What do you want from an offshore company that a just forming a local company and opening a local bank account can't do?

[JohnLocke]

I found this question rised in another thread and it is a very good question actually.

We should mention a few reasons for why you want to setup a offshore company with banking somewhere, what is your reason for doing that or what reason can you imagine that would defend such a decision?

Hope you want to participate in this thread

 

[khinkali]

If you live in a territorial taxation jurisdiction then an offshore entity might be tax efficient. I think a lot of people would get this wrong without professional help due to misunderstanding "offshore source income", permanent establishment, CFC, substance, etc.

Also it can help to go offshore if you are looking for light touch regulation for collective investment (e.g. ICO) rules or gambling or similar. But again, I think people can get in trouble if they don't consider regulation where their investors or customers are.

 

[jackfrost]

- local tax laws that give benefits to offshores e.g. Malta with its tax refund / full imputation system needing an additional offshore
- regulations usually igaming or crypto related
- (somewhat more) privacy
- better legal shielding
- corporate taxation
- way of accounting
- some business is not legal in your country but still perfectly legal in other countries as long as you dont sell / do whatever you do in your country

 

[Praetorian]

More freedom of action without the prying eyes of your local government.
More privacy.
More efficient accounting since i know several on-shore jurisdictions that make corporate accounting a total waste of time and money.
More protection for assets.
More versatility when it comes to dealing with foreign clients, if a huge portion of your clients are europeans, then a Malta company makes sense compared to say, a company in Delaware.
More freedom to operate in certain fields, like cryptocurrency, since many on-shore jurisdictions will scrutinize your every move if you deal with crypto and that could end up causing more harm than good.
More legal simplicity in some jurisdictions.
More freedom of movement if you start considering leaving your main country later on.

 

[reesek]

IP protection too