Offshore companies are known by the general public for their tax friendly nature. Taxation, however, is just a small part of the benefits international business corporations set up in offshore financial centers can bring. Qualifying business activities, companies and their owners may also see advantages in the international allure, relaxed administrative and regulatory rules, and the access to both local as well as international financial centers to conclude activities.
The main advantage to incorporate offshore is the fast company formation. Offshore company services are straightforward and compared with most of the traditional jurisdictions cost-efficient. There are several offshore jurisdictions that compete with each other to get foreigners to incorporate offshore in their country. What started as a way to influence foreign direct investment became an industry in itself. The local economy in offshore financial centers often relies on a mixture of export of local products, tourism and the services industry. Government backed corporate registries and local agents provide for a substantial local workforce. As such, the offshore financial industry makes provision for employment and economic growth.
Your choice for the best offshore jurisdiction to start a company depends on your personal situation and home country and the planned activities of your venture. Alongside the indicated corporate residency for business activities, it may be considered to also look into alternative personal residency. The main reason for this double alternative residency is that home countries do not always like beneficial ownership of offshore financial holdings and segregated private property and assets.