Are you tired of seeing an increasingly large chunk of your hard-earned financial assets annually ripped away by your country’s excessive personal and corporate taxation? Forming your own offshore company or corporation in a foreign tax-haven is perfectly legal, and could be the answer to your tax problems.
One For Us, One Rule For Google, Microsoft, Amazon etc.
Are you one of the many who have been incredulous when hearing of the miniscule amounts of tax huge companies like Apple, Google, Starbucks and Microsoft have been paying, despite annual profits that run into billions? If you own your own business or company, and you feel you are paying what you consider to be an excessive level tax, this will be particularly irksome.
Why do the governments of supposedly economically and politically sound countries like those of North America and the European Union habitually overtax small private companies? The truth is that despite these nations’ veil of economic fortitude, pretty much every major country in the world is actually bankrupt, and “major economies” like the US and the UK are literally trillions of dollars in debt.
Small businesses struggle to stay afloat, while the likes of EBay, Apple, Google, Amazon and Microsoft earn multi-billions of dollars each year, while paying what seems to be at the most a few million in tax. However, there are key lessons to be learned from these corporate behemoths; 90% of the world’s major companies are either totally or partially based in offshore tax havens. The great news is tax-havens aren’t the exclusive domain of the super-wealthy – pretty much anyone with anything valuable to protect can use them.
The preconception of a tax haven is a far-off Caribbean country like the Cayman Islands or St. Kitts and Nevis where banks keep secrets, no matter how murky. However the reality is your nearest tax haven could be much closer than you think, and their business is totally legal. In the EU alone, the Netherlands, Switzerland, Luxembourg and Ireland offer excellent levels of corporate taxation to foreign businesses. The island of Jersey may not be officially part of the EU, but they too offer specialized banking and outstanding personal and corporate tax rates.
Tailoring Your Offshore Company To Suit Your Needs
No two businesses are completely alike, and what fits the purpose of one organization in terms of its offshore dealings may not suit your particular company. Every business has its own specific needs with issues and problems that require specific solutions. The formation of an offshore company is not strictly about hiding money and evading taxation.
In reality, offshore banks offer 100% legitimate strategies that are completely legal and offer high net worth individuals, international business owners and corporations the chance to dramatically reduce the amount they pay on taxes each year. The result is that instead of having the life drained out of a fledgling business by excessive taxation, it is able to grow and flourish.
How To proceed In Building Your Offshore Company
People who feel the need to open an offshore account in a tax haven do so because they believe they have an asset worth protecting. Would you place yourself in one or more of the following categories?
- A wealthy high net-worth individual, your wealth achieved by business or inheritance
- A successful stock broker
- The impending beneficiary of a will or an inheritance
- The owner of a valuable piece of property (e.g., real estate, car, art, antique, rare collector’s item, coin collection, stamp collection, etc, etc)
- The owner of intellectual property rights (i.e., creations of the mind – books, screenplays, musical compositions, paintings, sculptures, computer programs etc)
- The owner of a successful web-based or e-commerce business
- The owner of a successful land-based company
If you answered “yes” to one or more of those categories, you are a legitimate candidate to establish your own offshore company. However, not everyone in those categories feels the need for the services of a tax-haven. Ask yourself a simple question: Why do you feel you need to set up your own offshore corporation/company? If the answer is one of the following, you have a legitimate reason to proceed with your goal.
- Your country’s government’s tax laws are stifling you and/or your business and stopping its growth
- You are facing what you consider to be unfair litigation and you want to protect your corporate assets
- Your country is going through a period of economic instability or political unrest or both, and you wish to protect and preserve your company and its assets
If you answered “yes” to at least one of those options, you are definitely a legitimate candidate for ownership of an offshore company. Now that we have established your credentials, the next steps are choosing the right tax-haven location, and the type of offshore company that will best suit your needs.
Which Countries Are The Best Offshore Tax-Havens?
Once again, the location you choose to set up your offshore company depends very much on your own personal needs. If you are setting up an offshore company to deal with the assets of a large and complex business, with regular incoming and outgoing money transactions, and with the emphasis on maximum discretion, right now the Netherlands are setting the standards in Europe, with 80 of the world’s 100 biggest companies based in Holland in some form or other.
Bermuda and the Cayman Islands are the most popular corporate locations in the Caribbean, while Central American countries like Panama and increasingly Guatemala have long been particularly popular with US corporations.
If you are protecting a relatively small asset like an inheritance or piece of rare artwork, you will likely want to keep it close by, and if you are European, this might mean Ireland or Jersey. However, the reality is that for personal assets, European banks are liable to EU disclosure laws, so if you don’t want to pay annual tax on your Jackson Pollock, or that inheritance your late Grandmother left you, you will need a location with complete discretion, and that means the Caribbean and Central America.
If you wish to use a location that is less high-profile than Holland, the Caymans or Panama, but still has a rock-solid reputation as a tax-haven with complete privacy, Caribbean Islands like St. Kitts and Nevis, Antigua and Barbuda, Dominica and Grenada offer the same services as Bermuda and the Caymans, and even offer the possibility of ownership of their citizenship and passport for a financial investment.
The Panama Papers Proved Everyone Wealthy Does It
In 2015, the corporate world was rocked by the “Panama Papers” scandal, which was the leak of some 11.5 million documents from a major Panamanian law firm, revealing an illustrious client list including everything from corporate heads to royalty and world leaders, politicians, police chiefs, celebrities and sportsmen. It proved a major embarrassment to Panama, not to mention the thousands of wealthy investors exposed, but revealed just how many of the world’s wealthy use tax shelters to safeguard their assets.
While the scandal was negative publicity for Panama, it has proved beneficial to Guatemala, which for the time being at least, enjoys a far lower profile than its Central American neighbor, resulting in many clients switching allegiances.
Some countries listed as tax-havens offer excellent rates and services, but there is an inescapable fact that their very existence is precarious. Hong Kong for example is a tax haven, yet China increasingly flaunts that region’s rights, even sending secret police to arrest billionaire businessman Xiao Jianhua at Hong Kong’s Four Seasons hotel. If China can do that, how secure would an offshore Hong Kong account really be?
The same worries would apply to so-called Middle Eastern tax-havens like Dubai and Bahrain. The Middle-East is a constant powder-keg ready to explode, and therefore surely a precarious location to park ones assets.
Still confused? Don’t be; 2ndPassports.com can help and advise you choose exactly the right location to establish your offshore company!
What Type Of Offshore Company Do I Need?
When it comes to setting up an offshore company, there are four basic options:
- IBC – International Business Company: An international business company or international business corporation (IBC) is an offshore company formed as a tax neutral company.
- PLC – Private Limited Company: A type of public company under the United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland.
- LLC – Limited Liability Company: A corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities.
- GBC – Global Business Company: An account designed specifically to protect the assets of an internationally established company.
Once again, 2ndPassports.com can assess your particular needs, and come up with the offshore option that best suits you or your company.
We at 2ndPassports.com have almost 15 years’ experience helping clients obtain second citizenship and a new passport that invariably changes their lives dramatically. Because we regularly deal with Caribbean and Central American government departments, often assisting our clients in their endeavors to find banks in such locations for their specific needs, we have a deep knowledge of the inner workings of offshore tax havens, and are therefore in a privileged position when it comes to imparting advice.
For further advice and information on creating and establishing your own offshore company, feel free to contact us via email, WhatsApp or Telegram. If you prefer you can chat to one of our expert representatives directly – you can call us using our encrypted phone and Skype lines. All of our contact details are listed at the top of the 2ndPassports.com homepage.
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