Offshore Tax Haven
An offshore tax haven is considered to be a jurisdiction where one of the following can be registered; International Business Company also referred to as an offshore company, exempt trust, offshore partnership, offshore limited liability company, offshore foundation among others. Offshore banking and the registration of ships and vessels are also services provided by offshore havens. These services are normally provided for non residents of the tax havens. Offshore Tax havens are also described as countries which have low tax schemes in place to attract foreign investments and businesses.
Offshore registration on many offshore havens requires that a registered agent be employed in the tax haven. This person is someone who has been licensed to take to provide offshore services in the offshore haven. This makes the process of establishing offshore companies, trusts and foundations much easier. Most offshore havens require just one shareholder and on director for company formation. Offshore companies in offshore tax havens can do business anywhere in the world but in the tax haven but there are few offshore tax havens with exceptions. In Panama for example offshore companies can do business in the tax haven as well. Offshore companies can be incorporated in the offshore havens of Dominica, Anguilla, St Kitts, Nevis, Seychelles, Singapore, Hong Kong, Gibraltar and many others.
Offshore trusts and offshore foundations are just as easy to set up. Offshore havens which have legislations in place for the formation of offshore trusts and offshore foundations allow the formation of both private and charitable trusts and foundations. Both offshore entities have to name beneficiaries and have to set up bodies which will act as directors of offshore trusts and foundations. Offshore trusts can be set up in the tax havens of Dominica, Nevis, British Virgin Islands, Anguilla, St Kitts and others. Offshore foundations can be set up in St Kitts, Nevis, Panama amongst other offshore havens. The Nevis offshore foundation can be considered to the most unique of offshore foundation. The Nevis foundation is also known as the Nevis Multiform foundation which as the name suggests can take many forms namely trusts, partnership, corporation, an ordinary foundation or a limited liability company.
Offshore banking has become very popular over the years and is a service provided by many offshore havens. Offshore jurisdictions go to lengths to protect this sector in the tax havens. Some offshore havens limit the number of banks which can provide offshore banking services and many have put many laundering acts in place to protect the reputations of offshore banks in the tax havens. Offshore ban king is provided for corporations and individuals and the banking services are top quality. Services which can be expected of offshore banks are accounts in multiple currencies, internet banking, chequing accounts, debit cards, credit cards, bank drafts, ATM cards, banking via telephone and other services.
The rewards for going offshore are many. To begin with offshore companies pay no local taxes on income inmost offshore tax haven which is a very valuable bonus. Offshore companies do not have local taxes levied on them in tax havens. Offshore trusts and foundations also benefit from no local taxation on globally earned incomes. Offshore havens have no capital gains tax, withholding taxes or inheritance taxes for offshore companies, offshore trusts and foundation. Offshore companies, trusts and foundations must however pay a fee for registration and a yearly fee which will keep them in good standing order. Offshore businesses, bank accounts and offshore entities also benefit from privacy laws which prevent persons from making information about the above mentioned public and asset protection laws which put assets away from the reach of third parties and foreign court rulings.
Offshore havens have come under much pressure from countries which are not tax havens for providing tax breaks for individuals and corporation but their number continue to rise as the services and benefits which they provide are sought after. The tax havens continue to help individual and corporations reduce tax liabilities. The offshore companies incorporated can do business anywhere in the world and have made a reputation for themselves as great trading companies.