Offshore Company Services Offshore Company Services

Offshore company services include a variety of company formation and support services for offshore...

Offshore Countries for Offshore Holding Offshore Countries for Offshore Holding

To register or form an offshore holding in a given location, various conditions should exist to...

Offshore Holding Company Offshore Holding Company

An offshore holding company can be a firm or company that owns shares in other companies. These...

Offshore Countries for Offshore Holding

To register or form an offshore holding in a given location, various conditions should exist to ensure that an offshore holding achieves its goals. Offshore countries for offshore holding companies are often pinpointed as among the best locations because of their fiscal treatment of offshore companies and facilities that may be available for pursuing business offshore.

It is always important to identify or distinguish one offshore country for offshore holding from another, since some locations are fully fledged tax havens while others are low tax countries. Others may not be low or zero tax offshore countries for offshore holding but may have special mechanisms and legislation in place just for holding activity.

Given the nature of an offshore holding, it is necessary that the jurisdiction in which the company is based and incorporated provides a series of tax exemptions, incentives and grants. Because an offshore holding owns the shares of its subsidiaries, which pay out all profits, dividends and interests to the offshore holding, it is important that the offshore holding is located in a jurisdiction where these types of income are not heavily taxed or enjoy a tax free status. To achieve this, offshore countries for offshore holding where dividends, profits and interests are not subject to withholding taxes are considered the best for registering offshore holding companies. Not only does this strengthen the financial standing of the subsidiaries, but of the holding as well, which becomes effectively capable of reducing its tax burden while maximizing profits.

As explained earlier, some locations are not tax havens but can be considered ideal offshore countries for offshore holding. This arises in countries with a very large treaty network and is therefore capable of enabling offshore companies to operate with added advantage. Such an offshore country for offshore holding creates the possibility of being exempted from withholding tax for funds remitted to the signatory countries of a tax treaty, and to be obtain preferential treatment for certain transactions or production processes, as may be the case. An offshore country for offshore holding with a significant number or anti- double tax treaties further increases the benefits of offshore holding by creating an effective shelter against taxes. Consequently, offshore holding registered in an ideal offshore country for offshore holding while operating subsidiaries in countries with anti-double tax treaties and tax incentives can considerably reduce tax liabilities and encourage operating at lower costs.

Other factors that determine the suitability of offshore countries for offshore holding include closer and quicker access to raw materials, human and capital resources, technical skills and know-how, developed infrastructure for roads and transportation. These factors would determine how effectively an offshore subsidiary or holding operates in addition to having the right fiscal system in place. Offshore countries for offshore holding

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