Must offshore companies are incorporated to take advantage of these following features:
- Taxation – Tax planning purposes: Companies that do not trade within the jurisdiction they were created have to pay a minimum of taxes, like annual and license fees.
- Confidentiality: This advantage is very important, due to security purposes. Doing transactions in the name of a company instead of an individual, will keep the identity of the principal out of any documentation and unrevealed.
- Fees: some jurisdiction have lower incorporation and annual fees than others.
- Cost operation: in terms of expenses, in general it could be cheaper to incorporate a company offshore, i.e. an offshore financial center, than renting an office, hiring staff, etc.
- Legal protection: In general it is easier for an offshore company to protect itself, from lawsuits, disclosure of assets, etc. Since the laws that prevail over it are the ones of its own jurisdiction, not the place where the company carries out business.
