Many businesses, especially large corporations, actively seek ways to help protect their assets and reduce costs so they can keep more of their profits for their shareholders or to reinvest in the company. One of the ways people can protect their companies is to form an offshore company. Here are five of the benefits that companies get from forming offshore companies in countries like Switzerland.
Minimize Tax Responsibilities
Businesses can legally form offshore companies to minimize their taxes and keep more of the money they earn from their business dealings. In the countries that act as tax havens for corporations, offshore companies usually enjoy low or no tax responsibilities, compared to the country in which they were established. However, since corporate taxes can be confusing and many countries are changing their laws to prevent companies from leaving their country of origin, you should consult a tax expert about making a move.
Fewer Administrative Obligations
There are often fewer administrative costs for companies that form offshore companies, and a company’s directors or officers have fewer responsibilities. In fact, it isn’t uncommon for accounting, secretarial work or other office duties to be performed in virtual offices. This helps companies save both time and money, plus they can move their businesses and get back to work right away.
Reduced Capital Requirements
In most countries that allow offshore companies to be set up, they often require less capital to be set aside for these businesses than the country of origin does. For a Switzerland offshore company, the minimum investment is CHF 100,000. Only CHF 50,000 needs to be paid in, and if the company is a limited liability corporation, then the minimum is only CHF 20,000. However, there are some countries that require no minimum capital investment at all.
Holding Company Formations
One type of offshore company that can be formed is a holding company, which can allow you to protect your company’s assets. Holding companies hold onto anything that will make them money, including intellectual property, currencies or real estate. If you have an international company, then forming an offshore corporation can help protect your company’s assets.
Even with extra measures being taken by countries to stop international crimes like terrorism and money laundering, most offshore companies can be set up quickly. Since businesses can be formed quickly, you can get back to business in a matter of days instead of months, which allows you to keep serving your clients with few disruptions. Since setting them up can be done quickly, this will help reduce set-up and maintenance costs for your business.
Switzerland is one among many jurisdictions that allow offshore companies to be formed. They offer tax incentives and reduced capital funding requirements, and formation companies can help businesses get started by finding them the services they need. If your business wants to reduce taxes and administrative costs, you should consult with a formation company to see if forming an offshore company is the right move for your business.