Fiscal Services Limited

Offshore Companies

The concept of a limited company is widely understood but, to clarify your understanding, a company is a separate legal entity and may engage in trade and enter into legally binding contracts in its own right. The liability of the company's shareholders is limited to the par value of the shares they hold.

Transferring the ownership of assets from an individual to a company may have considerable tax and other advantages.

For taxation purposes the management and control of a company is deemed to be the place where the majority of the directors reside and hold their meetings, but this residence of the company may be influenced by the place or places of business created by the company. For example, if the directors are resident in the United Kingdom then the company will certainly be subject to United Kingdom taxes. However, if the directors are resident in different countries the company will not incur a liability to profits tax on its world trading, but profits will only be subject to tax in the countries where it has a permanent place of business. The directors' meetings will either be held in a country that does not charge income tax or meetings may be spread over a number of countries. The offshore company may be owned directly by the Principal or alternatively through nominees.

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