Though offshore investment is a relief for many as it proves good in protecting assets and giving tax benefits but one has to find the tax havens to enjoy such benefits. The benefit of these tax havens are either they are tax free or offer an annual or fixed tax scheme, which is independent of the income of the person or a company. Former colonies like Seychelles, BVI,hk company formation, Hong Kong, channel Island and traditional high tax countries like US and UK.
This is because of the fact that to lure foreign investment the tax policies related to non-resident countries are lenient. But here it does not mean that by allowing non-resident companies on their land, foreign countries are in loss. Instead, it is win-win situation for both the parties.
The benefits that an offshore investment provides include risk management, tax benefits, asset protection and virtual office services. Here, an entrepreneur can also get benefit by the regime of investing on the foreign land for setting up the services and operations. In addition to this, non-resident companies enjoy the privilege of not publishing and making public the information related to the financial directors and stakeholders and they do not have to come with a document regarding this. Hence, they can preserve the secrecy of the documents.
The types of offshore companies include limited liability companies and protected cell companies. Both of them have there set of advantages and disadvantages and you have to choose which one would you like to go for, according to the suitability of your requirements.