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OFFSHORE JURISDICTIONS
Why Offshore Companies?
Offshore companies were once available only to the very
rich and very experienced investor and were not accessed
by the ordinary investor or businessman. Today in an
ever changing economic environment, with rapid and
global communications facilities, opportunities are
available to persons or businesses involved or wish to
be involved in international trade or investment
activities. How better to maximize your profits and
simultaneously minimize your tax liability in an
entirely legal way than by conducting your business
offshore?
Offshore companies are the preferred company structure
to achieve anonymity and privacy protection, keep
all business details confidential and combine all this
with limited liability and tax exemption.
Alliance offers the formation of offshore companies in
most reputable jurisdictions.
It is realised today, that although the costs for an
offshore incorporation may be higher than that to
register a local company, the long term benefits far
outweigh this. Offshore companies do not have to pay
sales tax nor income tax. Due to the fact that there is
no taxation there is no required accounting or auditing
from authorities. This means you save the costs of a CPA
whilst at the same time gain the highest level of
privacy protection. Your company may be dormant or it
may generate millions in profit you will still not be
required to forward information.
Advantages of Offshore Companies
 No
restrictions on nationality
No
requirements to disclose ownership
No
restrictions on foreign owned corporations
No
restrictions concerning ownership of shares
No
residence requirements for Directors/Officers
No
requirements to file annual Financial Statements
Total
Secrecy and Anonymity (Confidentiality of the Directors
and Owners)
Total
tax exemption on all and any business activity or
transaction carried on outside the jurisdiction
OFFSHORE HOLDING COMPANIES
The Holding Companies - a perfect instrument for
administration and tax reduction.
The Holding company is the preferred option for many
businesses that wish to minimise risk, reduce tax and
effectively manage sister companies. There are several
types of Holding companies:
The
Operational Trading Holding
This type of Holding is conducting actual business and
has usually grown from a regular corporation that has
needed to outsource its work to its own sister companies
due to expansion.
The disadvantage of this type of Holding company is that
as the main Holding company is still continuing to
conduct daily business it will always face the
possibility of claims or bankruptcy. Should a bankruptcy
occur all the sister companies will also be deemed
bankrupt.
The
Asset Management Holding
The Asset Management Holding purchases shares in other
companies that it feels will make a profitable return.
It will actually trade in shares and has no actual
personal connection or activity with any of the
companies from which it purchases shares.
The
Management Holding
The Mmanagement Holding is a mixture of an operational
Holding and an asset management Holding. It mainly holds
and manages the shares and assets of its own sister
companies but does not conduct business itself. The
Management Holding company is the preferred option for
the expanding business that may wish to separate
different parts of its business into different sister
companies.
The Holding can provide loans and services to the sister
companies and the sister companies can benefit from the
existing organisational structure. But a bankruptcy of
one of the sister companies will not affect the Holding.
The profit of the sister companies can be transferred as
dividends to the Holding which is registered offshore
and has no taxation.
OFFSHORE TRUST COMPANIES
The Trust - a perfect instrument for asset
protection.
The term "Trust" is widely known and used, however there
are often many misunderstandings as to what a Trust
actually is. The correct definition of a Trust is an
agreement or contract. It is not, as many believe a
special type of company. It is purely an agreement
-albeit a very special one, between three parties:
The
Settlor
The Settlor is the transferor of the assets into the
Trust. Any kind of asset can be transferred, funds,
shares, cars, boats, real estate and even non entities
such as patents or rights. Once the assets have been
transferred into the Trust this can not be revoked. Once
the Settlor has transferred all the assets into the
Trust he can legally declare that he does not then own
them. This is of special interest in cases of
bankruptcy, divorce and inheritance or legal claims.
Trusts are one of the most preferred methods employed by
medical practitioners to protect their assets in case of
malpractice claims being brought against them.
The
Trustee
The Trustee is the official manager of the Trust.
Officially the Trustee must be independent from the
Settlor and has all rights and full control over the
actual running of the Trust. Obviously few people would
wish to pass that amount of control over their assets to
a third party so generally the Trustee will always act
unofficially on instruction from the Settlor. It is
possible to draft a separate agreement between the
Settlor and Trustee ensuring the Settlor retains full
control. In order to act as Trustee over any Trust, the
Trustee must hold a special license.
The
Beneficiary
As the name suggests, the Beneficiary is the person or
persons who finally receive the assets from the Trust.
The Settlor can be a named Beneficiary. All entitlements
to beneficiaries must be set at the commencement of the
Trust and can not be revoked or changed. Once the
beneficiary has received the assets from the trust he is
then liable to declare this and pay due taxation. The
Beneficiary can receive regular payments from the trust,
for example from the interest or can wait for the expiry
of the Trust and receive all assets and interest in
full.
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