The offshore services industry is constantly plagued by negative press depicting it as a way for rich people to cheat on their taxes. Offshore company formation can be done for legitimate business reasons and Panama is a top choice worth taking a look at. offshore company
What is Offshore Corporation Formation?
Forming an offshore company simply means incorporating a business in a country other than the one you reside in. It does not have to mean incorporating in a tax haven. You could, for example, form a company in the United States which would be offshore to you if you lived in France.
The media at large has had a field day with the offshore industry and in particular, tax havens, seemingly only reporting about them when a serious crime has been uncovered. It stands to reason since these tax havens promote privacy that they really have no recourse to fight back in the media since drawing attention to themselves and their clients is exactly the opposite of their intention.
Why Form an Offshore Company?
There are a number of positive benefits that can be realized through offshore company incorporation. The lion’s share of people that are drawn to offshore company formation are seeking greater privacy in their financial dealings, increased layering for asset protection purposes and a reduced tax burden on capital gains.
Forming your business offshore does not preclude you from paying your fair share of taxes on income in your home jurisdiction. The advantage of having an offshore business is once you have paid the taxes in your home country and moved this money to an offshore tax haven, your money can grow there tax free. In general, tax havens will not charge a capital gains tax nor will they tax foreign derived income.