An offshore corporation is a business that is established within one of dozens of offshore jurisdictions. In the same way that offshore banking has been used to save individuals money on personal taxation, an offshore corporation can save a business money on corporate taxes, VAT, and various other taxes too. It is important that you choose the right jurisdiction, though, in order to ensure stability for your company and all of the benefits that you are looking for in your company incorporation.
Every jurisdiction has associated costs. The government of the country takes a fee for the establishment of the company and there are ongoing, annual fees too. However, these fees can start from as little £350 for the first year which is easily offset against the tax savings that are typically made. Look for those jurisdictions with attractive rates, especially if you operate a smaller company, to ensure that you gain the benefits.
If anonymity is especially important then be sure that you choose a jurisdiction that provides the level of anonymity you require. An offshore corporation in certain countries may not require the public filing of records, and in other countries it is possible to use corporate or nominee services which add a further layer of privacy to proceedings. Some jurisdictions do require the filing of returns and accounts as well as the publication of director and shareholder details though.
Consider the area where you trade. An International Business Company is not usually afforded tax privileges in the jurisdiction where they are incorporated. For example, if you regularly conduct trade in Switzerland then you should avoid offshore corporation within the Swiss border otherwise you will not gain the same level of benefits that you would if you traded elsewhere in the world.
Also consider the stability of the country and the government where you will incorporate. If the government is likely to be toppled or overthrown, then laws can change quickly, and you may find your information published and in the public eye. Financial stability is vital too, and using a jurisdiction which has a strong history of offshore benefits is advantageous.
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