Business owners prefer setting up an offshore company primarily to take advantage of tax-saving incentives, protecting assets during complicated legal troubles and safeguarding wealth from the consequences of political and economic instability.
An offshore company is defined as a business unit established outside the owner’s country of residence. Also, the specific definition of an offshore company differs by jurisdictions. These companies function just like any other company, have a similar type of management structures, issues shares to shareholders and so on. But the main difference lies in the tax structure and the level of confidentiality. Panama enjoys an exceptional legal climate, making this jurisdiction a popular destination for those who are looking to set up companies offshore.
The two main types of offshore company formations are International Business Company (IBC) and Limited Liability Company (LLC). Here we will discuss these two types in more details.
International Business Company (IBC)
An IBC refers to an offshore company that engages in international business activities in trade or investment and remains exempt to local corporate taxation, provided that its income does not come from local sources. If you are thinking of setting up an offshore account, think of an IBC formation. An International Business Company benefits from confidentiality of ownership, asset protection, flexible management arrangements, and financial reporting requirements.
Limited Liability Company (LLC)
A Limited Liability Company offers limited liability to its holders and partners. It is a hybrid business entity with a flexible arrangement, allowing power and tasks to be named and distributed through its charter. A member of this type of offshore company has the same responsibilities as a shareholder in a normal company that may include individuals, companies or trusts. It allows for flexible levels of ownership and remuneration. The flexibility of this type of office formation is ideal for structuring international orientated joint venture solutions. The company can enjoy all the benefits of incorporation without any tax liability.
A trusted service provider working in the field of offshore company formation and offshore merchant accounts can help you in setting up an International Business Corporation (IBC) and Limited Liability Corporation. Once you choose any one of them for your needs; they will provide you the assistance you need for company formation offshore. It is not that difficult to find a good service provider to help you. You can take help of online resources to help you with the entire process, from beginning till last.
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