Recently in Offshore Company Category

PENSION NOT A TRUST The Master Pension Trust is an "onshore" Hong Kong registered "occupational Retirement Scheme" (ORSO) administered as a Trust under the Mandatory Provident Fund schemes Authority since 27th March 2006.

COSTS: With trusts becoming more expensive, the Master Pension Trust gives a unique tax and pension planning opportunity at fair cost.

TAX EFFICIENCY AND FLEXIBILITY Due to the HK ORSO tax regime and double taxation agreements, no matter what your residence or nationality the Master Pension Trust can be one for the most cost effective and efficient ways of mitigating your tax planning issues.

QROPS The Master Pension Trust will accept UK domiciled pension transfers and thus take full advantage of the HMRC Qualifying Recognised Overseas Pension Scheme rules.

• The Master Pension Trust can hold cash, property, land, mutual funds, stocks, stock options, bullion, private shares, hedge funds and bonds.
• It can mitigate "MOST" taxes depending on your domicile, on both a current basis and death basis.
• It can accept most transferred Pensions with no limits. It protects you and your assets against claims from Creditors.
• No Income tax, Capital Gains tax, on the underlying funds
• No compulsion to purchase an annuity
• Income for life on 70% of pension funds transfered from a UK Pension.
• Lump sum payment available on retirement age.
• No Widows benefit on pension scheme
• Freedom of investment and currency choice
• No tax on the scheme or its member
• Reporting requirements costs are significantly less in Hong Kong than elsewhere and that helps to enhance absolute returns on investments.
• Client confidentiality.
• Choice for investment assets.
• No maximum investment restrictions.
• Can mitigate UK Stamp Duty Land Tax, Capital Gain or Income tax on the transfer of property.
• No UK IHT, death or estate tax.
• No profits tax on property traded within the Master Pension Trust.

HONG KONG Master Pension Trust main features
Master Pension Trust can take transfers and contributions from anywhere. That is because of the Occupational Retirement Schemes Ordinance definition of a scheme. In other words, we are not confined to Hong Kong. A Master Pension Trust can receive employer contributions from anywhere for any type of pension fund design - defined contribution, lump sum, final salary, defined benefit, pension or annuity. It can purchase any form of insurance or financial instrument to answer benefit payments.

Any United Kingdom registered pension fund of any description, whether in drawdown or not, may be transferred to Master Pension Trust.

All forms of restriction on transfer of pension funds into and out of member states are made illegal under European Union Law. The United Kingdom regulations on transfers to QROPS follow EU law. HMRC cannot change regulations against EU law.

A transfer payment may be made either to the scheme administrator including persons responsible for administration of the QROPS, not just the trustees of Master Pension Trust; or, where the receiving scheme for the member is to be an insured scheme, the the scheme insurers, then to Master Pension Trust (the usual route).

A Transfer Value is calculated according to The Pensions Regulators guideline and must be explained by the person presenting it to the member.

Following the transfer, Master Pension Trust will be required to provide benefits on a like for like basis as preceding the transfer. So the transfer of a scheme pension in payment, for example, should be continued in that form, and the conditions as set out in HMRC's RPSM14106030 should be followed. If any of those conditions are not met the member of the receiving scheme will be liable to an unauthorised payments charge (see HMRC's RPSM13102020).That will be the case, in particular, if a lump sum is paid, the scheme pension is increased or the income withdrawal is speeded up. Transferred pension fund money received by a Master Pension Trust cannot be topped up.

Additional voluntary contributions of any description, including real estate, can be received by Master Pension Trust only if the member is in employment and sponsored by his employer who must sign the Master Pension Trust trust deed.

Master Pension Trust members and their dependants can elect to defer benefit payments past first payment due date or on the member's death. There is no reversion of the fund to the member's deceased estate except by default where the member has no dependants or relatives.

Together with Modern Portfolio Theory, at, for example, age 60 with a life expectancy of 25 years, the portfolio should be weighted 70% to liquidity and 30% to less liquid capital growth. The 70% tax law rule is clear - life means life and not life style. The Master Pension Trust is designed to allow 100% drawdown of capital and income during a member's lifetime with the option of leaving a capital residue for the member's spouse and dependants.

Nicosia, Cyprus, 01/04/2012 - Offshore-Gateway.eu is now live online, following 12 months of development. The web platform is an initial point-of-contact for professional services via Cyprus, including company formations, tax planning, wealth management and international banking.

Offshore-Gateway.eu platform is now live, following 12 months of work by a team of young entrepreneurs, made up of international business consultants and information technology experts.

The new Offshore-Gateway.eu portal is an independent and impartial point-of-contact to leading supplier-firms in Cyprus that provide investment strategies to the EU and EMEA region, namely with regards to setting up a company formation, then subsequent professional services, including company administration and maintenance services, global tax planning solutions, accounting and auditing, wealth management, as well as international offshore banking.

The platform provides one initial point-of-contact with multiple service options. Visitors send through a quotation request, and Offshore Gateway pairs them up with the most suitable supplier who has been pre-qualified.
"Offshore-Gateway.eu is a unique service that does not exist anywhere else in the world. Although it is still early days, it should go a long way to promoting efficient international business activities and supporting investments to the EMEA region via Cyprus," states Managing Director, Offshore Gateway Michael Michaels. "Indeed, Cyprus is fast becoming one of the most popular jurisdictions for financial and professional services in the world; and for very good reason. Cyprus is in the EU and eurozone, has excellent infrastructure for professional services, a business friendly government, and a great geographical location - at the centre of the EMEA. Above all, Cyprus has the lowest corporate tax rate in the EU at 10%, and is the lowest non-offshore tax jurisdiction in the world, making it financially (tax-saving) attractive."

