Offshore Companies Types, Business companies and Partnerships

The international business company is commonly called ‘offshore company’ and is an ordinary company with limited liability that is used for conducting business operations internationally, specifically outside of the country of this offshore company formation. The IBC is the type of offshore company that is capable of engaging in almost any type of trade provided that all activities are legal and do not contravene any law regardless of the country or region of operation.

Offshore Foundations

Offshore foundations are offshore entities that are used to protect assets. Offshore foundations are tax exempt like all other offshore entities and protected by rigid privacy regulations. Offshore foundations are very similar to trusts, but have technical differences that make foundations appear more effective than offshore trusts for the type of asset protection that a specific person or company may be seeking to achieve. Offshore foundations are their own owners and have no legal owners like offshore trusts and thus claims cannot be made on the estate of an offshore foundation. This type of offshore entity is useful in many ways and is an effective way of accumulating wealth on assets while being guaranteed of full protection.

Citizenship-by-Investment

Dominica passport refers to programs in the nations of Dominica and St. Kitts and Nevis whereby foreign nationals are able to apply for citizenship. This is done by an investment in real estate or the economy. Applicants are allowed to have this citizenship as a second citizenship and enjoy the benefits of a second passport. There are no residency requirements under these second citizenship programs.

Offshore Limited Liability Company

Limited Liability Companies are the type of offshore companies that are considered hybrid structures because of their structure. This type of offshore company was created by combining features of both the international business company and the partnership, enabling the offshore limited liability company to be a pass through company for taxation while having limited liability. Offshore limited liability companies are owned and controlled by their members and therefore can be easily ran and managed since there is not a sophisticated administrative system as may be the case with the ordinary international business company which requires a board of directors. Offshore limited liability companies is however the type of offshore company that is closest to the international business company and in its own right is an offshore company/international business company but has distinguishing features, hence being identified under another name, the offshore limited liability company or offshore LLC.

Offshore Insurance Company

Offshore insurance companies operate in the same manner as local/onshore insurance companies. This type of offshore entity/company is used to hedge against risks and brings forth many benefits because of its nature an offshore entity. Offshore companies benefit from the tax exemption, ability to carry on business internationally and rigid privacy regulations enjoyed by all types of offshore companies and entities.

Offshore Protected Cell / Offshore Segregated Portfolio Company

Offshore protected cell or segregated portfolio companies are a type of offshore company that is created to segregate/isolate the assets and liabilities of various types or classes of shares from each other. The concept of the offshore protected cell emerged in Guernsey and provides an alternative to captive insurance in the sense that segregated shares or assets can be placed into a cell or segregated portfolio to insure risks that may emanate from a group or parent group of offshore companies. As an asset protection vehicle, this type of offshore company allows assets to be protected from certain risks by preventing them from being implicated in any losses or liabilities that may affect shares/assets of a certain class or category. Creditors, potential litigators or other persons may be thus restricted to having access or recourse to only specific assets, preventing a large amount of assets from being lost to any credit or litigation claim. This type of offshore company is commonly used whenever an offshore collective scheme is created in that the offshore protected cell or offshore segregated portfolio can be used to hold assets and in capital markets.

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