more than 300 off-the-shelf companies under different jurisdictions. All of these are registered for the purpose to provide an instant company for business. Please visit our off-the-shelf company page to view the list.
(9) Annual Requirement. In general, all offshore jurisdictions (except Cayman Islands and Mauritius) only require the payment of an annual government fee in order to maintain the company in good standing. Local governments do not require the preparation or filing of financial accounts or an annual report on the company’s corporate structure.
(10) Cost.The minimum first time set-up cost and annual maintenance cost are only US$500 and US$725, respectively. There are no further costs. It is very attractive to use an offshore company because there are numerous advantages and benefits.