OFFSHORE COMPANIES Jurisdictions | Shelf Lists

Types of Offshore Companies
The following types of offshore companies are recommended to structure international business and for tax planning:

Companies incorporated in tax havens (jurisdictions with virtually zero tax), such as the Seychelles, Cayman Islands or British Virgin Islands.

Companies with limited liability - Limited Liability Partnership (LLP). Due to the advantage of limited liability but the flow-through characteristics of a partnership for tax purposes, they are used for offshore business, international business and tax planning. If all the members or partners are non tax resident in the domicile of the LLP company and no business is undertaken in that country, there is possibility that neither the LLP nor the members or partners will be subject to tax in the company's country of establishment.

Companies incorporated in jurisdictions with favourable tax regimes, which offer both onshore and offshore companies. For example, when correctly structured, managed and administered, Singapore Companies can be utilised for undertaking offshore business and international business without paying tax in Singapore provided that any profits arising are not made in Singapore. This type of tax regulation is known as "territorial taxation".

Benefits of Offshore Companies

Taxation - business may be structured so that profits are managed in ways that minimize their overall tax liability.

Simplicity - some jurisdictions make it relatively simple to set up and maintain companies, other than regulated businesses (e.g. banks or other financial institutions).

Reporting - the level of information required by the registrar of companies varies from jurisdiction to jurisdiction.

Asset protection - organise assets and transactions in such a way that assets are shielded from future liabilities.

Anonymity - the identity of the underlying principal may be kept confidential, by carrying out transactions in the name of a private company. However, most banks and other professionals are required to properly look through structures and beneficial owners to be compliant to anti-money laundering and terrorism regulations.