Unlike companies incorporated in an individual's or a corporation's home country, an offshore company incorporated in an offshore centre may offer the owner :
- Low or zero taxation in the country where the company is incorporated.
- A greater degree of privacy.
- Less bureaucracy.
- To reduce costs.
These features make offshore companies ideal structures for safeguarding an individual's privacy, protecting personal wealth, minimizing tax and maximizing a corporation's profit.
Why do tax havens and offshore financial centres offer low or zero tax?
The governments of many countries actively seek international investment and trade to stimulate their own economies. The offshore industry has developed as a result of this straightforward objective.
Many of these countries are known as tax havens. Traditionally, tax havens are free from foreign exchange controls and have introduced specific legislation and corporate structures, designed exclusively for international business and foreign investment. An International Business Company, or an IBC, is the most widely used corporate vehicle in this regard with the widest variety of applications.
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