You have probably seen or thought about the top multinationals that post huge profits every year. Do you envy them? If you do, know that you can grow your enterprise to that level too, and the first step is to take it offshore. In this post, we will tell you the main advantages of expanding your business offshore.
Before we can look at the main advantages of taking your company offshore, let us take a deeper look at the term. An offshore company is any business opened in a jurisdiction other than the home country. This means that you will have a new branch abroad, or the enterprise will be entirely based in another country. Some of the most revered offshore jurisdictions include:
- British Virgin Island.
- Hong Kong.
- United Kingdom.
- United Arab Emirates.
Special Benefits of Opening Your Business Offshore
The primary benefit of opening a company offshore is that you get access to a larger market. Look, instead of only accessing the local market only, your business gets a larger market share even abroad. Here are other benefits of opening a business offshore:
- Asset Protection
Have you ever heard of a case where a local court, with the stroke of a pen, froze bank accounts and even ordered assets of companies sold? It can be so distressful. Now you have the ability to protect your assets by registering your company offshore because local courts do not have jurisdiction offshore.
- Low Taxes
If your taxes back home are galloping too much of your profits, it is time to cast your eyes further. The good thing is that you can get jurisdictions with awesomely low tax regimes. Depending on the jurisdiction you select, it might be possible to operate tax-free.
- The Possibility of Opening and Running a Business Without Travelling Abroad
Can you imagine opening a company offshore without travelling there? Well, it is possible. Some jurisdictions, such as Hong Kong, allow investors to register their companies without travelling there with the help of agencies. You only need to provide the agency with details, such as copies of the shareholders’ passports, proof of residence, and preferred business structure. Then, the agency will complete the registration process on your behalf.
If your business is in a niche, such as import-export, it might be possible to operate through an agency without your physical presence. See, you cut the cost of operations, optimize profits, and might even qualify for zero-tax. Make sure the selected jurisdiction has a good Inland Container Depot (ICD) to make handling the logistics easy and straightforward.
- A Good Way to Build Business Networks
Just like back home, the success that a business can achieve is partly dependent on the networks it builds. However, you will find these networks even more critical at the international level. Take the example of a company that deals with the supply of raw materials to manufacturing firms. In such a situation, you need to have the right networks to grow your business, which can be achieved by expanding offshore. If you open a company in a country that provides easy access to the neighboring markets, it might be possible to build extensive networks to accelerate growth within a very short time.
Taking your business offshore is perhaps the most important decision that can help to catapult your enterprise to global status. Make sure to select the offshore jurisdiction carefully to enjoy even more benefits. Also, working with experts can help you craft a good winning strategy in the new market.