When you think about offshore companies, what comes to mind?
Usually, people think of some island in the ocean with palm trees, where you can set up a totally secret company that no one knows about. Your government has no idea what you’re doing and you can avoid paying any taxes.
In the past, you could do this. You could set up a company in an offshore jurisdiction and get a bank account that same day without ever being asked why you’re doing it.
These days, things have changed. If you try to open an offshore bank account, you’ll be met with questions about the beneficial owner and the purpose of the account.
However, offshore companies are still useful for other reasons. Richard Watson explains them in this video, filmed at the Platinum Mastermind in Kota Kinabalu, Malaysia.
TO SEPARATE PERSONAL AND BUSINESS
Some people will set up offshore companies to separate their personal and business affairs. If they put their assets in a jurisdiction that’s different to wherever they live, it puts them out of reach of the legal system.
This way, if your company gets sued, it will get sued in a different jurisdiction to where your personal assets are based.
Most people think of offshore companies as a way to hide your assets. It’s not about hiding anything, but simply about protecting what you’ve got.
TO HOLD OTHER COMPANIES
Another benefit of an offshore company is to get your name off the registry.
If your offshore company is the owner of the main companies through which you do business, its name will be on the registry instead of your own.
If you can add extra layers of privacy, why not? There’s no reason to have your name splattered everywhere if you don’t have to. This also protects you from legal threats.
TO GET INVESTORS
If you want to get investors for your company, you’ll increase the attractiveness of the investment by placing it in a jurisdiction that investors like to invest in.
For example, entrepreneurs who are doing business in the Philippines or Vietnam will often create a holding company in Hong Kong or Singapore, because investors are far more familiar with the legal system in those jurisdictions.
Also, Hong Kong is tax friendly, meaning that investors can keep their full profits in Hong Kong and only be taxed in their own jurisdiction.
The MOBE Platinum Mastermind is where the most experienced mentors in investing and asset protection share their investment methods with fellow members. To learn more about the Platinum Mastermind, click HERE.