Common Misconceptions of Offshore Companies
Offshore Companies are Illegal
One of the biggest misconceptions of offshore companies are that they are illegal to own or even be associated with. Offshore companies are perfectly legal. Every jurisdiction has its own laws about setting up a company. If done correctly and in accordance with the requirements of the foreign jurisdictions’ law, there is nothing illegal about establishing an offshore corporation.
Offshore Companies are Only suitable for those with substantial assets and capital
The legal and financial planning necessary to ensure that the offshore structure created will work best for a business is not likely to be cheap. Offshore companies can however be established by Offshore Universe at a competitive starting price. The cost of forming an offshore company is dependant on the jurisdiction chosen, and the additional services required to operate the company, depending on it’s purpose. In addition, Offshore Universe works closely with with offshore banks where there are low capital requirements to open an offshore account.
Offshore companies are risky
Forming an offshore company will of course involve some level of risk for the simple reason that it is a jurisdiction usually unfamiliar to the company owner, however, Offshore Universe only recommends the most economic and politically stable jurisdictions to incorporate an offshore company in. We chose especially international financial hubs like Ras Al Khaimah where financial security is world renowned.
Offshore Companies are used only for tax evasion
The vast majority of individuals who invest offshore are those seeking to maximise tax efficiency. Tax evasion means you avoid paying what you should be paying when it’s required by the laws, which is illegal. Tax avoidance on the other hand means reducing paying more than what you should, as the law permits of tax. Offshore company structures facilitate the ability to reduce tax liability by moving business to low tax jurisdictions.
Offshore Companies are complex structures difficult to set up
Offshore Universe is able to create offshore company structures to suit the tailored needs of different businesses. Offshore company structures may be created more complex through the use of trusts or foundations as extra layers of protection, however the actual structure may be as simple as having a company registered in a jurisdiction where there is low tax liability.