The term “offshore” is most often
used to describe any business activity or investment made outside the country
of residence. An Offshore company, also known as an international
business company (IBC), is a company incorporated outside the place of residence
of its directors, shareholders and beneficial owners. Offshore
incorporations can be incorporated in a number of jurisdictions, including
British Virgin Islands (BVI), Anguilla, Belize, Seychelles, Bahamas, Panama,
Cayman Islands, etc. It is often pursued to realize various financial,
legal or tax benefits.
Why incorporate Offshore?
Offshore companies are widely used
to protect assets, legally minimize tax obligation and provide corporate
structures necessary for the operation of the international business.
Business men and foreign investors especially from countries with high
taxes became attracted to these offshore jurisdictions and enjoys total
exemption or at least a substantial reduction of the taxes from their profit
provided that they are not carrying business within the tax haven itself.