According to Offshore Gateway, although the EU, eurozone and global economy is facing some serious challenges at the moment, it was still the right time to launch the service. "Finalising the platform is only really half the work. It will take some time to build very good web presence, brand awareness and generate strong search engine optimisation - normally takes months to properly crawl websites. Besides, many companies will be actively looking to consolidate their own finances over the next year, whilst others might even be in a very good position to take advantage of the situation and invest intelligently," adds Michaels.

Aside from referring visitors to the most suitable supplier-firms in Cyprus for professional services, Offshore-Gateway.eu provides added-value business content and tools. This includes sector information, news, reviews from industry professionals, interviews, publications and documents from credible sources, as well as macro economic statistics in Cyprus and the EU.

Usually banking goes hand in hand with offshore company formation. For legitimate tax minimisation purposes, it is customary to have a corporate bank account residing in a country different from the country of incorporation. This is commonly practiced.

For instance, a Singapore company is ideal for international business because company funds remitted outside of Singapore remain free from corporate tax. For this reason, many Singaporean companies possess a corporate Hong Kong bank account.

Offshore banking in Hong Kong is the preferred banking jurisdiction for many business people and corporations. Hong Kong has an excellent global reputation as a financial and banking centre. A Hong Kong corporate bank account provides protection, thanks to its political and economic stability. In addition, competitive banking rates, and a legal structure in support of progressive banking laws, offer more incentive for Hong Kong as a banking destination.

The cost of setting up a corporate bank account varies with each financial institution. It is recommended to use a well-regarded, trusted, safe, and well-known international banking institution of high reputation, such as HSBC, Citibank, and Standard Chartered.

Offshore banking is right for entrepreneurs and companies regularly conducting international business transactions. Global consultants are a prime example for the necessity of offshore banking. Offshore company formation allows consultants to conduct business and receive payment through their company, and the company is 'offshore' in comparison to their international demands.

There are jurisdictions that are more involved with international business than others, and these locations accommodate the ease of doing business internationally. Singapore, Hong Kong, Dubai, Ireland, New Zealand - these are just a few capable of creating conditions for ease of international business finances. Corporations, companies and entrepreneurs seek these regions for the level of expertise and infrastructure available to them for transacting and growing business globally.

OECD regulations trends in recent years have moved toward transparency in banking, with a push for countries to share information about their international bank account holders. But this does not mean offshore banking has a negative image. As long as the laws of each jurisdiction are respected, it is completely legal and respected to set up an offshore company with international corporate banking facilities.

For solutions to setting up your own global enterprise, contact Healy Consultants for a free consultation, email@healyconsultants.com or telephone the Singapore office (+65) 6735 0120.

United States citizens can utilize offshore trusts and banks, because each citizen must report foreign income. Taxable foreign income includes interest, dividends, and capital gains earned or accrued offshore and domestically. The U.S. government allows its citizens to transfer funds to offshore accounts, but it requires full disclosure of the type of asset and how much a citizen is transferring offshore. The U.S. also employs special task forces and government agencies that are committed to preventing money laundering and tax evasion. The government makes it clear that U.S. citizens must comply with all taxation and reporting requirements.

Common Myth

There are many companies that claim to be able to offer offshore solutions to U.S. citizens, but this claim is not true. The U.S. taxes foreign income. Therefore, it is unlikely that the service a company advertises applies to a U.S. citizen. Even worse, the company contributes to the U.S. citizen breaking their home country's law.

Benefits

Offshore trusts offer an individual a fair degree of personal confidentiality, financial privacy, and asset protection from lawsuits and creditor claims. Some claims may be due to a spouse filing a divorce suit or a business client attaching a lien against real property.

When properly structured, offshore asset protection trusts offer degrees of financial protection from current and potential claims. There are additional benefits to U.S. citizens forming an offshore asset protection trust. The following represent some common benefits:

Personal Protection: Customers can use any form of asset protection trust, whether employed domestically or abroad, to protect their assets from personal and/or professional litigation. They may also use a trust to protect assets from creditor liens.

Home-Country Advantage: A U.S. citizen can use an offshore trust to protect their assets whether they form the trust in their home country or offshore. The added benefit is that the trust can remain with the individual in the U.S. In other words, the assets of an offshore trust usually remain under the indirect control of the settler.

Fixed Term: Offshore trusts are usually "irrevocable" for a set term. During that period, the settler can not be a direct beneficiary of the trust.

These are just three of the most common benefits to forming an offshore trust.

Tips to Remember

Many U.S. experts on this topic advocate structuring foreign trusts, so the trust can be taxed domestically as a grantor trust.

When a legal expert structures an offshore trust correctly, creditors, or anyone suing the settler, will be powerless to attach a claim to the assets of the trust.

If a legal expert has structured the offshore asset protection trust to end by a certain period the assets can be returned to the control and direct ownership of the settler. This can only happen provided there is no current or ongoing threat.

When it comes to employing offshore solutions, such as an offshore trust, there are many opportunities for U.S. citizens to benefit from asset protection planning.

Harbor Financial Services (HFS)

Harbor Financial Services is a professional company that provides offshore financial advice and investment services to its clients. HFS recommends offshore products and services to suit any personal and/or business need. The company has helped clients find solutions to meet their long-term financial needs. HFS has the experience and the expertise to create the best offshore package for you. Visit hfsoffshore.com for more information about the company's products and services.

Offshore Banking a Defense Tool | Offshore Banking

About the Author

The offshore world is the perfect environment for protecting hard-earned assets and obtaining financial privacy. HFS has helped people from around the world safeguard their money and regain financial privacy in their personal and business affairs. Our mission is to make "going offshore" simple, convenient, understandable and affordable.

