Offshore companies and bank accounts are now an undeniable fact of our financial times, however these are still largely misunderstood entities.
Certainly when conversation arises about such entities it is common to hear comments regarding tax evasion. Whilst it is certainly undeniable that these entities in most cases do benefit with regards to tax relief there are so many other advantages and reasons as to why it may be better for your business to have an offshore rather than an onshore company.
ASSET PROTECTION
One of the most common reasons for the incorporation of anoffshore company is to separate the individual from his or her assets. This may be an effective way of protecting the assets should any potential hazards befall the individual such as supposedly wronged spouses or other individuals or corporations looking to sue them come along.
PRIVACY
This normally comes hand in hand with asset protection, but there might be a variety of legitimate reasons why an individual would want to set up a company, but would not want it made public that they are the owner. Depending on the jurisdiction a variety offer registry’s that are not open to the public, these means that information on the directors, shareholders and other officers are not easily obtainable. Chesterfield also offer nominee services, which means that we provide the directors, secretaries and shareholders on the company and manage all the affairs of the company. We operate under strict confidentiality rules to ensure that the privacy of our clients are protected and also operate under strict anti-money laundering regulations which help ensure that these services are used for legitimate services.
BUSINESS ADMINISTRATION
It may simply be that the jurisdiction of a clients domicile simply does not meet their companies needs. Increasing corporate governance and international regulations are making it more and more difficult for companies to meet statutory compliance requirements. Sometimes another jurisdiction with more appropriate requirements is advantageous. For example some jurisdictions can take months to incorporate, certainly a difficult problem when a company is required urgently, however some jurisdictions permit incorporation in as little a 24 hours. Some jurisdictions have restrictions regarding the number or nationalities of the directors even in some cases the qualifications. Offshore companies can solve many business administration issues, for example an offshore company can hold a property, in the event of a sale it is possible to transfer the shares in the offshore company rather than the title of the property, thus saving time and money on legal and transfer fees.
With the help of professional firms such as Chesterfield who are aware of all restrictions and compliance requirements of the various jurisdictions means that it is possible for the client to outsource their statutory compliance responsibilities so as they can be assured that the company is run correctly and efficiently whilst complying with the full range of statutory and commercial regulations. Chesterfield always keep up to date with changing global compliance and regulatory rules to ensure that we are able to give the best advice to our clients and ensure that are companies are run to the highest standard thus negating all possible problems. It is common for many companies to outsource their secretarial, accounting and payroll functions to professionals such as Chesterfield in order to free up the client to focus on their primary business without the extra worry.
