Albinet

An offshore company is one which does not conduct substantial business in its country of incorporation. They are sometimes known as non-resident companies. Offshore companies may bring a number of benefits to individuals or companies.

Taxation - business may be structured so that profits are realized in ways that minimize their overall tax liability.

Simplicity - except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up and maintain companies.

Reporting - the level of information required by the registrar of companies varies from jurisdiction to jurisdiction.

Asset protection - it is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.

Anonymity - by carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation. Having said that, current anti-money laundering regulations often require banks and other professionals to look through structures.

Thin-capitalisation - offshore jurisdictions tend not to impose "thin-capitalisation" rules on companies (except for regulated entities such as banks and insurance companies, allowing them to be formed with a purely nominal equity investment.

Financial assistance - offshore companies are usually not prohibited from providing "financial assistance" for the acquisition of their own shares, which avoids the needs for "whitewash" procedure in certain financial transactions.