What is an Offshore Company?
A company registered in a jurisdiction that is considered a “tax haven” is generally called an “offshore” company. These companies are formed for many purposes, the most common of which are privacy and asset protection. This type of company must be registered by a licensed, experienced attorney who will keep the client’s information confidential.
An offshore company should never be registered by banks, accountants, or by any other institution which does not have guaranteed confidentiality of an attorney. An attorney can provide the right credentials and appropriate protection needed in an offshore structure.
There is no other business structure which offers stronger asset protection with as great flexibility as an offshore company. However, if it is not formed correctly, by a experienced attorney, the company can lose the basic principles and purpose of privacy and confidentiality.
Why form an Offshore?
Placing assets into offshore companies with the appropriate legal structure and formation can offer an excellent layer of protection for the owners’ assets, with tremendous great flexibility. Once shielded by an offshore structure, the ownership of any valuable assets is very difficult to be identified, even with the help of a professional asset search. Only the government will have the means to identify the owner of the particular structure.
Forming an offshore company and titling the assets to the company means they are no longer tied directly to the owner’s own personal name. Therefore, the assets can be shielded from legal opponents, simply by structuring the ownership as offshore entity identification. Another great benefit related to the use of an offshore company is simplicity and flexibility. Any and all assets, wherever located, can be held by the offshore.
In the US, it is the most common use of offshore companies is for the foreign real estate buyer purchasing property in US territory. The right offshore formation will assist to avoid the inconvenience and vulnerability which can exist if the same property were purchased without it..