What Is an Offshore Company?
An offshore company is an institution based outside the country of its company client providing offshore business solutions. Quite simply, a business’ workload is passed on to the institution (offshore company) located outside of the country.
When People Register A Company In A Tax Haven, They Aim To Pay Less Tax.
A tax haven is a country, territory, or part of a country that offers extremely favourable tax rates. In fact, some of them have a zero tax rate.Examples of tax havens include the British Virgin Islands, Bermuda, Gibraltar, and the Cayman Islands.Small intermediate countries such as Singapore and Hong Kong are also popular places to register an offshore company.
Believe it or not, Hong Kong has a lot more to offer than just skirting import duties. If you’re interested in shipping your company’s goods from Hong Kong, then your savings could be even greater by registering your business there.
Hong Kong has become the go-to place for offshore businesses over the years. That’s of course partially because of the many wonderful advantages they have in the shipping and imports industry, but it’s also because they are a pleasure to do business with.
The government of Hong Kong actually imposes no taxes on businesses who operate outside of their country. If you’re an entrepreneur who manufacturers or sources products in China but only sells to customers in other countries, then this is you.
Though even if you do make some percentage of your income from customers within the country, they offer a very reasonable tax rate of just 16% in corporate taxes and taxes on salaries are capped at 15%.
Incorporating in Hong Kong is cheap and effective, and unlike the mainland the majority of the residents are English speaking, significantly easing the barrier to doing business there. This makes it much easier to set up negotiations with a warehouse and to find a competent fulfilment partner.
They also have a legal system which will be very familiar to westerners, and you can count on their consistency when compared to mainland China. This includes the ability to form a familiar LLC to protect yourself from any personal liability.
While opening a bank account in Hong Kong has gotten a little more difficult for foreigners in recent years, those with a legitimate business should have no issues. This also gives you the benefit of being able to transact with factories using their native currencies, keeping you from getting taken for a ride on “convenience” based currency exchange rates.
There is, of course, no need to register your business in Hong Kong to fulfill your orders there, but there are many benefits to doing so. It’s also not likely a route you should go alone.
Offshore Company Incorporating in another country will probably require the help of a lawyer to help you make sure everything is above board, especially if you live in the United States. Tax laws for foreign businesses owned by citizens who live in the United States are complicated, and the IRS is aggressive in claiming what they believe to be theirs come tax time.
However, even if you’re not sure if incorporating in another country is right for you, it’s easy and stress-free to set up your logistics operations there. No complicated corporate registration is required.
If you’ve been put off setting up shop on foreign soil before due to language barriers or cost difficulties, then Hong Kong can put many of those concerns to rest. It’s a beautiful nation with a lot to offer, and they go out of their way to make businesses and entrepreneurs feel welcome on their soil.
While the process of forming an offshore corporation is straightforward (and can be done in a matter of minutes, in some countries), laying the proper groundwork before and after the official process is important.
You need to consult with a provider who understands the rules and regulations in your home country, which most so-called “lawyers” on some deserted island have no idea how to handle (since most of them are just deflated volleyballs with painted-on faces).
The best thing you can do is choose the right representative. Overpaying a little up front is a no-brainer when it comes to your peace of mind down the line.
iPaytotal has partnerships with agents all across the world to get you the best offshore solutions customised for your business.
If you decide that starting an offshore company is the right move for your business, then you will want to choose an experienced firm that can help you set up the organisation properly.
iPayTotal has years of experience working with clients from all over the world. We offer a range of offshore services that can help you establish your company quickly so that you can start taking advantage of the benefits as soon as possible.We go the extra mile to ensure that offshore company can also help you save mone
Offshore companies typically pay lower taxes than those that are incorporated within their home countries. Paying lower taxes means that you can reinvest the company’s earnings or keep a larger profit without handing a lot of money over the government.
iPayTotal can help you with offshore company incorporation solutions that are reliable and affordable for your business.