Disclaimer: Many countries have laws regarding offshore entities and accounts. For example, citizens that form offshore entities, (for example an offshore corporation, offshore trust, offshore partnership, offshore limited liability company, etc.) own stock in offshore entities or hold positions within offshore entities may need to file a tax return. Citizens that form an offshore trust, move assets into an offshore trust or are the beneficiary of an offshore trust may need to file a tax return. Citizens that sign on offshore bank accounts or offshore investment accounts may need to disclose this fact to their government and pay taxes on any interest or capital gains. We strongly recommend consulting with a local, licensed professional to obtain tax and legal advice in order to understand the law and to fully comply with all applicable laws and reporting requirements regarding offshore companies, offshore trusts, offshore bank accounts and offshore investments.

Why Should You Setup a Seychelles Company?

The common financial issue that is faced by many corporations the world over is a high rate of taxes that they have to pay annually. Most of the business owners think that there are no legal alternatives to try and save some money on taxation, but this is not the case. You, as a business owner, have the option of establishing a holding company called Seychelles company in the island nation of Seychelles and getting to enjoy the benefits of a beneficial tax structure that is prevalent there. You may have subsidiary operations anywhere in the world, but you will be liable for taxation only in Seychelles where your holding company is located.

Along with the Seychelles company that you have incorporated, you will get to enjoy an incomparable protection of your privacy as the laws here do not require you to divulge sensitive company related information at the time of incorporation. Only a few basic details like the name, address of the company etc. are in the public domain. You also do not have to file your annual return or any other documents that are mandatory in many other developed countries in Europe and North America. The benefits of offshore company incorporation are many whichever way you look at it (financial, regulatory etc.).

The regulatory requirements in most of the developed nations with respect to private corporations are stringent and may require the business owner to file a large number of documents. There are also a number of regulators in these countries who may require variations of the same document. All these may cause a lot of hassles for the personnel handling the regulatory financial reporting procedure in your company. You can avoid all these issues if you set up a Seychelles company as you need not submit any of the usual regulatory documents in this country once you have finished the formalities of offshore company incorporation.

In addition to the Seychelles company, you can also open an offshore bank account to protect your funds from the rigors of taxation and unfavorable legislation. International investments are often dependant on large volume transactions where the margins may be lesser than expected. You will expect to make money on the volumes. This strategy gets affected if there is a high tax rate in the county where you reside. An offshore IBC can help you get out of the tangle by letting you channel all your international investments from the offshore bank accounts that you have set up. You also do not need to furnish many personal details at the time of setting up of an offshore account.

The offshore bank accounts have many other advantages including that of multi currency operations. This allows you the flexibility of remitting the money in different currencies without losing money in exchange rates and other requirements as is the case with onshore accounts. With all the advantages that can be tapped by setting up a Seychelles company and an offshore bank account, you could be well on your way to making a steady stream of profits in the years to come.

Silvia is the author of this article on Offshore bank account. Find more information about Seychelles Company here.

As the flow of wealth from many nations of tax advantaged, "offshore," jurisdictions continues the need for and profitability of offshore banking services increases virtually day by day. The problem in this picture is that as the demand for offshore banking services has increased the ease of setting an offshore bank has become more difficult throughout most of the "offshore" world. A jurisdiction that has not suffered many of the problems that inhibit other offshore jurisdictions is New Zealand. A New Zealand Offshore Financial Company provides an excellent opportunity to provide offshore banking services and avoid a number of problems that plague other offshore banking jurisdictions.

The Problem Elsewhere

For those interested in setting up an offshore banking presence in most, but not all, jurisdictions the bad news is primarily related to the United States Patriot Act enacted after the destruction of the World Trade Center twin towers. An offshore bank is typically not allowed to do business with residents of the jurisdiction in which it is licensed but its license allows it to do business throughout the world. To do so the bank will need correspondent banks in other countries. Banks throughout the world that do business with banks in the USA typically need to satisfy certain criteria based on the Patriot Act.

Because many banks are not willing to jeopardize their current banking relationships they will often not take on correspondent accounts with new offshore banks. Sometimes there are, in fact, problems with the jurisdiction or the bank involved and sometimes the bank simply does not want to take a risk of being branded by US authorities.

Because of this situation some jurisdictions no longer offer offshore banking licenses. Some still do but the problem of getting correspondent banks remains so that it has become very difficult to actually do any banking even if an individual or corporation has obtained a license and set up an offshore banking business.

The Opportunity in New Zealand

A New Zealand Offshore Financial Company (NZOFC), also called a New Zealand Offshore Financial Institution (NZOFI) can be set up to provide a whole range of financial services without being called or being a bank. Because there are no capital requirements for setting up a NZOFC such a venture can be entered into at low cost.

Correspondent Accounts, Shell Banks, and Problems Elsewhere

A correspondent account is an account established by a domestic banking institution. It receives deposits from and makes payments on behalf of a foreign financial institution. A correspondent account allows foreign banks to conduct business and provide services to their clients without the expense of a physical presence in that country. Typically the larger bank provides deposit and lending services allowing the smaller, usually offshore, bank to experience a lower cost of operation.

Patriotic Act restrictions prohibit banks from doing business with offshore banks that have no affiliate in the USA. This fact and a number of other restrictions make setting up and running an offshore bank very difficult in this day and age.

A NZOFC, especially with a New Zealand director, will typically not have problems setting up a working relationship with a registered bank in New Zealand.

