What is Offshore Company ?

The term offshore company refers to either:

1. A company which is incorporated outside the jurisdiction of its primary operations regardless of whether that jurisdiction is an offshore financial centre. For example, a Singapore company may be ‘offshore’ for the purposes of a Malaysian citizen ; or,
2. Any company (resident or otherwise) incorporated in an offshore financial centre or offshore jurisdictions

OFFSHORE COMPANY FORMATION

By setting up the offshore company, the companies and individuals will be able to enjoy a full range of attractive tax benefits offered by the various jurisdictions which are good and effective tax planning tools.

Now, you can set up an Offshore Company here, in Malaysia with our associates. You can also set up a Shelf Offshore Company via our associates in Malaysia.

What Is An Offshore Company?

An offshore company is a company which generally excludes conduct of business in its country of incorporation. Hence, the company is free of its home government interference and it can be incorporated to enjoy low tax rates. It is also called an offshore IBC (international business company) or non-resident company. An IBC is frequently used in international trade; provision of services; as a holding or the making of investments; for ownership of real estate; for ownership of intellectual property, licensing and franchising.

Two key characteristics of an offshore company are:

1. It is incorporated under the offshore company regulations of the relevant offshore jurisdiction.
2. It does not conduct any substantial business within the offshore jurisdiction where it is incorporated.
   

Is Offshore Company For Everyone?

Maybe not everyone. But an offshore company can be your option to asset protection, privacy, tax-free trading and more. With proper and effective tax planning, business owners can get to manage and monitor their assets and enjoy their tax benefits gained.

Benefits Of Setting An Offshore Company?

An offshore company is a flexible business vehicle and as such can be integrated as part of tax planning and asset protection arrangements. Reduced or deferred tax liability and confidentiality are just two of the list of benefits which can be achieved with an offshore company.

Among many common reasons to setup offshore company are:

Offshore Company Benefit #1: Tax Saving

Business may be structured so that profits are realised in ways that minimize the overall tax liability. Offshore companies can be established in low or no tax jurisdictions.

Offshore Company Benefit #2: Simpler Business Administration

Except for regulated businesses, such as banks or other financial institutions, most offshore company jurisdictions make them relatively simple to set up and maintain companies.

Offshore Company Benefit #3: Asset Protection

In some jurisdictions, it is possible for assets to be held through an offshore company without disclosure of ultimate beneficial ownership. It is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.

Offshore Company Benefit #4: Easy and Simple Reporting

The level of information required by the registrar of companies varies from jurisdiction to jurisdiction. Generally, the offshore company information required is very minimal for most jurisdictions.

Offshore Company Benefit #5: Privacy / Anonymity

By carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation.

Offshore Company Benefit #6: Less Stringent Regulation

An offshore company is usually governed under less stringent regulations for governance, such as rules on meeting, financial disclosures, etc.

Offshore Company Benefit #7: Global Investing Opportunities

Investors find it convenient to have a tax efficient offshore company from which to make their investments on a regional or global basis

Offshore Company Common Questions #1: How Much Does It Cost To Set Up An Offshore Company?

It is reasonably affordable to set up an offshore company and different jurisdictions command different set-up fees. Generally,  fees incurred for setting up and annual maintenance fee of an offshore company include the following:

1. Administrative, Accounting Services, Annual Auditing and Tax Filing Fees – based on time spent and charged at prevailing hourly rates

Exclude Disbursements – all out of pocket expenses including telephone, facsimile and travelling expenses