The digital era is here with us. No matter your location, technology makes it easy to link, communicate, and do business from any corner of the globe. However, there are times when incorporating an offshore company is the best way to enjoy more benefits. The biggest question is how do you decide that it is time to incorporate the business abroad?
This is a comprehensive guide on deciding it is time to register an offshore business.
How do I decide to go offshore?
At this point, your question should actually be; is incorporating a company abroad important for me? Most businesses with top offshore companies enjoy the following benefits that you should also target.
- Ability to trade abroad and grow the target market: When you take a business abroad, a new market opens up. For example, if you incorporate a company in Hong Kong, the business will gain access not just to the Hong Kong Island, but also China and the entire Far East.
- Establishing a flexible base: Multinational businesses target areas that can enhance flexibility to do business. If your jurisdiction has very strict legislations especially on who trade with, it is advisable to look for an offshore jurisdiction to incorporate the company.
- Search for subtle tax regime: Many countries have highly punitive tax regimes. If you feel that your current country of operation is taking almost all your business profits, it is time to go offshore. Top business destinations such as Hong Kong have straightforward tax regimes and a lot of tax incentives that allow investors keep the bulk of the profit.
- Support for business especially at startup: If you have a great business idea especially in technology and finance sectors, the cost for a startup can be very high. Whether it is an app development enterprise or unique finance product, you can make a huge leap by identifying a jurisdiction that supports such enterprises. For example, Hong Kong has top programs such as the Innovation and Technology Fund, and the Cyberport Creative Micro Fund.
- Easy access to business financing: When you think of growing a business, the bottom line is resources availability. You need money to acquire office, hire and maintain staff, market the company, and meet every other financial obligation. By going offshore, you are sure of getting more financial options to fund various projects to facilitate faster growth.