The NZOFC Alternative

Because of the difficulty in obtaining a banking license and the difficulty, if a license is obtained, of finding a correspondent bank willing to deal with the paperwork many have found a better solution, the NZOFC

A NZOFC or New Zealand Offshore Financial Corporation is not a bank. A NZOFC will not do business with residents of New Zealand which is typical of offshore companies. However, such a company can do business with persons and corporations from throughout the world.

Setting up a relationship with a New Zealand bank will allow the NZOFC to operate internationally.

A NZOFC has no capital requirements. It can take deposits, lend money, offer wire transfer services, and issue credit and debit cards. A NZOFC can provide payment processing services, manage funds, market investments, and deal in a variety of other financial instruments and guarantees.

New Zealand

New Zealand is a good and safe place to do business and to do business from. The country is developed, safe, democratic, and pro business.

New Zealand is an island nation (two islands) east of Australia in the Southern Hemisphere. New Zealand is part of the British Commonwealth. This business friendly nation has always had a democratic government. It is politically stable and functions strictly under the rule of law. This is not a place where the laws change overnight to the detriment of investors.

New Zealand law provides for banking type services to be offered by a number of business entities including finance companies, building societies, credit unions as well as capitalized and registered banks. A finance company is unique in that it is not subject to capital requirements and is not supervised by the governing authority for banks, the Reserve Bank of New Zealand. Nevertheless a finance company can offer banking services throughout the world, restricted only in that in cannot offer services to residents of New Zealand.

New Zealand has a well respected banking system with both Registered Banks and offshore institutions. New Zealand is not on anyone's blacklist for suspected money laundering, etc. Organizations such as the Organization for Economic Cooperation and Development, OECD, do not list New Zealand as a tax haven. In fact New Zealand is a member of OECD as well as the World Trade Organization.

English is the primary language of New Zealand which was a crown colony and is a member of the British Commonwealth of Nations. The majority of law pertaining to financial institutions is based upon English banking law. New Zealand is not a European Union member and not obliged to follow the EU Savings Tax Directive.

New Zealand is a modern country with first world infrastructure including roads, air transport, telephone, internet, and health services. With broad band internet New Zealand offers no internet related impediments to doing banking business by internet throughout the world. The economy is strong and stable and its professional community functions of a level of competence consistent with the best in the world. Any issues a NZOFC may come up against will be handled professionally and competently with the highest prospects of favorable resolution.

A NZOFC

Besides operating under English banking law New Zealand encourages local investment by offshore entities to provide world wide banking services from this island nation. In order to facilitate the set up of financial companies in New Zealand the country has streamlines is rules and regulations to make the application process and running the actual business "use friendly." The lack of unduly harsh and cumbersome regulations makes setting up a NZOFC efficient and lends toward profitability of an ongoing operation. New Zealand is a good place to do business.

It is possible to set up a NZOFC and offer identical services to those which a bank would offer. However, the cost of operation of a NZOFC will be substantially less than that of a regular bank in New Zealand starting with the fact that the operation will be subject to no capital requirements. A NZOFC can offer online banking services to clients all over the world. In keeping with its policy of attracting business to New Zealand's shores such a company will have low initial costs and low operating costs compared to a registered bank.

An addition capability of a NZOFC is that it can act as a hedge fund with the attendant possibility of substantial profit. It is also possible with professionally designed financial/banking software to run a NZOFC with minimal personnel thus keeping costs to a minimum too. There are very few limitations to who can operate a NZOFC. NZOFC services are essentially bank services but the company cannot call itself a bank or use the word "bank" in it name. It is possible to obtain private label debit and credit card support also.

A NZOFC will have a director and at least one shareholder. These individuals or corporations can be of any nationality.

Although the paperwork is not extensive and is in English it is best to obtain competent counsel in setting up a NZOFC. A competent advisor will form and register the NZOFC and can maintain the legal aspects of the company. In setting up such an entity it is important to understand those with the knowledge to set things up and that they understand you. In setting up a NZOFC the principals need to have a clear idea of what services they wish to offer and make sure that those services are included in the beginning an ongoing business plan. Knowing tax consequences of the business, for example, will be something that you will want to know up front.

Clear Rules and Regulations under the Rule of Law

As a former British Crown colony and member of the British Commonwealth of Nations New Zealand is a country steeped in legal tradition and law. New Zealand laws pertaining to a NZOFC are based on English banking law, are clear, and reasonably straightforward. As we have noted a NZOFC is not a bank and is not subject to supervision or regulation by the central banking authorities in New Zealand. However, various facets of what a NZOFC does are covered in a number of laws in New Zealand. What this means is that the investor who sets up a New Zealand Offshore Financial Company can be assured that there will be surprise rulings or changes in regulations.

Law pertaining to NZOFC's are spelled out in a number of statutes going back as far as 1908 with the Bills of Exchange Act, and progressing over the years with the 1952Property Law Act, the Cheques Act of 1960, the 1969 Unclaimed Money Act, the 1971 Stamp and Cheque Duties Act, the Securities Act of 1978, the Fair Trading Act of 1986, the 1989 Reserve Bank of New Zealand Act, the Proceeds of Crime Act of 1991, the Companies Act and Consumer Guarantees Act of 1993, the Financial Transactions Reporting Act and Investment Advisers (Disclosure) Act of 1996, the 1999 Personal Property Securities Act, the Electronic Transactions Act of 2002, and the 2003 Credit Contracts and Consumer Financial Act.

This is not a list that the investor needs to memorize. Certainly none of these acts was written specifically for NZOFC's. This list is simply meant to demonstrate that the NZOFC is well founded in various statues of New Zealand law. The rules and regulations NZOFC are embedded in the fabric of New Zealand law making it a safe as well as potentially lucrative offshore business setup.

