Typical uses of British Virgin Island Offshore Company might be put into the following categories:
For Investment Purposes:
Individuals make common use of offshore companies to hold their investments (shares, stocks, bonds, cash, etc). Personal holding companies provide a better return on your investment and give you more privacy. Besides, there is no income tax on interest earned or capital gains tax to pay on the disposal of an investment in the country of the offshore company.
For example, Dominica and Seychelles offshore IBC's are the perfect vehicles for a UK property acquisition by a UK non-resident. The main reasons are the attractive buoyant property market and stability of the British economy. Besides, UK offers a very favourable tax treatment in respect of non-residents and non-UK domiciles.
The use of an offshore IBC as a purchasing entity (which name will be on the HM Land Registry) avoids imposition of inheritance tax if you do not domicile in the UK . Another important incentive for UK property investment is the exemption from UK capital gains tax (CGT), providing that the company is not trading or controlled in the UK . You have to bear in mind that, rental income will be subject to UK income tax.
Another point to mention is UK stamp duty, which is always levied on the sale of land and building. Assuming that you are non-resident in the UK and the property is registered in an offshore IBC's name, the payment of stamp duty could be avoided. Under Dominica and Seychelles laws you can sell the entire issued share capital of the offshore IBC to the purchaser - no stamp duty or any other tax or levy will be payable on the above transfer. And what is most important -your confidentiality is preserved.
The UK is just an example, offshore IBCs from Dominica and Seychelles can be used with the same advantages for European and Americans to invest in highly attractive Caribbean property.
For Assets Protection:
The advantage of buying and holding assets through an offshore IBC might safeguard against possible litigation, unwanted creditors, former spouses, etc. with british virgin island offshore company.
For E-Commerce :
By organizing your e-commerce business through an offshore company you will be more price competitive as you will not impose VAT or sales tax on your customers. And all your profits will be also tax free (no corporation/income taxes).
For Inheritance Planning :
Expatriates will find that the transfer of wealth to an offshore company will avoid undesirable consequences (e.g. time delays with probate, inheritance tax, and saves on legal fees) for their wealth when they die.
For International Trading :
For import/export operations it is possible to incorporate an offshore company which would deal with the suppliers/customers directly. The goods will be dispatched from the manufacturer or place of purchase. The profits arising on the difference between purchase and sales price will remain offshore and will be tax free.
Factoring trading debts of a company in the high-tax jurisdiction through a company established in a low tax offshore jurisdiction may assist in transferring funds into the offshore jurisdiction.
For ownership of real property and land:
The advantages of using an offshore holding company include avoidance of capital gains tax, inheritance tax, ease of the property transfer as well as the advantageous (reduced) property sale to the next owner.
Offshore IBC ownership of intellectual property (royalties, copyright, patents, franchise, etc)
British Virgin Island Offshore Company can be assigned all the rights to intellectual property and then the offshore IBC can enter into a selling agreement for such rights worldwide. The income will be accumulated offshore. There are no withholding taxes on dividends.
For Professional Services with British Virgin Island Offshore Company:
Individuals who provide professional services could sign an agreement with an offshore company to receive their remuneration fees. The employment agency could reinvest, on the clients behalf, the profits in a tax efficient way. Payments to individuals can also be arranged to minimize their tax.
... And many more
he use of an offshore company is not limited to the examples above. |