Despite many people believing that establishing an overseas or offshore company indicates the intention of doing something illegal, that simply isn’t the case and many people find that forming overseas companies offers many advantages for their business interests. For example, if you were operating an online business, forming an overseas company may benefit you by providing exemption from a variety of tax laws, as well as reducing your personal financial and legal liability.
Another great benefit that many people have been quick to take advantage of with Swiss company formation is the opportunity to open an overseas bank account which opens up a world of possibilities regarding operating capital, accessing lower interests rates and banking fees, not to mention more investment and borrowing opportunities. Here are a few tips to help you make the right decisions about forming an overseas company to take advantage of a wealth of benefits.
Understand Whether Forming an Overseas Company Is Right for You
The first step is working out whether forming an overseas company is the right decision to make as many people find that it isn’t in their best interests to form a company in another country. If you know of anyone who’s established an offshore company, get in touch and ask they about their experiences and what they’d recommend for someone in your situation based on those experiences. What’s more, you’ll also need to consider:
- Your exit strategy – How do you get out if things don’t go as planned?
- Your partners – Who else will be involved and are they the right people?
- Company formation – Who will help you form the company?
These questions and many more need to be answered if you’re to decide whether forming an offshore company really is in your best interests. Bear in mind that for some people it isn’t suitable.
Work with the Right Advisor
The importance of working with the right financial and legal advisor when setting up an overseas company can’t be stressed enough as the right advisor is an invaluable source of information and can help you structure it properly to avoid any unnecessary problems arising in the future. Once again, if you know of anyone who’s set up an overseas company in the past, ask them if they can recommend a good advisor to assist you.
Choose the Right Jurisdiction
This is another reason why you need to be selective about the advisor you work with as there are some major decisions to make and you don’t want to make them on your own. Any country that you consider must have a reputation as an offshore financial centre, like Switzerland, Hong Kong or the Seychelles, all of which are popular choices as countries in which to form an offshore company.
There are many reasons why you may find it advantageous to establish an offshore company. However, if you’re to maximise the benefits of forming an overseas company, you must ensure it’s the right choice, find the right advisor to work with and choose the right jurisdiction.