Running a New Zealand Offshore Financial Company

The principal or principals setting up a NZOFC will want to have a degree of knowledge and expertise in various financial matters relating to the services the company will offer. However, the principles need not expect to be expert in every aspect of setting up such an organization from day one. That is what competent counsel and technical experts are for. With the right people an individual or corporation setting up a NZOFC can expect expert assistance with general organization of the company, setting up a bank account in New Zealand or elsewhere, setting up the ability to provide wire services, and all aspects of the application process. With competent assistance the company can efficiently obtain the appropriate documentation and licensing necessary to operate as a bank in all but name.

Much of the work done by a NZOFC will be facilitated by a relationship or relationships with registered banks in New Zealand or elsewhere. These relationships are typically in place already through the advisor and counsel who will help set up the organization. The use of at least one New Zealand resident as a company director will often ease the way in dealing efficiently and quickly with set up and management issues as relate to banking relationships.

If you are interested in registering a company in a foreign location, gathering as much information as possible will help ensure smoother planning and execution of business plans. Engaging the services of a specialist corporate services firm will assist with the process but following are some frequently asked questions by entrepreneurs undertaking offshore company formation.

Why would anyone register an offshore company?
The main reasons are tax avoidance, asset protection and confidentiality. Note that there is a difference between the term "tax avoidance", which is legally minimizing tax obligations, and the term "tax evasion", which is illegal.

When is a location known as a tax haven?
The word 'tax haven' is not a legal term. It generally refers to a country that allows foreign businesses to register their company with tax-exemption or very low tax obligations. The process for registering a company, the time taken and costs are often significantly easier compared to their own jurisdiction. However, it should also be noted that the ‘tax haven' term is being used less, as more jurisdictions implement international standards of the OECD.

Which country offers the best benefits for offshore company registration?
There is no single answer to this question. It depends on various factors, such as the country of residence of the registrant, the type of business and the reasons why he wants to register an offshore company. Language could also play a role. However, jurisdictions such as Dubai, Singapore, and Hong Kong appeal to many entrepreneurs setting up an offshore company due to competitive tax systems, infrastructure and reputation as business hubs.

Why would a government allow offshore companies to be registered inside its borders?
The reason is centered on inflow of foreign money. Company registration and other forms of offshore investment provide a substantial foreign income for these governments. The capital that gets invested by these companies in local banks and investments houses creates significant inflow of foreign investment into these economies. This foreign investment contributes to aspects such as creating jobs and development of infrastructure in the country concerned.

Are offshore companies used by criminals and terrorists?
Although much may be written about illegal activities of individuals, or companies, involved in offshore investing, this is not necessarily the truth. Both onshore and offshore companies can of course be used for illegal activities, but the fact is that the majority business conducted by offshore companies is legitimate. Governments implement due diligence requirements and offshore company registration procedures have systems in place to detect illegal activities such as money laundering.

Is it illegal to own an offshore company?
It is certainly not illegal to own a company in another country. There is in fact no difference between owning shares in a local company and owning shares in one in an offshore location. Some governments tax transfers from local companies to certain offshore locations, so you should discuss this with your tax adviser before choosing an offshore location.

Are there different types of offshore companies?
These companies are known by various names. In the Seychelles, for example, they are known as International Business Companies. In other locations they are known as non-resident companies, business companies or special license companies. They all have one thing in common though: They are legal entities in their own right, allowed to have assets and receive income.

About the Author:
Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with offshore company formation all over the world, including Singapore and Hong Kong. More information on company incorporation can be found by visiting www.healyconsultants.com

Article Source: www.articlealley.com/article_1679535_15.html

There are many benefits of company incorporation in Dubai for businesses that wish to expand to other borders. Business is worth eighty billion dollars and this represents a one hundred percent increase since the year two thousand and five. Such is the growth that this area has achieved in a relatively short space of time. Most of the growth is as a result of the oil and gas industry.

Today, despite the fact that about twenty four thousand barrels of oil are produced per day in Dubai, the oil only contributes about six percent towards the total economy. Tourism has replaced this in a big way. This area is ranked number thirty-one on the Corruption Perceptions Index and the UN Human Development Index. This highlights the quality of and the reputation of the country in terms of social, jurisdiction and economic development.

Engineering too is taking off in no small way here. The most expensive hotel in the world is built here. It was at one time the tallest that was built on reclaimed land. The service industry is promoted in a big way and to that end supportive corporate structures like free zones in dubai and incentives have been created. Energy is low cost and they have top of the range communications infrastructure. Dubai welcomes entrepreneurs in no small way and this is made obvious by the quality of services that offered to entrepreneurs with a view to doing business in Dubai .

This country is part of a collection of Emirates in the Middle East. Despite being unified in many ways, they still have their own tax laws, which differ from Emirate to Emirate. The law states that tax is charged on every person who is chargeable. Chargeable persons are corporations or individuals that are permanently setup uae .

Corporate tax, withholding tax, value added tax, capital gains tax and personal income tax are not imposed for doing business in uae . Petrochemical companies, oil and gas companies are however taxed. Even though there are no corporate or personal taxes charged, there are other smaller surcharges that apply.

One will need a trade license to import goods into Dubai. Furthermore, there is a four percent duty payable. Construction materials, food, medicine and products for free zones are excluded. If the products are luxury then there is a ten percent tax duty due. Cigarettes and alcohol carry taxes of one hundred percent and fifty percent respectively.

Any company that setup dubai will have access to double taxation treaties with almost fifty different countries. Some of these are South Korea, India, Germany, France and China. Tourism has boomed beyond imagination as a result of massive cash injection into the industry. The glamorous lifestyle is used to promote the tourism industry. Man made islands that have been created there have played a big part in help to boost tourism in the country.

