Tax havens

  • In general, a tax haven is a country where taxes are either levied at a low rate or none at all. Well-known examples of tax havens are Panama, Belize, the Seychelles, the Cayman Islands, the Isle of Man and Hong Kong. Very often such areas are also referred to as offshore companies, with companies registered in these jurisdictions being referred to as offshore companies. An offshore corporation is a corporation that is formed to operate and conduct business outside of the jurisdiction in which it is formally incorporated, as well as outside (or outside) the residence of its directors, shareholders and beneficial owners, which may be in certain jurisdictions be critical to tax planning. Typically, an offshore company is formed to obtain certain legal or tax advantages, to accommodate a certain corporate structure, or to protect the confidentiality of the beneficial owner and / or asset owner.

    It is widely recognized that in the modern, dynamic business environment where most countries work together to create an intergovernmental tax oversight system, it is becoming increasingly difficult to achieve your business and personal goals. Tax havens offer the perfect environment and the right tools to create a unique, functional corporate structure that suits your needs. Confidus Solutions offers you the most efficient solution that is precisely tailored to you. Features and advantages of offshore companies Reducing tax revenues and maintaining confidentiality are not the only benefits of starting an offshore company in a tax haven. While tax planning is one of the great advantages of offshore companies, the ability to significantly reduce operating expenses and maintenance costs is also a very attractive benefit. 

    Below you will find the six main benefits of incorporating an offshore company in one the tax havens listed here:

    Tax reduction
    Incorporating a company in tax haven provides a legal means to reduce the corporate taxes levied, and this is usually one of the main arguments for relocating your business to an offshore. Non-resident companies can enjoy a low-tax regime depending on the jurisdiction of incorporation. Bear in mind that international tax regulations can be extremely complex nowadays, and it is essential to consult with an experienced tax specialist. It is vital to ensure that there are no conflicts with corporate tax obligations in the jurisdiction where the business actually operates.

    In some tax haven jurisdictions, non-resident companies are not obliged to make public any financial documentation or private information relating to directors and shareholders. Most offshore jurisdictions will not pass on any of this information to third parties, including other countries, unless the individual is suspected of involvement in criminal activity.

    Simple maintenance
    Usually, there are no strict requirements or obligations regarding company management, so the directors and executive staff may make decisions remotely, using power of attorney or nominee services. The need for staff and physical premises may be met by the elegant and cost-effective solution of virtual office services.

    Asset protection
    Many offshore jurisdictions can be used as valuable corporate tools for asset protection. Typically, offshore legal entities are used for holding intellectual property rights or real estate investments.

    Lower expenses
    Comparing onshore and offshore jurisdictions, offshores usually offer a faster and more straightforward company incorporation procedure. Annual maintenance is usually easier and cheaper as well, making company registration and maintenance much more affordable.

    Lower minimum share capital requirements
    Incorporating an offshore company usually requires only a very small amount of share capital, and in certain tax haven jurisdictions there are no capital requirements at all, allowing you to minimise the cost of incorporation.