With globalization upon us the modern sophisticated investor requires more than the use of domestic companies to achieve cutting edge advantages and opportunities conducive to maximizing profits, reducing taxes and protecting assets in a litigious environment. The corporate offshore vehicle is therefore commonly being used as a means of expanding one's vision and operating range.
Entrepreneurs are now constantly on the look out for new ways to profit.
It is therefore imperative to have a full understanding of how offshore companies can be utilized. Offshore Corporations are used outside of the place of original incorporation for myriad of activities including trade financing, profit upstreaming, holding assets, procurement of raw materials and tax minimization. Joint ventures often use offshore companies when the principals are from different countries and prefer to incorporate in a jurisdiction particularly favorable for low or zero taxation. Companies or individuals sometimes seek to isolate activities, assets or profits for tax, accounting or liability reasons. In some jurisdictions an offshore Company is recognized as an alien national and as such may confer a trade advantage or may help avoid a disadvantage.