All about Offshore Accounts and Offshore Company Formation
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Posted On :
Aug-19-2011
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Article Word Count :
445
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In recent times offshore accounts and companies have come into a lot of public scrutiny due mainly to certain misconceptions regarding tax haven countries and the association of black money with offshore accounts in public perception.
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In recent times offshore accounts and companies have come into a lot of public scrutiny due mainly to certain misconceptions regarding tax haven countries and the association of black money with offshore accounts in public perception. It is, however, wrong to consider offshore accounts to be completely tax exempt, nor is tax evasion the main purpose behind opening offshore bank accounts. Many of the banking jurisdiction countries do not charge any tax for accounts but some nations levy withholding taxes on income generated from the offshore accounts held by foreign account holders. There are also many countries like the United States, for example, that happen to levy taxes on worldwide income. The main purpose behind opening offshore accounts and the formation of offshore companies stems from efficient legal tax planning, and protection of financial assets as well as wealth management – not tax evasion as many people would like to believe.
An offshore company formation has become quite popular in the business world especially for businesses interested in taking advantage of favorable banking regulations, tax laws, and strict privacy norms. An offshore company formation of course refers to establishing companies in countries other than one’s residence. In other words, a company that carries out its business transactions not in its home country, but is formed in a foreign country. The main purpose behind a successful offshore company formation is, of course, efficient tax planning, easy transfer of money as well as protection of wealth. One of the biggest advantages of creating an offshore company formation is the stringent privacy laws followed in most tax haven countries. Laws pertaining to the confidentiality of account holders name and private details are a lot more secure in an offshore jurisdiction than in the original home country, which basically means greater protection for your financial assets.
Here are some tips on how to begin planning an offshore company formation:
• Select the right jurisdiction in regards to your business. This is probably the most crucial aspect of offshore company formation. It is advisable to select a tax jurisdiction that complements other business dealings like investments, financing, and so on.
• Once the planning stage is complete and you are ready to move in to execution phases, first thing you need to do is file a memorandum of association with the proper authority in your chosen jurisdiction. This registration will issue the certificate of incorporation after which a company resolution is passed and broad of directors is formed. Next, the first meeting of the board of directors is called to decide the company seal and appoint an official banker.
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Article Source :
http://www.articleseen.com/Article_All about Offshore Accounts and Offshore Company Formation_75182.aspx
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Author Resource :
Peter Robertson is an author who writes useful articles on offshore company, offshore banking, offshore account, asset protection, and related topics for those who are interested in offshore company formation. For more information on offshore company, and international tax planning, you can also visit www.carloscevola.com.
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Keywords :
international tax planning, offshore company formation, offshore banking, offshore trusts, offshore company, offshore account,
Category :
Finance
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Finance
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