Offshore Holding Company for your legal structure!
Learn how you can setup a offshore holding company without visiting the country of your choice.
If you have a business that is turning hard work into hard earned profits and you want to protect these funds you want to consider a Offshore Holding Company.
With an Offshore Holding Company you take the level of asset protection to new highest, get rid of lenders and creditors and get protected now.
Offshore Holding Company- The What And The Why
A holding company is a parent company that is the technical owner of another company. In essence, the holding company holds the majority shares of the held company. There are a whole lot of reasons and advantages to it, which is why many corporations chose to do business this way, but most of them emerge from the fact that doing business this way, allows for the holding company to be located offshore.
So you could have a company that is based in the US whose majority shares are held by an offshore company that is functioning from Panama. There is a certain misconception that businesses setup an offshore holding company only because they want to evade paying taxes or coz they are doing something illegal but that is not entirely true. Even in the recently leaked Panama Papers, you can see that while there are plenty of famous people in the list, most in fact were running totally legitimate operations.
Advantages of an offshore holding company
Tax advantages are the primary reason why many people start up an offshore holding company but it must be noted that such an advantage is not restricted merely to saving on the taxes that you are paying. You also get to enjoy the benefit of tax deferment, which means that you can pay the taxes sometime in the future than paying them right away. Needless to say, such money can then be invested elsewhere in the held company.
Since an offshore holding company can hold more than one company or subsidiaries, such money can be reinvested instead of being allocated to yearly tax payments.
The reality is that starting up a offshore holding company is often considered the first step in internationalizing your organization. Heck, even giant corporations likes Google and Apple are doing it and done the right way, you can run a completely 100% legal operation too. After all running offshore operations is all about maximizing your profit potential and shedding risks.
Tax exemption on foreign income and capital gains
A holding company that is based offshore can be used to avoid taxes on all sources of foreign income whether it originates out of trading, investment or even property ownership. Essentially you are paying taxes only for the income that is actually generated in your home country.
Such an operation also allows you to enjoy exemption of taxes on any capital gains. The best part is that this doesn’t just involve overseas capital gains but also capital gains made in your native country. Again, these assets will need to be owned by the holding company and not the held company. So an offshore company could hold property in UK that it could sell and yet not pay any tax on the capital gains.
The truth of the matter is that using an offshore holding company secures a whole lot of advantages for you and your business. Nothing can ever be 100% secure in business but setting up such an operation is surely a step towards strengthened security.