Best Uses of an Offshore Corporation
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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? First and foremost many world economies are 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.
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. Profiting in Panama has become popular as the small
nation at the tail end of Central America grew 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,
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how taking a business offshore saves on overhead,
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reduces taxes,
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and can put your business closer to new and expanding
markets.
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Tell Me about Tax Havens
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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
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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 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
add a completely different factor to business productivity.
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Setting Up Shop Close to Your Suppliers and Your
Customers
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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
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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, 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
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Whether it is a debt ridden government that wants to tax
away your wealth
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or a litigious lawyer who want to have you pay for someone
else’s problems
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one of the best uses of an offshore corporation is
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to put you business where taxes a low or nonexistent and lawyers need to jump through many hoops to knock at your
door.
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Think of Flexibility
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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
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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
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