If you choose to register your company offshore, you will qualify for the benefits afforded in your chosen jurisdiction. The primary advantage most business owners look for is the possibility of paying less tax than in the United Kingdom. Some offshore locations offer great tax reductions and even complete exemption from tax liability on corporation and personal tax, on income tax, dividend tax and tax levied on interest paid. However, taxation is only one of the many benefits you can enjoy. There are several other things to consider when deciding on a location for your company’s offshore registration.
If low or no tax liability is the key reason that you wish to register your company offshore, ensure you look into all the implications. Despite some beneficial tax reductions, you should also look into whether you are liable for individual and corporation tax. Also, will dividends be free of tax and interest payments to you personally or your business liable for tax? These are the sort of factors you should investigate when choosing a jurisdiction for your offshore registration.
The cost of offshore registration will vary between jurisdictions. Some are extremely cheap and others will be more expensive. This is another factor to weigh up as your company will need to absorb the registration costs and ongoing maintenance fees. You should ensure there are no concealed costs. Most experienced and reputable offshore registration firms you may use will make sure that you do not receive any unforeseen additional fees.
Confidentiality can be a key feature of offshore registration. Some offshore locations will not need details about your directors and shareholders, although most demand a minimum of information. However, this is not usually put in the public domain and it is quite common to be able to use a nominee director service, to enhance your privacy. The level of confidentiality you require will, ultimately, be your decision when choosing your ideal offshore location.
Offshore registration can be completed whether you wish to enlarge an existing business or create one from scratch. Tax benefits are almost always offered, privacy is guaranteed and there can be a number of other advantages. Choosing your perfect offshore jurisdiction should be based on set up and maintenance fees, taxation rules and confidentiality advantages. You should also investigate whether the location has double taxation treaties in position.
