Released on: March 11, 2008, 6:54 am

Press Release Author: For More Free Resources visit www.greateducationonline.com

Industry: Management

Press Release Summary: When it comes to the term 'offshore' used in conjunction with
company incorporation, the term 'offshore' generally refers to any jurisdiction
other than one in which the company incorporated will conduct the majority of its
activities.

Press Release Body: When it comes to the term 'offshore' used in conjunction with
company incorporation, the term 'offshore' generally refers to any jurisdiction
other than one in which the company incorporated will conduct the majority of its
activities.

Usually such a jurisdiction has some degree of taxation or reporting benefit
attached that makes it attractive to the company owner, and the concept of
incorporating a company offshore will bring at least one of the following five
benefits to a business owner: -

1) Ease of Operations - depending on the jurisdiction and the type of business
activity to be conducted under the company name to be incorporated, the operating
restrictions, auditing and accounting requirements and standards to which the
business and its employees and directors must adhere are often far less restrictive
offshore than onshore.

Exceptions to this rule are financial services based companies in many jurisdictions
for example, who have to comply with extra regulatory legislation for the protection
of the company's clientele.

The advantage of easing operations particularly for a small or start up company is a
reduction in operating costs and in the amount of time a company's directors have to
dedicate to form filling and report filing.

2) Reporting Simplification - this ties in with the first benefit; in the majority
of offshore jurisdictions favored for company incorporation the company activity
reporting requirements are often far fewer and simpler as the business activities
entered into by the company are conducted outside of the jurisdiction in which it is
incorporated.

Furthermore personal information relating to the company's directors and
shareholders need not be declared in all cases or the extent to which personal
information is required is far less intrusive.

3) Taxation Reduction/Negation - the reduction in taxation liability is one of the
main benefits associated with investing offshore, opening an offshore bank account
or incorporating a company offshore.

If you set up your company in a low or no tax jurisdiction you could potentially
save yourself substantial amounts of money legally. Often the rules are that if the
company incorporated in a particular jurisdiction never derives an income from the
local economy it can operate tax free.

It's therefore possible to use an offshore company in an overall international
business structure and ensure profits are posted in the offshore jurisdiction and so
no tax is liable! Many international corporations operate in this way and actually
negate their tax liability fully.

4) Asset Protection - by operating a company offshore, i.e., outside the
jurisdiction in which the company operates, it is sometimes possible to position
assets away from the reach of any potential litigious action and also to shield
business transactions from the eyes' of the competition.

5) Personal Privacy Protection - the level to which a director or shareholder's
personal information is required, held, visible or investigated offshore is likely
to be far less invasive and intrusive than onshore. It is also possible to appoint
nominee directors and secretaries for offshore companies in many jurisdictions thus
keeping the true company owner's identity shielded.

The information contained in this article cannot constitute advice. Each
individual's circumstances are unique and whether or not offshore company
incorporation is something that could benefit your business can only be determined
with personal advice.


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