The offshore company is not just about setting up a company in a foreign country to that of its tax residence. The choice of country is important and depends on the objectives and the expected benefits by setting up your company in the country in question.
The number 1 reason: tax optimization
In the vast majority of cases, the creation of an offshore company has the main objective of tax optimization. This is a form of tax evasion, except that unlike tax evasion, optimization is legal. In fact, it consists of taking advantage of loopholes in the tax system of the country of residence to reduce the amount of the tax burden. Thus, the goal is to install the company in a country where the regulation is much more flexible and where the taxation is very weak, or even null. The term tax haven is often used to describe this type of destination. Benefiting from lower taxes allows the company to retain a larger share of its profits than it can reinvest or share among its shareholders.
Anonymity, secrecy, and discretion
If tax optimization is often sought by the company opening an offshore company, other reasons may be added. Very often, managers and shareholders may also be looking for greater anonymity. It is especially possible to use name ready to formally represent the offshore company. This anonymity is often sought for tax reasons. We must also mention the secrecy and especially banking secrecy. Some offshore destinations allow opening an account by ensuring total banking secrecy. Note also the discretion that allows certain transactions that would be impossible to achieve from the country of tax residence. This discretion also concerns the absence of accounting. Thus, in most offshore destinations, it is not mandatory to make public its accounts. A solution allowing managers to better preserve the confidentiality of their income. In any case, it is essential to approach a firm specializing in the creation of a company outside your tax residence. These taxation experts will save you a lot of time, and most importantly, they will optimize your success rate (creation of a bank account in particular).