Thread: What can I do with an offshore company?

You can do just about anything that you could do with a normal company. The only difference is that you pay no taxes and that you can remain anonymous to the public if you want to. Most people who set up offshore companies seem to open bank accounts, enter into contracts, do business, invest, hold assets, etc.

What offshore company do you have, Kitty? Harold is right but be sure to have an idea that can be noticed by people too if you are in the sales business. And offshore companies really don't have to pay taxes? Are they exempted? If that's true then I might start one company like that!

You as a person still have to pay taxes for any income you personally get, no matter where you get it. Why did you set up an offshore company if you didn't know what you would do with it?

Thank you all for replying. I mainly use the company to do deals on the internet, like buying stuff. I was told that a company can be used to remain anonymous and that's what caught my attention after having had my identity stolen on the internet (which sucks). I haven't set up any business yet but maybe I'll do so in the future.

Can someone tell your old Panama pal what exactly is an offshore company? How does one set such an account up?

When you guys are talking about an offshore company, are you talking about a company that is in a foreign country or are you talking about a company that is in no country at all.

Originally Posted by themark

When you guys are talking about an offshore company, are you talking about a company that is in a foreign country? Or are you talking about a company that is in no country at all?

No country at all? Where are you going to file your papers and wire your money? The Bermuda Triangle? Atlantis? A gigantic cruise dedicated to banking in international waters?

I respect that you are after some knowledge here, but please try and read any links posted to the previous notes--they have a tendency to contain all the necessary information.

For these purposes, 'offshore' refers to incorporating, banking, investing, etc. in a country that you don't currently live in/have citizenship in...

But, please, in the future, read the links...that's why they are there in the first place!

Cheers.

Originally Posted by Lalaguayaba

No country at all? Where are you going to file your papers and wire your money? The Bermuda Triangle? Atlantis? A gigantic cruise dedicated to banking in international waters?

That made me laugh out loud.

I always thought the term offshore was misleading, though. Especially since another foreign countries might be connected by land, rather than separated by seas.

I do not see a real need to have an offshore bank account unless you just want to stash your money for a while so the tax man cannot steal some of it. It is a very good way to keep savings without being taxed on it and it is always good to keep full anonymity on the Internet and having an offshore account really helps keep your money safe and keep yourself anonymous.

which banks can you recomend, where u can have a atm-card that u can use all around the world? How much does it cost to have a bankaccount in Panama, with or without a card, maybe with a internetaccount and so on?

Originally Posted by MonAmb

I do not see a real need to have an offshore bank account unless you just want to stash your money for a while so the tax man cannot steal some of it. It is a very good way to keep savings without being taxed on it and it is always good to keep full anonymity on the Internet and having an offshore account really helps keep your money safe and keep yourself anonymous.

Are there any risks involved in having an offshore company? Is there any ways you can lose your money like that?

Originally Posted by MonAmb

I do not see a real need to have an offshore bank account unless you just want to stash your money for a while so the tax man cannot steal some of it.

There is a huge difference between tax avoidance and tax evasion.
The former is quite legal and should be discussed and planned with an attorney/accountant combo; the latter is quite illegal and will get you a few years in a federal penitentiary. This quote was about offshore bank accounts not offshore corporations--but apparently treats them the same, as the company requires the bank account.
As an American citizen, any profit made from your investments, unless properly vehicle-ized, it subject to taxation. This includes interest, and capital gains made on sales of stocks, bonds, mutual funds, etc. The 'tax men' are not stealing it as such, they are just levying their legal responsibility to part a citizen from their profits. A well-structured offshore company, like a foundation, will enable one to profit legally, without relinquishing too much to the 'tax men.'

As for myself, I like the foreign-market access that such an account provides; if I were limited to using an American account with an American firm, I couldn't enjoy the ability to invest in several Asian markets and eastern European markets that do not trade publicly in the U.S. And with the fall in the dollar, I find it increasingly useful to work in Euros--having a value based in over a dozen countries is apparently a little more stable than being based on one country's currency.

It is a very good way to keep savings without being taxed on it and it is always good to keep full anonymity on the Internet and having an offshore account really helps keep your money safe and keep yourself anonymous.

As above, and previously stated by others--you will be taxed on profit taken as personal income if you are an American citizen. The anonymity is a sweet side to this type of investment. As far as keeping one's money safe--I'm sure lots of Argentines felt safe about their $$ until their country's economy collapsed, and all the banks with it; millionaires were crushed overnight, and lives were ruined due to the trust and reliance on one country's currency. Diversification amongst the world's stable currencies, instead of investment solely in one's homeland, sets a the stage for liquidity rather than poverty.

Cheers.

Due to globalization I personally feel that if you have all of your money in one country it is like having "all of your eggs in one basket". There is allot of good info in this thread, always check with an attorney

My point exactly--despite all the good jokes, an effective lawyer is necessary to a life well lived....

Cheers.

Keeping your money in more than one country and in more than one currency will help reduce your risk of losing it all.

Wow! Thanks for paraphrasing what Mr. Woohoo and I managed to say!
Yippee for clarification!

Cheers.

Any more updates on your offshore company, Kitty? It's been a few months since you originally posted this thread.

Panamanian corporations can be used for international trade, to settle trusts or foundations, to establish and own bank or brokerage accounts, or hold ownership of real estate or any other type of assets.
Rgds.

Yep

What can you do with an offshore company? You can hide your money from taxes. That's what!

There's a huge difference between tax evasion and tax avoidance; namely, the former is going to get one put in prison, and the latter will make sure one's retirement savings don't go to fund the gov't's next war.

But, to tentatively agree--sure, its a method to protect one's fund from undue taxation.

Cheers.

I would also agree that the main reason for people to set up an offshore company is to get away from paying taxes. If you are really interested in this topic you will find many articles online on this topic. I can recommend this general article on offshore companies and this one is a FAQ list on offshore outsourcing.
Enjoy!

Originally Posted by Kitty

Thank you all for replying. I mainly use the company to do deals on the internet, like buying stuff. I was told that a company can be used to remain anonymous and that's what caught my attention after having had my identity stolen on the internet (which sucks). I haven't set up any business yet but maybe I'll do so in the future.

well, I think if you would like to do business online, it is not bad for you to do international trade .
I am doing international trade for my company now, and it is good if you have a offshore company, and this kind of company can help you save your runing cost.
and what kind of business you can do ? I think that based on your funds status.

Almost anything but retail unless your have ALLOT of money.

Originally Posted by MRWOOHOO

Almost anything but retail unless your have ALLOT of money.

I think you are right,but I think he also can do some small service company,so he will not have to bear a lot of money when his business starting.

Anything service oriented is pretty open unless a certification is required and even then a good attorney can help. This is the country to start a business in, no problem.

I would like to setup a company here in Panama for IT development. However I would not personally be living here, rather the programmers would be Panamanian - My clients would be in Europe, North America etc... - Can I do this by setting up a company here and off-shore bank account so I can invoice clients from Panama globally and pay my programmers? The groundwork is done, my clients exist, I just want to get the ball rolling now in Panama...

Can I avoid 40K small biz visa with this as I wont live here?

Any input would be highly regarded...