Bowman Offshore Bank Transfers: Start an Offshore Company

For some companies, paying a low tax is better than paying no tax. First, low tax locations often
grant you more access to world-class banking, financial opportunities, and merchant services.
And paying small tax amounts can make the difference between your home country leaving you
alone and giving you a hard time. As the global war on tax havens heats up, setting up your
offshore corporation in a respected jurisdiction might be the best strategy for you. And in some
cases, it might not even cost you anymore.
Common countries for offshore corporations
Common traditional offshore jurisdictions include Nevis, Seychelles, Mauritius, the British
Virgin Islands, the Cayman Islands, Antigua, Anguilla, and even the Gambia in Africa.
Other low-tax jurisdictions popular for offshore companies include territories like Gibraltar, as
well as low-tax European countries like Ireland, Malta, and even “zero tax” Estonia.
In Asia, places like Hong Kong and Singapore offer the potential for zero or single-digit tax rates
for foreign business, as well as a network of global tax treaties.
Meanwhile, the Middle East is growing as an offshore hub, with Dubai and Bahrain offering
their services to those interested in that region.
Tax implications of offshore corporations
We’ve talked a lot about how a big part of forming an offshore company is trying to reduce taxes
or eliminate your tax burden entirely. In order to get the best legal results, you need to have the
right team in place to manage your business.
Having the right team in place to manage your business once it is set up does two important
things–It makes sure you are 1) in compliance and 2) making the most of all tax benefits.
Some higher-level offshore jurisdictions will require you to file annual accounts showing your
transaction history. These include places like Hong Kong, Singapore, Cyprus, Gibraltar, etc.
Many traditional offshore jurisdictions may require you to keep books on your own, but they
don’t require you to file them. Even if you don’t have to file reports or pay tax offshore, you
might be required to declare your interest in any offshore company to the country where you’re a
citizen or resident.
Forming an offshore corporation is about saving money and protecting assets legally, not hiding
away or evading taxes. You want to make sure you’re not only aware of all the rules and
regulations surrounding your home country and the jurisdiction of your offshore company, but
that you’re complying with these rules, too.
Offshore company requirements for US citizens
The US government has some tight restrictions on offshore companies.
As a US citizen, you’ll need to disclose any interest in an offshore corporation on your taxes each
year. The same goes for any offshore bank accounts you are an owner of or signer on, in most
cases.