Offshore Investing

One way to diversify your investment portfolio and potentially see bigger returns on your investments is to invest offshore. When choosing to invest offshore you are gaining access to untapped and potentially lucrative markets in countries that many investors would not even consider investing in.

There are a number of directions to go when considering investing offshore. However one of the most popular methods for investing offshore is through incorporating a company in an offshore jurisdiction. Incorporating an offshore company has two primary advantages; it can provide security for your assets and can help to minimize the taxation on your assets.

Incorporating an offshore company in the right jurisdiction can effectively protect both your investments and assets. By placing your resources in a legal entity such as an offshore company you benefit from the inherent protection of both domestic and international laws. Another option for safeguarding your assets through offshore investment is to establish a trust or foundation.

Forming an offshore company is a legitimate strategy for improving tax efficiency. Depending on the jurisdiction, one can benefit from both lower tax rates and double tax treaties between the offshore jurisdiction and your country of residence. With double tax treaties you avoid duplicate tax on global income. Converse to what many people think, investing your assets offshore is not necessarily tax evasion, but is a simple matter of legally capitalizing on well-established jurisdictions that provide favorable tax rates and laws.

Entrepreneurs who invest offshore should also consider offshore banking. Offshore banking makes the process of incorporating and running an offshore company easier and more efficient. Banking offshore provides greater protection of one’s assets and investments, along with operational efficiency from the improved ability to manage transfer of funds for your international business. Two jurisdictions that are internationally regarded as respected financial hubs, are Singapore and Hong Kong.

Investing offshore may be viewed with suspicion due to the fact

offshore companies and bank accounts are sometimes associated with

criminal activities, such as money laundering. Many entrepreneurs are

rightfully wary of the stereotyped term of ‘tax haven’. Building brand

reputation and perceptions of customers and investors is an important

aspect of running a successful business. This stigmatization can be shed

by carefully choosing the right jurisdiction and correct planning

before undertaking offshore incorporation.

Whether you are incorporating a company or opening a bank account,

both Singapore and Hong Kong are well-regarded locations for offshore

investing. Both countries don’t carry any negative stigma, provide low

corporate tax rates and give access to a number of double tax treaties.

In addition, Singapore and Hong Kong are supported by well-developed

infrastructure, along with governments that provide many incentives for

entrepreneurs wishing to set up in these jurisdictions. As a result,

both jurisdictions perform well in international business surveys as two

of the easiest places in the world to set up and operate a business.

Article Source: http://www.articlesbase.com/investing-articles/offshore-investing-2840303.html

About the Author

Healy Consultants is a leading corporate services firm that assists

entrepreneurs with offshore investing. The firm provides a range of

corporate services to assist entrepreneurs with setting up their

company, including offshore company formation and corporate bank account opening. More information on company formation can be found by visiting www.healyconsultants.com.