The modern world of offshore consists of a huge number of offshore jurisdictions. A bit variety of classic offshore companies are registered in all parts of the planet.
Classic offshore. In order to conduct a successful business in an offshore jurisdiction not only your plans and goals must be clearly understood, but also the benefits and other privileges that are available when incorporating a company in any offshore jurisdiction.
It is no secret to anyone that an offshore company is often used as a tool for tax burden reduction. However it must also be realised that an offshore business it is not only the key to successful tax optimisation, but it is a powerful and effective way to protect your business from all enemies.
Unstable situations in a country such as unrest, crisis, raiding etc. are all threats to your business. Registering an offshore company abroad will help to minimise such risks and stay incognito protecting your company’s property and assets. Additionally, such business can open a bank account privately which is a great benefit for confidentiality matters.
Any businessman who ever thought of “going offshore” will encounter the uneasy decision of choosing an offshore zone that would be most suitable for the needs of his business. There different types of offshore jurisdictions, but nowadays the main players in the offshore fields are classic and midshore jurisdictions.
Classic offshore company and midshore jurisdictions
Classic offshore jurisdictions are the most popular destination for offshore companies. They can even sometimes be called as “offshore cliché”. But clichés are not always suitable for running any type of business. Recently, the classic offshore world has seen a growing competition from midshores. Midshores, are still low-tax jurisdictions, however they are placed in the white list of the OECD. This definitely and significantly increases the prestige of those jurisdictions.
What are the examples of such midshore jurisdictions? Nowadays countries such as Cyprus belong to this category. Only a few years ago Cyprus still had the status of being offshore – today it faces offshore list. Now it is a jurisdiction with low and flexible tax base that can successfully build an international business to save on taxes and the payments of dividends or interest through an extensive network of agreements to avoid double taxation.
Malta also belongs to this list. Legislation of this country is especially attractive to holding companies. As the country was struggling to attract foreign investment to sustain its economy, earlier this year the country has approved a program of individual investors of Malta – under which any successful investor can purchase a European passport of Malta.
Among the popular midshore jurisdictions it is also worth mentioning Hong Kong. Hong Kong is an autonomous region of North Korea that certainly has a beneficial effect on any business that is associated with Asia. Hong Kong – is a modern financial center, which is quite affordable that allows you to incorporate your company for less.
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