Why are offshore companies formed?
An offshore company (foreign company) is generally used for a combination of asset protection and tax mitigation. It can be used as a stand alone vehicle or as part of a larger trust/corporate organizational structure (exhibit). The formation of such a company is usually the first step to expand into a new market, re-locating manufacturing or production, building a new distribution network, purchasing a brand and protecting its intellectual property asset by segregating it from all trading activities related to the brand Cross border organisational structure with shareholder and royalty structure As a company is considered to be a distinct legal entity, residents of high tax countries may be able to reduce the tax they pay by arranging for profits to be attributed to a company which is subject to lower tax area or even a zero tax jurisdiction. The choice of offshore jurisdiction depends on the customer’s business objectives and what the corporation is going to be used for. These are th
