Geographically, the British Virgin Islands are located in the Caribbean. The state includes 36 islands of which only 16 are inhabited. The bvi offshore incorporation, as one of the tools for organizing a business, continues to retain their popularity.
Today, the foreign economic activity is interconnected with offshore companies and banks. The assets of many financial and industrial groups are registered in non-resident structures registered in the so-called offshore and low-tax jurisdictions. The widespread use of offshore companies in doing business is due to many factors that will be discussed below.
Benefits -
- The ability to maintain the confidentiality of commercial information is very valuable. In offshore zones, information about the owners or shareholders of the companies is closed. In addition, there is the possibility of appointing so-called nominee directors and shareholders in the company, which additionally ensures the confidentiality of information about the ultimate owners.
- The advantage of offshore companies is also the simplicity and speed of establishing such a company. To start its operation, it is necessary to determine who in the company will be a director, shareholder, the size of the authorized capital, and open a bank account. At the same time, the physical presence of the founder in the country of registration of the offshore company is not required. The corporate characteristics and basic building blocks of a typical offshore company are flexible and easy to maintain and manage.
- Another advantage of using an offshore company is that it can act as the owner of assets of foreign companies and consolidate the main profit from the entire business. An offshore company can have accounts in any banks in the world, including those where there is no foreign exchange control, which in turn contributes to the prompt movement of funds. Skillful use of offshore is an effective investment mechanism, as it allows you to accumulate funds and direct them to promising projects in other jurisdictions. At the same time, both the safety of capital and its mobility are ensured, there is always the possibility of transferring shares and shares of an offshore company with minimal costs.
- The tax factor plays a special role in business and is taken into account when making business decisions. Therefore, reducing tax payments can also be called among the advantages of offshore. At the same time, in offshore territories, there is very little or no taxation of companies, there is only a fixed annual fee, which does not depend on the amount of the company's income. In general, the use of offshore companies allows you to optimize the taxation of business activities.
Conclusion
Offshore companies open up a variety of opportunities for their owners to use these companies (for trade operations, insurance, registration of ships and aircraft, and much more). Offshore jurisdictions have a different direction, and each can provide a business with its own opportunities. An offshore can be a tool for tax planning, asset protection, simplification of document circulation, acceleration of financial flows and, in general, ensure the development and increase of business efficiency.