Offshore companies can be used for different purposes, and their advantages can be combined. Typical usage examples are the following:
1) International trade
- International trade in goods is an increasingly popular reason for using offshore companies and their structures for the management of logistics, which significantly benefits from the possibilities of tax optimization, even in use of tax-free zones
- A typical example is the involvement of offshore companies between suppliers and consumers of goods and the transfer of some of the profits to such a company
2) Holding companies
- Possibility of reducing the tax burden due to a holding formation, while centralising profits into the parent company which has its registered office located in one of the offshore destinations, ranks among one of the decisive advantages - typically the most frequently used jurisdictions are of Netherland‘s (the avoidance of taxation of dividends and capital flows) or of countries like the USA and the Seychelles (full advantage of offshore tax optimization)
3) Intellectual property rights
- Use, possession and sale of copyright licenses, know-how, patents, trademarks and other intangible assets
4) Anonymity of property
- An offshore company combined with the service of nominee directors is ideal for the purpose of making the owner of a business or property anonymous – it will ensure your full anonymity of ownership, while simultaneously maintaining your full control over your assets - similar solutions are mostly used in the Anglo-American world, when, for example in London, where there is about 70% of real estate held by offshore companies – this way of assets administration is known as trust
5) Provision of services
- Economic and business consultancy, agency and brokerage activities, negotiations with business partners, education and training, online presentations, database management and data warehousing, legal services, etc. belong to the most frequent services provided by offshore companies
6) Investments in securities
- You can easily minimize the tax consequences arising from profits achieved in trading shares or other securities when using offshore jurisdictions – this is often widely used even by small investors
7) International financing
- Provision of loans and lendings through some offshore companies and jurisdictions prevents from taxation of interest on those loans and thus leads to a higher profit of the loan provider
8) Trading receivables
- This specific business is tailor-made for a utilization of offshore structures; a dealer buys these claims typically from banks (outstanding loans and mortgages) for the purpose of their final resale or enforcement. Trading receivables through an offshore company can significantly reduce the tax burden on companies owing to a lower withholding tax
9) Business without the necessity of a share capital
- Our law allows to conduct business for both Czech and foreign companies
- By contrast to Czech ones, the offshore companies have fully redeemed their low share capital already at the moment of establishment, the typical capital is $ 100 divided into 100 shares at 1 dollar. Such a share setup allows for an easy distribution of a company and the possibility of participation of additional partners
- Offshore company can easily set up a branch office in the CR with company‘s ID number using a provided registered office‘s address. Such a branch office acts through its Head, which we can also provide at your request. The branch office behaves just like a Czech company, you can apply for the VAT registration, you may have your staff while maintaing most of your tax advantages pursuant to your domicile legislation.
For more information, please read the section about our services for offshore companies.
