Offshore Companies & Foundations
Offshore Companies & Foundations
Publisher Optimum Investments AG F端rst Franz Josef Strasse 5 Postbox 478 9490 Vaduz Principality of Liechtenstein Tel: +423 263 68 68 Fax: +423 263 68 69 E-Mail: info@optimuminvestments.li
Overview Offshore Companies 04 05 06 07 08 09 10
Introduction – What is offshore? Advantages of Offshore Companies Offshore – for whom? Conditions for Offshore Companies Offshore center “BVI” Offshore center “Panama” Offshore center “Liechtenstein”
Foundations 14 Offshore Company vs. Foundation 15 What is a Foundation 16 Advantages of a Foundation
Optimum Investments 19 Our services 20 Disclaimer
Offshore Companies Introduction – What is offshore?
Save on taxes by legally moving your assets to a country which offers offshore services i.e. no tax treaties with your country of residence or with most other countries.
Client
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Founder of offshore company Asset management
Offshore Company
Principality of Liechtenstein
Bahamas
Panama
BVI
Offshore structure
Offshore companies have several advantages:
à Flat
Offshore Companies
Advantages of Offshore Companies
rate tax tax exemption à Anonymity à No taxation on any kind of income à No reporting requirements à Highest level of privacy protection à Legal
Offshore – for whom?
Two reasons for going offshore à For
business purposes - Cheaper wages - Cheaper fabrication à Saving taxes
Example of offices that go offshore à Shares
and foreign exchange management à Property management à Provision of service à Asset
Conditions for Offshore Companies
à Valid
business address à Office à Phoneline à Postbox
Offshore Companies
Even if you don’t plan to actually operate a business in the offshore country, you must still have the following there:
Offshore center “BVI”
The British Virgin Islands have a number of unique attributes that make them a great asset protection jurisdiction for corporations and foundations.
Advantages à No
taxes on offshore derived income à No reporting à No currency devaluation à US Dollar currency à Stable country à Neutral country à Well established banks
Disadvantages à Registered à Minimum
shares one member of the board has to be from BVI
Offshore center “Panama”
Advantages à No
taxes on offshore derived income reporting à No accounting à No auditing à Currency devaluation risk corresponds to US à US Dollar currency à Stable country à Well established banks à Bearer shares à Accounts can be opened in any place of the world with any bank à No directors of the company have to be from Panama à No
Offshore Companies
As well as the BVI, Panama also offers a number of unique attributes that make this a great offshore country.
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Advantages
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à Politically
Offshore Companies
Offshore center “Liechtenstein”
stable well situated à Infrastructure à Stable Currency à Legal system à Associated with EC without being a Member à Geographically
Politically stable The Liechtenstein jurisdiction is free of social or racial tensions and is enjoying a history of a well supported, democratic government. Laws and juridicial system similar – but independent – of Switzerland. Geographically well situated Not only is Liechtenstein itself a stable country, all neighbouring countries such as Switzerland’s and Austria’s stability are also in no way threatened. Travel distance to Switzerland (Zurich) are 45 minutes. Infrastructure A sophisticated banking/finance, legal and administrative infrastructure is in place.
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Stable Currency Liechtenstein is the only country which has a monetary union with Switzerland and its currency is still backed by Gold. The Swiss Franc is the most stable currency in the world. Legal system The rule of law and the belief in a democratic, humane, equalitarian and liberal society is deeply entrenched in the Liechtenstein mentality. Liechtenstein earned a reputation as a country whose authorities – government and courts – defend their legal system against any attempts of foreign authorities to get information about Liechtenstein Corporations and/or its clients.
Liechtenstein Entity
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à Secrecy
Offshore Companies
à Investor
anonymity à Minimum Regulation of Commercial and Financial Transactions à Asset Protection Secrecy Confidentiality is one of the main essences in this tax haven, most of all bank secrecy laws. Investor anonymity The absolute political independence and the historical as well as constitutionally entrenched neutrality of the Swiss-Liechtenstein constellation ensure that absolute investor anonymity can be absolutely guaranteed. Minimal Regulation of Commercial and Financial Transactions Business can only be effected efficiently if it is subject to minimal official supervision with regards to authorization and regulation. Asset Protection The ultimate ownership of the Liechtenstein Company will never be disclosed to any authority. Legal assistance is only granted in criminal matters.
Foundations Offshore Company vs. Foundation 14
Save Taxes Offshore Company
Asset Protection
Foundation
Inheritance Regulation Strong flexibility Confidentiality Certain flexibility Engage in Business
Foundation with underlying Offshore Company
Advantages of a Foundation
What is a Foundation 15 Foundations
A foundation is one of the chief vehicles being used worldwide, in financial planning, for settling the succession to private assets. During ones lifetime one has full control over ones assets.
Founder
Dedicate assets
Confirms intention
Defines use
Collator Board of Directors Protector
Foundation
Structure of a Foundation
Benificiary
Advantages of a Foundation
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Save Taxes The founder can transfer all his assets to an underlying company which belongs to the foundation and legally declare he does not own them. Asset Protection From a legal point of view the money belongs to the foundation, therefore assets are protected from 3rd party claims. Inheritance Regulation The founder has to define the use of the foundations assets (e.g. social purpose, inheritance etc.). Limited Rules Liechtenstein law enables a flexible use of the foundation. Confidentiality The founders name is not registered. Only board members know the founders name. The founder chooses the members. One member has to be a liechtenstein resident. Flexibility In order to maximize your investment possibilities, one can establish an offshore company where the assets are flexible but still protected through the overlying foundation. The foundation still regulates the inheritance.
Foundation with underlying Offshore Company To take advantage of all these possibilities the establishment of a liechtenstein foundation with an underlying company is the ideal vehicle.
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Engage in Business In order to place or remove assets the establishment of an offshore company enables the board of directors to be bypassed.
Optimum Investments
What we offer you
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à Consultancy
Optimum Investments
Our services
in offshore-company law of different countries and administration of offshore companies à Formation and administration of Liechtenstein Foundations à Asset management à Acting as nominee directorships in offshore companies à Carrying out statutory amendments during lifetime of the vehicles à Formation
Disclaimer
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Please note Optimum Investments AG does not provide legal or tax advice and this presentation does not constitute such advice. We strongly recommend to all persons considering the products or services described in this presentation to obtain appropriate independent legal, tax and other professional advice. This presentation is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any product or other specific service. Although all pieces of information and opinions expressed in this presentation were obtained from sources believed to be reliable and in good faith, neither representation nor warranty, express or implied, is made as to its accuracy or completeness. The general explanations included in this presentation cannot address your personal investment objectives, your financial situation as well as your financial needs. Certain products and services are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis. All information and opinions as well as any prices indicated are subject to change without notice. Approved and issued by Optimum Investments AG, this presentation may not be reproduced or copies circulated without prior authority of Optimum Investments AG. Vaduz, October 2007
Optimum Investments AG, F端rst Franz Josef Strasse 5, FL-9490 Vaduz, www.optimuminvestments.li