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The myth of the offshore, IBC and offshore company

2018-02-26

Many entrepreneurs believe in the myths of the offshore and this prevents them from opening an offshore business and IBC. These erroneous beliefs can cost them more.

If you were thinking about IBC company registration or an offshore company registration, you need to understand the myth of the offshore. Once you know what is really a myth, you can decide that it makes sense to re-arrange your enterprise in a jurisdiction that will help you achieve your goals.

The myth of the offshore company No1: offshore company is the instrument for illegal goals

IT-OFFSHORE specialists reference: Ofshore firms have great flexibility. They can participate in almost any business project that they can develop. But the legislation in the jurisdiction where the IBC can be opened does not allow them to commit acts that are regarded as crimes.

According to the jurisdiction legislation, IBC companies have privacy protection that does not allow the government or anyone to disclose your finances. But only if the government has no evidence that the firm is involved in illegal activities. If investigators have evidence, they can access detailed information about the company to make sure that they work only within the legal framework.

This means that ofshore firms can not participate in such matters as:
• Drugtrafficking
• Prostitutions
• Murderordering
• Racket

Thus, your IBC company gets the opportunity to make its business decisions without government intervention, but each state continues to be serious about illegal activities.

Myths about Offshore Company No2: offshore are not completely regulated

Based on our observations, some entrepreneurs believe that offshore corporations are not required to comply with any rules.

In fact, ofshore firms have more freedom than companies in countries such as Germany, France and Japan, but this does not mean that they evade all laws.

Ofshore jurisdiction requires that ofshore firms and I.B.C. adhere to specific laws. For example, if you are planning to open an IBC in Panama, you must have at least three directors. In each jurisdiction, the entrepreneur must submit the constituent documents before they can conduct business.

In addition, all this is not free, but it gives companies more opportunities to make business decisions without political interference. For example, companies in the US can not deal with Cuba, because the US has sanctions against this country. If you open an I.B.C. in Panama, then such restrictions will disappear.

Myth about Offshore Company No3: all ofshore companies are registered in corrupt jurisdictions

There are some corrupt jurisdictions that do their best to attract ofshore firms. However, these jurisdictions are not attractive for entrepreneurs.

IT-OFFSHORE specialists reference: Liberia tried to open financial offshore. But the problem was that no one was going to trust the African governments with their own money. The plan failed.

And in such jurisdictions, for example, Panama, the judicial system is based on the USA The jurisdiction has a system that prevents corruption. Panama is really punished for this kind of violation.

Offshore Company Myth No4: offshore companies never pay taxes

Business owners need to understand that each jurisdiction establishes its own tax legislation.

It makes sense to find ofshore states, which gives you a significant tax incentive. For example, offshore Panama pays a specific amount of the annual rate and this is no matter how much money your firm receives.

This gives two main advantages. First, it reduces the costs of your business. Secondly, it allows you to plan your annual expenses. When you know exactly how much money you need to pay to the ofshore state, you can allocate time to develop a plan to expand your I.B.C. to new markets or industries.

Offshore Company Myths No5: offshore companies are illegal

This is perhaps one of the most common myths, as this is what drives entrepreneurs, not allowing them to take advantage of the benefits provided by jurisdictions.

For you it is necessary to understand that ofshore firs are not illegal. In most countries you can start a business wherever you are. The opinion about illegality arose on the basis of a lack of understanding of the legislation.

The fact is that each country has its own tax laws. Some jurisdictions force business owners to disclose the company's annual turnover, some to pay taxes and so on. If you do not follow the law - the accusation of tax evasion and punishment begins.

It's all. Any questions? Please ask to IT-OFFSHORE professional specialists!