6 Reasons That Set Some Businesses Worlds Apart

ByMike S Seantly

One of the hesitations that many have about businesses in general, especially the ones overseas, is how to run them efficiently. They seem to have a more elusive feel to them and yet with the right structures in place, they have the potential to outdo their onshore competitors.

When it comes to the limited offshore company, it is easier to set them up because they have fewer restrictions and requirements. However, this is not the only benefit they accord.

Low tax rates

This sort of businesses enjoys some of the lowest tax rates. However, this is, in no way meant to encourage any illegal tax evasion and as such calls for a lot of filing and reporting to bodies that look into the tax affairs in a country.

Easy access to financing

One of the more challenging aspects of setting up a business is the need to source for investors to buy into the business. This is however, a less tedious task with this kind of overseas dealing because once the limited company is set up, this means that, very little resistance is seen towards investors who are within the jurisdiction and are looking to be a part of the business.

Guaranteed asset protection

Assets are so called because they are vital to an organization; they are seen an important and indispensable part of the entire business. With this type of company, there is little chance of creditors accessing the overseas investments in a bid to liquidate them and pay back a debt; the account is actually in a foreign jurisdiction thereby offering a form of barricade preventing litigation.

Liability issues

When it comes to issues that involve the company being sued or held responsible for any illegality, one of the benefits that this kind of business accords is that the organization and the individual owing it are recognized as 2 separate entities. At no point is the owner required to come in and pay up alongside his company. Payments are restricted only to his business.

Profit distribution

All the shareholders by way of dividends can access the gains that are made by the organization. This is a more transparent way of ensuring all are kept abreast of the running of the overseas business.

Flexible administration

The ownership and control of the business are made in a more timely fashion because there are fewer people to both consult and have the final say. This makes it a much easier investment to both run and control.

With all these advantages, note that although many of the overseas investments are used to affect tax-planning schemes, they are sometimes manipulated and used to deviate payment of tax as well as encourage criminal acts like money laundering.

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