Save taxes. An international business company
(formerly referred to as offshore business) takes
advantage of the lower tax rates prevailing in the
country of incorporation compared to one's own country,
provided there is a double tax treaty between the
two countries for the avoidance of double taxation.
An international business company is used as a vehicle
in international tax planning to direct profits out
of high tax countries to offshore jurisdictions and
international business centers, thus taking advantages
of the lower or zero tax rates and double tax treaties;
therefore, by directing your taxable income to your
offshore company, you can reduce your tax burden,
In the following section, we explain how this is done
in practice for the importers, exporters and business
services companies.
Anonymity. An offshore business makes it
possible to receive money, commissions, and other
income with anonymity.
Confidentiality with respect to the beneficial
owners, offers the opportunity to carry out business
without anybody knowing who is behind the company
or buy property in any country without anybody knowing
who is buying or even hold current assets, such as
shares or just a bank account by maintaining your
anonymity. This is possible through the registration
of the shares to nominee shareholders and directors,
or in some occasions through the issue of bearer shares.
Low administration costs in running one's
business from offshore business centers, as some offshore
destinations like Cyprus, provide a high standard
professional business environment, located near the
markets of Europe, Middle East, Africa and the Gulf,
also offering pleasant living conditions at relative
low cost.
