Offshore companies (offshore companies) are economic entities such as limited liability companies (LLCs) that have been established anywhere other than the place of the "physical location" of the person using them, in other words – abroad. Usually the term refers to businesses established in financial centres with a very low level of taxes, which are usually found mainly on islands and are often likened to "tax havens".
Many individuals and businesses that use offshore companies aspire to:
- Tax reduction
- Asset protection
- Risk management
- Asset enhancement
- Privacy preservation
- Cost reduction
In general, the reasons for using offshore companies for businesses are as follows:
- Free remittance of profits
- Access to top jurisdictions
- Security of property rights
- Access to low-cost areas
- Access to tax treaties
- Banking privacy
- Availability of offshore experts
- Access to foreign insurers
- Exemption from customs and tariff duties
- Easy, quick and tax-free currency conversion
- Enhanced privacy protection – government cooperation
- Fair treatment
- Territorial taxation
- Sanctity of contracts
- Encouragement of foreign investment
- Less stringent rules
- Proven legal system
- Higher yields and returns
- Sophisticated provision of banking facilities
- Political stability
- Reduced taxation
Offshore companies are used mainly for:
- Trading – Investments
- Funding
- Services and consultancy
- Intellectual Property
- Ship management
- Tax planning
The formation of an offshore company is usually used for shaping international business and tax planning. Companies based in "tax haven" countries offer individuals and businesses little or no tax liability, which includes company incorporation centres such as Seychelles, the Marshall Islands, Panama, Dubai, etc.
Companies established in "tax haven" countries may benefit from favourable tax arrangements or / and unusual corporate systems both in the
Companies established in many countries and tax-favourable for specific international purposes.
These favourable provisions are used for various business tax planning purposes, such as:
Double tax planning in relation to dividends, interest payments and royalties.
Formation of an international fund for the maintenance and financing of operations.
Specialised businesses, for example, leasing.
Personal and family asset management.
It is worth noting that, in order to stimulate incoming investment, almost all countries offer some form of tax arrangements, though not, for the time being, Greece.
