If you are thinking about starting your own organization, then you might have considered the possibility of establishing it as an offshore company. An offshore company offers benefits that regular companies cannot match. Before you decide what kind of organization to establish, you should learn a bit about how starting an offshore company might benefit you.
What is an Offshore Company?
First things first. What is an offshore company? At its most basic, an offshore company is simply an organization that has been incorporated outside of its home country. For instance, if your company operates in the United States, then you could establish an offshore company in countries such as New Zealand, Switzerland, Panama, and similar countries that are hospitable to foreign organizations. The offshore company cannot, however, do business within the host country.
The way that an offshore company functions greatly depends on where you incorporate. An offshore company in Panama, for instance, has all the legal rights of an individual. It is owned by a collection of stockholders. Those stockholders, however, are only held liable for the amount that they invest in the company. This protects them from significant losses that could result from business failures, lawsuits, and other unforeseen events.
What is the Benefit of Establishing an Offshore Company?
The benefits that you get from establishing an offshore company depend on two important factors: where you live and which host country you choose.
Many companies choose to incorporate in Panama because it is known as an international country that does not regulate industry aggressively. If your company is incorporated in the United States, for instance, you cannot do business in certain countries, such as Cuba. When you have an offshore company, though, those regulations do not apply to you. You can, therefore, make business decisions that will benefit your organization without worrying that you will break regulations created by overzealous policymakers.
Having an offshore company can also help you save money. Offshore companies typically pay lower taxes than those that are incorporated within their home countries. Paying lower taxes means that you can reinvest the company’s earnings or keep a larger profit without handing a lot of money over the government.
In addition, offshore companies offer a considerable level of privacy, especially when they are established in countries like Panama and Belize, which has very strict privacy laws. When you establish an offshore company in Panama, you can protect your investment from outside parties. Depending on which type of stocks you choose, you might even be able to keep the names of stockholders completely off of the company’s records. This offers a level of privacy that is unsurpassed anywhere else in the world.
Starting an Offshore Company
If you decide that starting an offshore company in Panama is the right move for your business, then you will want to choose an experienced law firm that can help you set up the organization properly. Delvalle and Delvalle, for instance, have years of experience working with clients from all over the world. They offer a range of offshore services that can help you establish your company quickly so that you can start taking advantage of the benefits as soon as possible.