Jan 25, 2020

What is the difference between offshore and onshore companies in 2020?

An offshore company can meet your needs to enter the international business arena. If you are doing some kind of international and / or cross-border business, chances are high that you will need an offshore company. As long as you are not a resident of the country where you established the company, that company will be considered an offshore company. As for an onshore company, it represents the process of moving the business operation from overseas to the local country.

Offshore company 

An offshore company is a company legally established abroad in a country that offers some kind of economic, business or life advantages over their own country. For entrepreneurs, an offshore company is often a legal solution to protect funds and personal properties.

There are several types of offshore companies:

IBC stands for International Business Company or International Business Corporation and denotes a type of offshore company established in an offshore state. 

A corporation simply means joint stock company. It consists of owners, shareholders, who through the ownership of shares make their profits from the company and its directors and other authorized persons. A joint stock company provides shareholders and its directors with limited liability. See the definition of limited liability.

LLC stands for Limited Liability Company. The LLC provides its members and its managers with limited liability.

An American LLC can be used similarly to an offshore company if there is only one owner who earns sources of income exclusively outside the USA.

Example: You live in France, and open an offshore corporate account and company in Belize. 

Onshore company 

An Onshore company is a company registered in the home country of the resident who founded it. It has the purpose of doing business within that jurisdiction. If it is not an option for someone to set up an offshore company, you can decide to rent out your services to companies located in your home country. There is a possibility that setting up an onshore company will be more expensive than setting up an offshore company, but the advantage is that you work with local workers. This means that there are no language barriers in doing business, nor cultural differences that employers face.

The advantage of onshore accounts is proximity, in terms of employment. It is much easier to hire people close to your work and oversee projects. Also, an onshore company means that the same regulations and rules apply to everyone. For this reason, it is easy to determine whether an onshore company complies with the regulations of the country in which it is registered.

What are the benefits of opening an offshore company?

An offshore company can be founded by almost anyone, even if it is engaged in high-risk business. A client who wants to start an offshore company can do so from the comfort of his home. In addition to the offshore company, an offshore corporate bank account is also opened, which can be managed online. The most important thing is that the client tells us all the information about his business, so that we can propose the right jurisdiction and facilitate the process of founding the company. Offshore companies typically help clients legally reduce taxes, so in some way help you save money which you would not be able to save in your home country. Also, one of the biggest advantages is that most offshore companies are protected, and owners/shareholder are not visible to the public.

Is opening an offshore company legal?

This is a question we face the most and the question that people have the biggest doubts about.  The answer is a big and loud YES, it is 100% legal and safe.  Any individual may and is able to open an offshore bank account that can be used for business and private purposes.

Offshore Pro Group has been in the financial consultancy business for years and we will gladly help you find the best financial solutions if you decide to seek our advice. Please write to us to [email protected] or use WhatsApp or our live chat to get in touch with us. Whatever communication means you choose, we will be able to suggest the solution that will fit your personal outlooks and your individual investment preferences best!