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Reasons and Benefits
The motivations for individuals and corporations to utilize offshore planning and offshore companies include the desire to:
- Reduce tax
- Protect assets
- Manage risk
- Maintain privacy
- Avoid bureaucracy
- Reduce costs
- Enhance assets.
Going Offshore: Reasons
More broadly, the reasons for going offshore and utilizing offshore companies for tax planning and offshore business include:
- Free remittance of profits and capital
- Access to top-rated debt history jurisdictions
- Access to tax treaties
- Security of property rights
- Accessing low cost areas
- Banking privacy
- Availability of offshore experts
- Access to foreign insurance and reinsurance
- Enhanced privacy
- Customs and duty exemptions
- Exchange convertibility
- Government cooperation
- Fair treatment
- Territorial taxation on foreign income
- Fewer restrictions
- Sanctity of contracts
- Foreign investment inducements
- Tested legal systems
- Higher yields and returns
- The availability of sophisticated banking facilities
- Reduced taxation
- The search for political stability
Offshore Companies Applications
The principal uses of offshore companies are:
- Trading
- Investment
- Holding
- Financing
- Professional services or consultancy
- Patent, royalty and copyright holding
- Ship management and yacht owning
- Personal and corporate tax planning
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