Infrastructure is unequalled here and that is what makes the offshore set up in dubai so very obvious. Entrepreneurs will have options available to them to conduct business very effectively in free zones in uae.There are companies that specialize in providing Business services Dubai for incorporate into the area.

About the Author:

Morison Menon Chartered Accountants provides professional advisory services in the areas of Accounting & Audit,business consulting,hr consulting,setup dubai,setup uae,free zones in uae,free zones in dubai,doing business in uae,doing business in Dubai,company incorporation in Dubai

For more information visit : www.morisonmenon.com

About Us: Morison Menon Chartered Accountants provides professional advisory services in the areas of Accounting & Audit,business consulting,hr consulting,setup dubai,setup uae,free zones in uae,free zones in dubai,doing business in uae,doing business in Dubai,company incorporation in Dubai

For more information visit : www.morisonmenon.com

Contact Info: 204 Tower- A, Gulf Towers, Oud Metha, P. O. Box 55535, Dubai, UAE

Just when you thought there was nothing more the U.S. government could do to motivate you to ship your financial life offshore, they came up with another one. And if you have a sizeable net worth, it's a big one; you could save your family $2.2 million in taxes by acting on the opportunity during the next 21 months. A husband-and-wife effort could save twice as much.

Included in the 2010 Tax Act passed by Congress late last year are gift and estate tax rules that apply only in 2011 and 2012. Compared to the rules they replaced, and compared to the rules that will take effect in 2013, they are especially permissive. The tax savings come from exploiting those interim rules before they expire.

For this year and next, you are granted a $5 million exemption from gift tax. If your bank account can handle it, you could write a check today for $5 million to someone in the next generation and incur no gift tax.

But it's a use-it-or-lose-it opportunity. Starting in 2013, the exemption from gift and estate tax drops to $1 million, and the top tax rate on gifts and estates rises to 55%. (That's substantially a reversion to the rules in effect in 2002.) So if you do nothing, you lose a free opportunity to reduce your taxable estate by a net amount of $4 million - which, at a 55% tax rate, means your family loses an opportunity to avoid $2.2 million in estate tax.

Impediments

Estate tax has always been an avoidable levy. Regardless of the level of wealth, for those who planned well and planned early, the tax eventually incurred was trivial. The 2010 Tax Act doesn't change that fact, it just makes it easier, until the end of next year, to exploit the fact. Even so, most people will let the $5 million opportunity slip by, as people always do with estate-tax saving opportunities. Because I hope you won't be one of them, let's look at the practical impediments to effective estate planning, the things that get in the way and eventually cost the survivors so much in unnecessary tax.

Haven't Gotten to It. Estate planning is not the kind of topic that draws most people in. And it's generally about the far future, so it's easy to tell yourself there will be plenty of time to deal with it later. If that sounds like you, maybe the $5 million opportunity that Congress is offering for just the next 21 months will spark some action.

Already Did It. If you've already done your estate planning homework, you probably don't want to reopen the matter. But if you have a large estate, making that effort could save your heirs $2.2 million in estate tax.

They'll Waste It. The thought of your 16-year-old grandson touring America on a $50,000 motorcycle likely does not live up to your highest hopes for posterity. Many wealthy individuals hold back from making gifts to younger generations because they don't want to see the money wasted. Concern that gifts would remove capital from the control of the family's most astute investor and cunning financial manager also discourages gifts. But such concerns are easily dealt with by using a trust. You can make a gift to an irrevocable trust of which you are the trustee. The property escapes the reach of estate tax, but you continue to decide how the money is invested and when it turns into spendable cash for the beneficiaries.

I Might Need It. You don't want to do such a thorough job of estate planning that you plan yourself into the poorhouse. It's pleasant to contemplate the financial head start you can provide for future generations, but not if you see yourself at the margin of the picture signing up for food stamps.

Offshore Solution

Those are the four reasons the government is able to collect billions of dollars in otherwise avoidable estate taxes every year. There's a way to shrink every one of those reasons and keep your family from eventually contributing to the government's annual take: use an offshore trust. Here's what happens when you put an offshore trust at the center of your financial planning.

Haven't Gotten to It. For reasons I'll touch on, an offshore trust is the optimal environment for estate planning. But that's really just a footnote.

An offshore trust is a cornucopia of benefits you can enjoy now. It provides unbeatable protection for your assets - protection from aggressive lawsuits, protection from lightning asset seizures and protection from the possible gold confiscation and currency controls that have many investors worried. It gives you entry to all types of foreign financial institutions, most of which no longer want to deal directly with Americans. That means more and better opportunities for profit and for truly effective diversification, and it means access to tax-efficient investment products you can't get in the U.S.

Because those benefits begin right from the start, they counter the psychology of procrastination. And once you've established an offshore trust to gain those benefits, it only takes about 5 minutes of your attention to use the trust to capture the $5 million advantage I've been discussing.

Already Did It. An offshore trust can accommodate every estate-planning strategy your lawyer has told you about. You won't need to reinvent your estate plan, you'll just need to relocate it. And while you're doing so, you can bring it up to date to exploit the opportunity that was handed to you by the 2010 Tax Act.

Moving your estate plan offshore achieves an additional, highly attractive advantage. After your lifetime, the trust completely disconnects from the U.S. tax system. Distributions to your survivors will be reportable and partly taxable, but no one will be subject to U.S. tax on earnings the trust accumulates. The trust needn't be in anyone's taxable estate ever again. And no one will have a U.S. reporting obligation for the trust itself. That's as out of town as money can lawfully get.

