Date post: | 21-Jan-2015 |
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SIX BEST WAYS TO SET UP AN OFFSHORE CORPORATION
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The Six Best Ways to Set Up an Offshore Corporation
Individuals and companies often decide to set up an operation outside of their nation of origin.
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Why do they do so and what are the best uses of an offshore corporation?
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First and foremost many world economies are growing
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growing while the European Union, Japan, Canada, and the United States are stagnant by comparison.
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Brazil is becoming the economic powerhouse of Latin America with stiff completion from Mexico.
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Russia has become the world’s largest oil and gas producer.
Profiting in Panama has become popular as the small nation at the tail end of Central America grew
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Its economy as fast as China’s during the first years of the century and never saw a recession.
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With all this growth around the world why limit a company’s business to regions of slow economic growth?
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Let’s take a look at the best uses of an offshore corporation, how taking a business offshore saves on overhead
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reduces taxes, and can put your
business closer to new and expanding markets.
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Tell Me about Tax Havens
Setting your business in a tax advantaged jurisdiction may be sufficient justification for going offshore and one of the best uses of an offshore corporation.
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Many nations do not deduct bank interest throughout the year.
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Many nations do not tax income that originates outside of the country.
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Many offshore locations are decidedly business friendly in their efforts to bring investment into the country.
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This attitude often results in significant tax breaks that last for years.
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Effective Nations in which to Do Business
It is possible to set up a company headquarters in one offshore location, buy products from others, and sell to third locations.
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In the age of the internet much of business can be handled at the click of a button while profits
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can be banked in a nation that does not tax profits gained outside of the country.
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Salaries can be a major cost of doing business as can benefits.
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Finding a nation where salaries are low and benefits such as health care are covered by the government can result in significant savings in doing business.
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Countries such as Panama are transportation hubs, which adds a completely different factor to business productivity.
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Setting Up Shop Close to Your Suppliers and Your
Customers
There is nothing like personal contact even in the internet world.
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When an important production facility is having problems management needs to be close enough to handle the problem.
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Having office operations offshore and close to suppliers, manufacturing facilities, and customer base can be very cost effective.
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Close to the Growth
Brazil is growing and Mexico is catching up.
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Russia is moving to exploit its natural resource base in on the Pacific.
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Little countries like Panama are outgrowing debt ridden Europe.
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One of the best uses of an offshore corporation is to be where the economic action is,
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to meet the people, deal with the problems, and gain customers in the new economic powers of the world.
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Avoid Being a Target
Whether it is a debt ridden government that wants to tax away your wealth or a litigious lawyer who want to have you pay
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for someone else’s problems one of the best uses of an offshore corporation is to put you business where taxes a low or nonexistent
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and lawyers need to jump through many hoops to knock at your door.
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Think of Flexibility
Doing Business where there is less red tape leads to profits.
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Doing business in a nation that wants you to be there is a great thing.
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Doing business where what you think about is how to grow you business instead of deal with government regulations makes you flexible and profitable.
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For more insight and useful information about the best uses of an offshore corporation, visit www.RobertGirga.com.
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