Offshore corporations can be used just like a domestic legal entity and conduct nearly any type of business. The benefits of incorporating offshore are limited liability from business transactions, financial privacy, lawsuit deterrence, asset protection and diversification through international investment opportunities. Offshore business entities also offer features that are not available in most states, such as the use of bearer shares.
Offshore business entities can be owned privately. The best offshore jurisdictions for forming a business have strict privacy laws whereby the officers or directors cannot be disclosed to any foreign government for anything short of money laundering, terrorism or a gross criminal act. For maximum privacy an individual can establish a new business entity and opt to have nominee officers and directors stand in so that their personal names never appear on any incorporation documents.
In order to sue an offshore business entity a legal initiative must be initiated in the foreign jurisdiction. One of the biggest deterrences for frivolous lawsuits are the additional effort and costs required to sue a company offshore.
Offshore Asset Protection extends a myriad of benefits to foreign investors seeking to shield their wealth from creditors, lawsuits, divorce and judgments.
For a plaintiff suing an offshore business the legal hurdle is extremely high, it’s expensive and there’s no guarantee that a judge will even see the case. Some of the most protective jurisdictions require bonds to be paid in order to have a case reviewed by a board that will decide if it will be allowed to proceed. On top of this, the case must be pursued using local legal counsel and cannot be on a contingency basis. This process nearly eliminates frivolous lawsuits and predatory legal battles. In order for a creditor to repatriate assets, a lawsuit must be won in the foreign country and action compelled by court orders from that jurisdiction.
With a privately owned business entity a new bank account can be established in the name of the business creating the most banking privacy one can achieve. In this case all financial transactions would be in the name of the offshore business.
One can combine strict privacy laws in one country for ownership of the business entity and a bank account in another for the world’s strongest financial security. Individuals can take advantage of multiple jurisdiction’s strengths in a single offshore service plan. Offshore banks typically offer better deposit interest rates and more investment opportunities.
When using an offshore business entity as part of a complete protection plan the company can be used as an instrument to transfer asset control in a time of legal duress. This allows the settlor of the plan to have hands-on control of the assets and day-to-day operations when times are good and in the event of a lawsuit or court orders be removed as the asset manager. When assets are controlled by an offshore manager foreign judgments are not recognized in the offshore jurisdiction so even a court order cannot compel a manager to turn over assets.
Offshore entities can be used the same as a domestic legal vehicle. In some cases this simplifies conducting business in multiple states and/or internationally with the additional privacy, protection and investment benefits foreign jurisdictions offer.