They'll Waste It. An offshore trust can do as well as a domestic trust in dealing with the spendthrift problem, and maybe a little better. It has an edge because it provides better protection from the creditors some of your heirs someday might attract. In the meantime, it allows you to continue to manage the underlying investments just as you do now.

I Might Need It. Here is where an offshore trust shines for anyone who wants to exploit the $5 million opportunity.

If you transfer money to a trust, whether offshore or not, and you include yourself as a discretionary beneficiary (one who is eligible to receive a distribution but who has no fixed right to demand a distribution), and you later discover that you need the money for yourself, the trustee will have the power to give it to you. But if the trust is formed in the U.S., the money in the trust probably will remain in your taxable estate, because courts in the U.S. generally will tap into such a trust to satisfy your creditors.

By the standards of U.S. gift tax rules, if something is still available to your creditors, you haven't really given it away. (A few states have passed laws that attempt to protect such a trust from the grantor's creditors, but those laws can't protect a trust formed in the U.S. from lawsuits against the grantor in federal courts. The money is still available to at least some of the grantor's creditors, so it is still in the grantor's estate.)

The situation in some offshore jurisdictions is different. You can include yourself as a discretionary beneficiary of your trust, and if you later have a problem with a creditor, the courts there will tell your creditor to go away. Because the trust is protected from your personal creditors, your transfers to it move the money out of your taxable estate - even though the trustee has the authority to give the money back to you if you later need it.

With an offshore trust, the money's continued availability for your own support makes it far easier to exploit the $5 million opportunity that Congress has handed to you. And if you are married, it's a $10 million opportunity, but it runs out at the end of 2012.

By Terry Coxon, The Casey Report

Terry Coxon, co-editor of The Casey Report, is president of Passport Financial, Inc., and for over 30 years has advised clients on legal ways to internationalize their assets to optimize tax, wealth protection and estate planning goals. Read here how you can take advantage of a U.S. tax act and save a lot of money in the process...

[The editors of The Casey Report - among them investing legend Doug Casey - leave no stone unturned to inform investors of the profit opportunities hidden in today's volatile markets. While the U.S. dollar is losing more of its value every year and the economic crisis continues unabated, there are strategies to stave off the slow drip-drain on your bank account. Read the details here.]

The British Virgin Islands was fairly unknown until it got savvy with offshore legislation that made Offshore Company Formation lucrative and much sought after. This archipelago has come from far, what with their current massive investments in their offshore banking institutions and the tight but flexible legislation that have made many investors come in the country in droves. For those who care to form offshore companies in this country, they will be keen to sample the following information:

Legislation
As earlier rendered, this country and countries like Seychelles and Belize have legislation that accommodates the budding international investor. For BVI for instance, since the introduction of a legal frame work in 1984, the country's laws have grown and amended to the current form that took into consideration the unique business needs of the budding industry. This was important because while it is important to keep the law and avoid unscrupulous businesses, it is also in the same token necessary to attract investment in your country or territory. Offshore Company Formation in such a country therefore becomes both secure and easy, a blessed business combination, so to speak.

Incorporation
Offshore Company Formation will definitely demand incorporation. The moment you register your IBC one would need a speedy registration process. Once one needs incorporation, in the same vein, speed is of essence. BVI's incorporation only takes 3 weeks. This means that an investor will begin getting down to business in record time and what this will mean is the profits will also begin getting in on time.

Even the company structure is fairly simple requiring only few directors, the same directors may also be shareholders among other sweet speaking options. However, Due Diligence, that demands that all client information be given before Offshore Company Formation, is strictly followed. This is to ensure that all the secured channels are followed with all diligence and safety.

Privacy and Confidentiality
Even after the Offshore Company Formation is done, names and other personal information will not be given out at all cost except when demanded by a court of law. A court of law that in itself must have taken all measures necessary to avoid the seeking of the personal information. Privacy and confidentiality are basically sacred and supreme codes in the business world and as a result are not to be bandied about like cheap liquor. Even the offshore company records are not to be forcibly shared with the government.

Taxation
The IBC Act of 1984 requires that all Offshore Companies be exempted from taxation for up to an elapsed period of 20 years from the point of formation. This means that the profits that are garnered within that specified period belongs to the owners and shareholders of the company without government cuts. Who wouldn't want to invest in IBC's in the near future with such a tax exemption?

While Offshore Company Formation in this country and others like it, as earlier mentioned, is lucrative and simple, the experience is more poignant when you consider also that they are very secure and functional too.

Offshore experts refer to the setup of a new offshore company as the "structure", you can always tell the passionate pro, by the look of mischief in the eyes when the topic arises, especially when the client is a fast-moving Internet start-up with lots of capital, rapid growth, and urgent demands to expand into new global markets. Let's say the client needs accounting and legal services because they intend to start processing credit cards, through an offshore merchant account, and they want to sync the timing with a product launch into Asian, Latin and European markets with the offshore newco.

The above scenario typifies a business case in today's cyber economy. Consider that Internet Marketing Gurus use Product Launch Formulas and a bevy of other tactics and techniques, to develop and launch Information products and coaching, as an example, where $1M in the first 24 hours, for a completely legitimate product, is booked in online sales. This scenario is more the norm than the exception. Several of these Internet enterprises continue-on to make in excess of $10M in their first year, this example is just one niche. The information product marketing phenomenon is happening in hundreds and hundreds of niche markets. Just imagine the Forex niche, and Day Trading? to mention a couple more. We're witnessing record numbers of entrepreneurs amass substantial wealth, while teaching others "How too", at a breakneck pace.

