Advantages of Offshore Companies
Are you considering acquiring an offshore company as part of your asset protection plan? You must consider which jurisdiction in which to establish your off shore company as well as what type of offshore company structure to set up to maximize asset protection, privacy, security and ease of operation.
Choosing the Jurisdiction for Offshore Companies
Country of jurisdiction is especially important when choosing a bank for your offshore structure. The Jurisdiction of your offshore company or offshore companies is still important. Different countries have different laws regarding the formation of companies and how they operate.
Choosing the Type of Offshore Company
The bearer share company is the most secure and private kind of off shore company. Such offshore companies are often called Sociedad Anonima, abbreviated as S.A. In some jurisdictions, the shares of the company can be blank. The names of owners are not recorded in any public registry. Not even the government knows who owns the shares! Bearer share offshore companies of this type can be formed in Panama or Guatemala.
Whoever holds the bearer share controls the company—albeit with complete anonymity! Banks and governments monitoring the wire transfer system will not be able to detect that you are the actual person behind the corporate entity transferring funds. Privacy and security go together--you need privacy for the sake of security. The bearer shares do not necessarily have to be kept by the registered agent in the jurisdiction of registration. Changes of ownership do not have to be reported to any government or agency.
Nominee directors appear in the public registry—persons unknown to you, supplied by the law firm that formed your corporation. These nominee directors’ names appear in the public registry. Beyond that, they have little power and cannot access the off shore company’s bank account. They are not signatories on the bank account. They don’t even know the account number. And you, as current signatory, must approve any change in bank account signatories. Nominee officers are a safe way of protecting the financial privacy of your offshore company’s funds.
Offshore Companies and Laws
You must form your offshore company in a country with statutory corporate privacy, which means that it would require a court order from a court in that country to force your off shore company to disclose information. These court orders are generally only granted in cases of major criminality, not taxation.
Even then, if the bearer shares have been traded or sold, re-traded and resold, it can be very difficult to find out who the owners of a bearer share offshore company are. Incorporate in a jurisdiction that doesn’t require you to keep the books and records in the country of incorporation.
Taxation and Taxes for Offshore Companies
The country you choose should not tax offshore-derived income. In Panama, your offshore corporation does not even have to file a tax return. Additionally, you should choose a country with no tax treaties in place. Tax treaties could lead to sharing of information as well as higher taxes for your offshore company. |
