General Knowledge About Offshore Companies


How popular are offshore companies – will I stand out from the crowd?


Here comes another myth. Tax havens and offshore companies have been around for many decades. There are millions of offshore corporations incorporated and operating worldwide. Virtually all big, brand-name transnational corporations would have a few offshore structures tucked up their sleeve. In this time and age, it's actually a necessity: registering offshore decreases Your overhead (on tax and management costs), therefore You become more competitive. True for big corporations and startups, alike. So – it's big. Some estimates say that more than half of all volume of money, worldwide (just imagine how much it is!), actually reside in offshore accounts at any given moment in time. All international trade in commodities, goods and services is predominantly transacted through low-tax or zero-tax corporations. Many of the most competitive investment funds are registered in tax havens, so they are not burneded with excessive tax and can return more to their investors. A multitude of offshore holding companies help businesses invest abroad with minimum witholding tax loss. Much of the global e-business resides offshore. The list can go and on. In understanding this trend, it helps to think of money like a water – it will always flow from high (tax and burden) to low, and it will always find it's way through!