WHAT IS AN OFFSHORE COMPANY?

The english term, offshore, in the british usage means "away from the coast". It's essence is the following: a company which in the country in which is registered, does not have any economic activities, so it is considered a foreign, based on these.

An offshore company it's a legal entity that has it's business set in country with advantages of low taxation and stable government currency control. These countries are often called as "Tax Haven".

The term tax heaven refers to those economically independent but politically dependent countries, which assure favourable conditions for registering offshore companies, such as:

• Reduce of taxes
• Minimal bureaucracy
• Extensive discretion
• Security
• Flexibility
• Developed infrastructure

How can be "tax-free" an offshore company?

The offshore companies are not "tax-free"! They have to pay taxes "at home" and in the country where they practice their real activities.

An offshore company will be "tax-free" only in a tax haven, not because it is offshore!

Is it legal?

In those countries where the registration of offshore companies is possible, this has a controlled jurisdiction: it is ruled by specific laws, it has it's own bibliography, precendents and representation. Nowadays it is considered a separate service.

This way, the offshore services are legal, transparent and secure for the clients.

It is clear that this is not a white "juridic spot", but a juridic form, regulated and recognized by the state, in some countries with hundred years of history.

The offshore is not tax evasion!

Altough laymen often consider it tax evasion or "money-laundering", an offshore company does not involve any illegal activities!

A company cannot be illegal, because an economic entity cannot commit a crime, only if the owner or the management is involved in illegal activities through the company.

An offshore company does not conceal any illegal activities, this way the person who commited it has to take responsability.

Thanks to the globalisation, there is a simplificated and fast information exchange between the authorities of several states, this way an external company it's not able to cover the illegalities, but it is able to function legal, transparent and calculable.