A lot has been said about Offshore Company Formation and especially company formation in Cyprus. We regularly cover the topics of assets protection, how to establish an Offshore Company in Cyprus and Offshore companies in other countries.
While we do our best to give you in depth and ongoing information about the growing phenomena of having an “offshore company” we also want to prepare you for starting your own offshore company so that you can experience the benefits of low tax rates, no tax rates, complete anonymity and total asset protection. Whether you are deciding to incorporate your offshore company in Cyprus or anywhere else in the world, there are a few things of great importance that we think you need to know.
It is a well known fact that offshore companies allow you to protect and hide your assets from creditors and other claimants, but many believe that the establishment of an offshore company is illegal or at least unethical. This could not be further from the truth. Operating your business through an offshore company is a legal way to reduce tax and gain a greater level of asset protection, it is a method used by thousands of wealthy people and it is most certainly not unethical. It makes sense to protect your assets from creditors and it makes sense to pay less tax so you can grow your business faster. Operating an offshore company is completely legal as long as you comply with local regulations in the jurisdiction your company is incorporated in.
Some people, who believe offshore companies are unethical, will argue that many people have misused these corporate vehicles to hide assets illegally from creditors and other claimants, such as spouses, heirs and tax authorities. The will also argue that
“ The obscurity provided by certain types of corporate vehicles can be exploited to conceal the existence or ownership of assets in order to keep them out of the reach of creditors and other claimants. In some bankruptcy cases involving individuals, for example, funds have been siphoned out of one jurisdiction through shelf companies and trusts incorporated in other jurisdictions where it was extremely difficult to trace beneficial ownership”
There are a variety of ways to use offshore companies illegally and unethically, but there are also ways to use local companies and bank accounts unethically also. It is unethical to hide your assets from people, creditors or claimants who are entitled to them.
However, despite their occasional misuse, offshore companies present business owners with a variety of benefits that will help them grow their company and their income quickly and protect their profits effectively.
I have seen some cases where a successful entrepreneur ran a company that was 100% legitimate. When the company was just starting the get off the ground he decided to take in partners, these partners were businessmen involved in large-scale business. The partners then cheated the entrepreneur out of…