Offshore zones, or how to protect your business effectively
It is not a secret that the new millennium has become an era of information. Capabilities of a person, who possesses information, are practically unlimited. Under such conditions, it is quite difficult to maintain secrecy of information about entrepreneurial activities and personal life. Moreover, even a banking secrecy has lost its traditional meaning and is mostly treated as a formality. However, there is always a tool to protect your business and financial assets in terms of information privacy – it is an offshore jurisdiction.
The use of offshore jurisdictions in international business structures provides secrecy of information about business owners and their financial state. Third parties will have no access to information about where and how much you invest, as well as where and in what banks do you keep your financial assets.
Offshore zones and safeguarding of private assets
Almost every businessman and entrepreneur is concerned on the main issue of how to protect his assets and minimize the existing risks adequately. The experts identify two key moments among the main methods of ensuring an adequate protection,:
- Limitation and suppression of information outflow concerning the business;
- Minimizing attention from the regulatory fiscal authorities and interested parties.
It should be noted that the modern person, and even more the successful entrepreneur, are always under observation, and a lot of details concerning our financial condition are available for society and become known to a wider public. As to the offshore jurisdictions, it is quite difficult to obtain information on the final beneficiaries or recipients of benefits. Such information is mostly disclosed only by the decision of the appropriate judicial authority, and is inaccessible to the third parties.
The level of confidentiality in the offshore jurisdictions
Unfortunately, under the current market conditions, even the ordinary marketing researches conducted by different companies can cause the leakage of valuable insights and information. Such companies, in order to increase profits, usually introduce new systems and programs that enable collecting the maximum of information about the potential clients. Marketing companies, when collecting diverse information, for example, information on your investments, financial opportunities, etc., pursue the same goal – increase in sales.
However, this does not preclude that such information cannot be used by swindlers. Such information can fall into the hands of your opponents, and become a source for blackmail. Do not forget also about the competing companies. In this situation, the only effective way to protect financial assets is to move them into a foreign jurisdiction.
The global Internet is considered today as the main factor of reducing the level of privacy. Today, almost every user, who is familiar with the basics of programming, can obtain the necessary information. For such a user it is not difficult to obtain information about the pages and sites you visit. Your conversations and online communication also run the risk of becoming available to the public. It is important to understand that even when making an ordinary purchase in the online stores, you have to leave your personal and biographical data, which can be subsequently used by criminals for criminal purposes.
Judicial proceedings and adversary justice
There is always a risk of being involved in prolonged and financially ruinous litigations. Legal claims is one of the most prevalent real threats that may cause huge financial expenditures and in some situations even the total bankruptcy and business interruption.
As a rule, the material damage claim is paid during the judicial investigation and proceeding. Such compensation can be expressed in the following forms:
- Freeze of the financial and other assets kept in banking institutions;
- Imposition of encumbrances on movable and immovable property of the defendant;
- Prohibiting the defendant to perform certain actions, including alienation of property, etc.
That is why wise and shrewd businesses have to take measures for the protection of the available assets by all available means. They most often have to move all their assets abroad, to the so-called offshore havens. An offshore jurisdiction, in addition to the effective protection of the assets, provides businesses with other benefits. For example, these can be customs privileges or a relatively loyal tax regime. Yet, the main advantage of the offshore jurisdictions, which attracts entrepreneurs from all over the world, is the confidentiality of information about business and its protection at the legislative level.
In conclusion, we would like to single out several objective reasons why do entrepreneurs and businessmen choose offshore jurisdictions as a tool for asset protection:
- Preferential treatment of the corporate and income taxation that enables increase of business profitability by reducing tax payments;
- Possibility to optimize the taxable base on the international level through bilateral agreements;
- Significant reduction of the administrative and organizational expenses on the supporting and maintenance of business;
- Possibility of entering the global market and exploring new markets, as well as finding new business partners and attracting potential investors to the business;
- Safety and secrecy of information about business owners and ultimate beneficiaries, which is guaranteed at the legislative level;
- Customs privileges for importing special and professional equipment, facilities and vehicles into the territory of jurisdiction;
- Total absence of restrictions on the movement of the assets and freedom in distribution of the gained profits;
- Simplified system of financial reporting and no currency exchange regulation and fiscal control from the state;
- Great prospects for business development and protection of the private property.
Each offshore jurisdiction has its own features and certain advantages. When choosing an appropriate offshore zone, it is overhead all necessary to pay attention to the requirements and strategic goals of your business. If you think over bringing your business up to the international level and about providing your own assets with the decent level of protection for a long time, you will get an opportunity to get a free consultation right now.