- Zero Tax:
companies are exempt from taxes on all profits gained outside the
jurisdiction. The taxation rate is zero percent (0%) for an
An IBC has
the right to keep all information about all involved persons: its
directors, secretaries or shareholders confidential. The law
prevents anyone from enquiring about the details of owners and
employees. The owners are not legally required to disclose any
information about their company to anyone.
Annual Accounts: Financial records of an IBC, including
information such as company accounts and share capital can be kept
- No annual
returns: An IBC is that it need not file annual returns.
- Flexibility of
Use: An IBC
has diverse investment opportunities. An offshore companies may
conduct almost any type of business activity.
- Company meetings
of an IBC can be held anywhere in the world - not necessarily
in the jurisdiction where the company is registered. Moreover,
physical presence of attendees is not required during meetings –
meetings may be conducted over the telephone and over the
Internet, etc., thus saving time and travel expenses. IBCs also
need not hold Annual General Meetings.
Compliance Obligations: A single individual can register an
IBC in an offshore jurisdiction, being appointed as company
director at the time of incorporation while also being the sole
shareholder. A company secretary need not be appointed.
Using an Offshore
Company: is it legal?
companies can be used in legal schemes of tax planning.
Likewise, however, like any other instrument, they can equally be
used in illegal operations, including illegal deviation from
discharge of tax and criminal money-laundering. The legality of a
certain transaction from an offshore company is defined by the
legislation of the country of registration, the legislation of the
other countries-members of the transaction, and also by the
international treaties. Many developed countries apply certain
limitations on operations with offshore companies for its residents,
but full prohibition is almost never used. Our handholding
approach means that we can provide the necessary legal guidance
before each and every important transaction is effected, thus
avoiding potential illegality or irregularities.
Limitations of the use of Offshore Companies
Many countries impose certain limitations for its residents on the
use of operations with offshore companies (the so-called
"anti-offshore" regulation). Full prohibition is almost never used.
Nevertheless, there are certain discriminatory restrictions, for
example, increasing of taxation on operations with offshore
companies for country's residents and applying additional currency
Typical Uses of Offshore Companies
are beneficial for many purposes including at least some of the
1. Consultancy, Professional Services, Agency
consultants, artists and many self-employed individuals can gain
substantial advantages by working as employees or as external
consultants of offshore companies, of which they may be the sole
shareholders and, if they want to, the sole directors.
2. Employment of
overseas can frequently benefit from being employed through an
offshore employment/consultancy company. This can avoid tax being
deducted at source. By not remitting the full salary it can minimise
tax and avoid exchange control difficulties in the country of
temporary residence. This arrangement will be particularly
attractive to expatriates working in politically unstable countries.
3. Property Owning
There are often
significant advantages in using an offshore holding company for the
purpose of holding property. The advantages of such an arrangement
include the avoidance of inheritance tax, capital gains tax and the
ease of sale which can be achieved by transferring the property
owned by the company and reduction of property purchase costs to the
through investment companies set up in offshore areas can be
invested or deposited throughout the world and whilst generally
returns or interest payable in respect of these funds will be
subject to local taxation, there are a number of offshore areas in
which funds may be placed as bank deposits where the interest and/or
the capital gains are paid and kept gross. To invest in global
securities including mutual funds not available to "local" citizens.
Offshore jurisdictions are typically less invasive allowing for
aggressive and unrestrained Free Enterprise.
Patents and Trademarks
can purchase or be assigned the right to use copyright, patent or
trademark. Royalties can then be accumulated offshore although often
royalties may suffer withholding taxes at source. An interposing
holding company in some cases may allow a reduction in the rate of
tax withheld at source.
A high net-worth
individual can save professional fees and unwanted publicity by
owning property or other assets through an offshore company. ECI can
provide a wide range of services in the field of privacy protection.
To file first
position liens against assets and property closing the door to
predatory litigation before it begins.
To segregate high-risk investments from other more secure holdings.
To protect retirement funds from possible bankruptcy.
To provide for the transfer of assets for the next generation in an
efficient and discreet fashion.
Nominee directors and officers can allow you to conduct business
transactions for your benefit while you remain anonymous.
To access your funds with corporate debit or credit cards thereby
maintaining absolute confidentiality.