Advantages of Offshore

Why do people form offshore companies and settle offshore trusts? For most the answer will be TAX or rather a lack of it. For others there may be different considerations such as asset protection, a neutral territory for investors from different countries, anonymity or inheritance and probate issues. Below is a brief analysis of those considerations.

Tax

The jurisdictions with which AIL deal generally impose no taxes on companies or alternatively apply a nominal tax exemption fee or benefit from a low rate of tax by virtue of Double Tax Treaties and special concessions. Most offshore jurisdictions impose no capital gains, income, inheritance or estate transfer taxes nor stamp duty or similar such charges.

Asset Protection

Many clients establish offshore trusts so as to take their assets beyond potential creditors or frivolous litigants. (See Trusts). By virtue of transferring legal ownership of those assets to the Trustees the settlor of the trust divests himself of ownership thus taking the assets outside his estate.

Neutral Territory

Where investors are drawn from differing countries it is often desirable to establish a joint venture vehicle in a third party country thereby giving neither one or the other investor the advantage or disadvantage of establishing a company in their home territory. This is quite often done by international trading companies and joint property investors.

Anonymity

Through the use of third party directors and nominee shareholders it is possible to structure companies in such a way that any connection with the beneficial owner is avoided.

Inheritance and Probate Considerations

Through the use of offshore trusts and companies it is possible to ensure that assets are held outside a person's estate for inheritance tax/death duties. These assets would no longer be subject to probate and could be disposed of/used immediately after death.

Whatever your reasons for going offshore AIL is able to provide you with everything you need to incorporate an offshore company or settle an offshore trust.