Offshore Limited Companies are Tax Free Entities

International business companies and offshore limited liability companies are the two most common forms of offshore limited companies. They are incorporated and registered in offshore jurisdictions and basically serve to trade internationally.

Part of our service involves introducing patrons to economic citizenship. This offers a chance at getting a second citizenship. So when incorporating or after having done so, individuals can ask about our registered agent service. We put patrons in touch with our partnering agents and process citizenship applications. Advice on how to apply and additional asset protection tools is also given.

But the latter is not the only use of the offshore limited, since offshore limited companies are tax free entities and are not subject to taxation on any form of income earned outside the jurisdiction. Offshore jurisdictions also do not levy taxes on the international income of an offshore limited and this creates many possibilities for operating with lower overheads and tax liabilities. This benefit is compounded if an offshore limited company uses tax treaties that are available for trading within certain countries and knows how to strategically plan to operate in a manner that fully utilizes these tax reduction facilities that help facilitate and lower the costs of international trade.

The offshore limited is known for its flexibility because formation procedures are generally straight forward and require very little documentation. For example, the beneficial owner of an offshore limited may be only required to submit a valid copy of a passport or national ID card, a declaration stating the activities that are intended and the countries of operation, proof of address and the name of a reference must be submitted. Due to ‘know your client’ requirements, the legal and natural persons that are forming limited companies offshore are required to submit truthful and sufficient details regarding their identity, place of residence, telephone number, email address and profession. This is particularly so as offshore company agents must have sufficient details about the customers for whom they are incorporating offshore limited companies and so that contact can be made when necessary with the customer.
Every offshore limited must have a registered agent who takes care of the incorporation process of the company. Changes made to the directorship, shareholding, capital structure, name or other aspect that may require that the corresponding changes be made to the constitution of the limited company offshore must be communicated with the offshore registered agent who in turn informs the registrar immediately. Any changes to the trade name, intention to do so or adoption of a new trade name must also be communicated to the agent. Offshore limited companies are not supposed to operate under names that have not yet been approved and registered by the registrar of the jurisdiction where the company was incorporated, so notification must be first given and the name has to be accepted before trade can occur under the new name. Names must all end with an accepted word or abbreviated that means the same as limited company (ltd.), such as incorporated or inc. and could be in a foreign language as long as the effect is the same, such as Société Anonyme, Sociedad Anónima or AG – Aktiengesellschaft.
Limited companies offshore have been used as asset protection vehicles and are particularly governed under laws that make special provisions that protect the privacy of the details of the offshore limited and its members.

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