If the future the US Dollar is anything like economists will have us believe, then there's no better place for making money today than online, this is the new promised land and exploding with growth like never before, but now that Google has shown us that every global corporation and especially the savvy Internet companies of Silicon Valley take advantage of tax avoidance best-practices that are perfectly legal and prudent on the larger global playing field. A new precedent has been set with the so-called "Double Irish" tax planning strategy is out of the bag, now and every company wants to be like Google and be more competitive. Once again it's obvious that smart money operates offshore, and there are no shores online.

So now overnight you're an online success, you found the tipping-point, caught a lucky break on super viral social marketing campaign, your servers have crashed daily from the onslaught of credit card processing going through your registration pages and the phone is ringing off the hook with more offers and more ways to make money from the massive online following you've accrued. All the doors are open for you to expand into new markets, you know it's time to setup an offshore corporation. Now you seek out advice about trusts and structures etc.... This is when you meet the person, hopefully a legal professional, who's eyes light-up at the very mention of global corporate structure.

Sure, tax avoidance is the best reason for creating a legal offshore corporate structure but still not too much ahead of the other incredible benefits provided by an offshore company. Here are the Top five benefits of forming an offshore company with an asset protection corporate structure.

Tax avoidance. Completely legal, ethical and just plain intelligent if you intend to compete in a global market. The cost of a decent tax attorney will be repaid within the first year of operation.

Asset protection. If you don't look like you have assets, you're less likely to be sued. While an offshore account won't protect you if a court orders you to repatriate your assets, these assets are "off the radar screen" which provides a significant amount of practical asset protection. Moreover, an offshore account can be a gateway to other offshore investments that provide much greater asset protection.

Privacy. Anyone can hire a private investigator and find your domestic assets, including bank accounts, -or do it themselves on the Internet. But offshore investments are much more difficult to find. While you are required to disclose income from the offshore account to your domestic tax authorities, these records aren't ordinarily available to creditors.

Currency diversification. Many economists feel that the massive indebtedness of the governments of high tax countries such as the United States, Japan, and the United Kingdom will cause their respective currencies to decline over the long term.

Safer banks. The banks that we chosen for the Convenient Accounts do not engage in commercial lending, underwriting or other activities that could potentially put your assets at risk. Loans are made only against collateral deposited or otherwise held by the bank.

Offshore banking and investing is not littered with money laundering criminals, fraudsters, and tax evaders as many governments will have you believe. In respect to these types of crimes the reality is that there is infinitely more criminal activity onshore within their countries then there is offshore.

There is a huge difference between those who bank and invest offshore for legitimate reasons and those who do so for illicit and criminal reasons.

Unfortunately, because of the explicit efforts of the governments of the G7 nations, many people believe that this difference is slight to nonexistent. Not true I tell you. Seek out the facts, and the truth will be revealed.

Placing money and assets offshore is not now and will likely never ever be an illegal activity.

The truth is that offshore banking and investing can be most beneficial to almost anyone. The vast majority of individuals and companies that legitimately place money and assets offshore are fine upright law abiding people.

I guess part of the continuing challenge is that the word 'offshore' in the financial sense is synonymous in many people's minds with tax savings. In many cases this is true albeit more so in the past then in today's environment.

In the current environment, the tax saving advantages of the offshore world are mostly only available to a few people and institutions who are usually expatriates, non-resident in a high taxation country and with tax liability in a country where taxation is low or even non-existent. There are, however, many more real benefits available to those who choose to open an offshore bank or investment account.

The asset protection benefits, personal privacy advantages and the potential to access better account structures and services are available to the majority of people and institutions when they choose to bank or invest offshore.

Americans, British, Canadians and Europeans can potentially benefit in one way or another from opening an offshore bank or investment account.

However, placing assets offshore without informing the relevant tax authorities in your country of residence or citizenship can be illegal. The advice of a qualified attorney or independent financial adviser should always be sought before committing assets offshore.

The Bahamas for example, like many offshore jurisdictions today, is heavily regulated to protect investors and to prevent money laundering and terrorist financing. The increased regulatory environment has actually provided companies and individuals who bank and invest offshore in The Bahamas a greater degree of confidence and security.

In The Bahamas they have strict guidelines covering maintenance of client privacy which can further afford those seeking personal and asset protection with assurance that their identity and transactions will remain confidential. When it comes to protecting assets from potential unfair litigation, offshore structures like bank and investments accounts, trusts and foundations are often used in association with an offshore International Business Corporation (IBC) or an offshore Private Trust Company (PTC).

Another significant advantage of an offshore bank or investment account is the fact that such structures are usually far more flexible and accessible, pay better interest rates, often have lower charges and can offer those who regularly travel for work or pleasure the flexibility they need from a bank account through which they can transact in multiple currencies and to which they can have access from anywhere in the world.

Therefore, as you can see, the truth about offshore banking and investing is that it can offer many real benefits to many real people!

When you want to invest in the Cayman Islands, the place that you should be contacting is the Chamber of Commerce, as this is the best center to get any kind of business related information. This island has been a favorite spot for most business ventures for a long time now, since it has many potentials for investing in a Cayman Company.

There are many options to choose from in the Caymans, whether you want to invest in real estate, mutual funds or perhaps a business partnership, as any investments done on this island would be a lucrative venture. It is said, that investments flourish on this island simply because of the expansion in the population and the tourism industry.

In addition, there are also some key factors such as:

The stability in the government; the strong economic climate based on tourism; the intercontinental banking options and also the cutting edge national infrastructure.

The fact that investors would not have to pay the local taxation, such as capital gains, non-resident tax, income tax or any other comparable taxes that you will find in Cayman.

There are absolutely no restrictions on investors in regards to purchases.

There is maximum privacy and the investors don't have to worry about reporting earnings or ownerships to the government agencies.