When initially launching your first company, you probably, and quite naturally, registered the company in your home jurisdiction or territory. Tax liabilities and accounting is more familiar in our local towns and cities. Early start-ups benefit from familiar financial terrain. But as we scale up it might be worth looking at an offshore company registration.
Business usually begins small and local and expand. But as your brand grows, and especially as you build up to an international-level audience of customers or subscribers, you might turn your eyes to offshore company registration. The advantages of moving your company offshore or forming a new company in a jurisdiction other than the one where it does its primary business are discussed below.
Why Consider Offshore Company Registration?
Many business owners are considering offshore company registration services to move their company registration offshore as their business expands. At a certain stage of expansion, and as a service or product becomes more popular, it makes sense to consider offshore registration. One of the biggest motivations is tax savings. It should be made clear that tax savings and tax evasion are two different strategies – the former is recommended and the latter highly discouraged. When looking at strategies to help your business perform better one method is to switch tax jurisdictions to one with a more favorable tax environment. Besides tax benefits, registering a company offshore might attract diverse and additional opportunities in regard to revenue income. New customer bases can be established and product or service awareness broadened.
Registering your company through an official legal setup could be the best way to see your brand upscale. Most companies reach a plateau and while they do not stagnate, they may not grow to their full potential. By conquering new territories this is potentially avoided while limiting tax liability.
Legal Protection and Asset Protection
Offshore company registration can provide significant legal and asset protection to your enterprise. Depending on the exact laws and regulations of the new jurisdiction to which you move assets and interests can be protected from future liabilities, like lawsuits, or other civil actions.
Trusts, investments, and offshore bank accounts can put financial items in the possession of an offshore corporation. If a judge in your original jurisdiction orders an asset search, offshore assets will be much harder to discover. The privacy afforded by offshore company registration can also protect your assets just by reducing public awareness of those assets. It’s difficult for a disgruntled customer, for instance, to sue you for a certain asset if they don’t know you have it in the first place.
Registering a company offshore is a big move. It will change your business operations significantly. But it’s could also be a strategic and necessary move as your company grows and becomes more powerful and collects assets. You don’t want to make that move with anything but absolute certainty, and it best to speak with a professional company that specializes in offshore registration before doing so.
