When we hear Tax Haven for your offshore business, usually, the first information that comes to mind is related to illegality, an idea somewhat misguided. However, there are reasons for that, after all the news about such matters often involves large political and business scandals.
However, it is necessary to clarify that offshore companies are allowed and legally constituted, the difference is that they are located outside the territorial limit or the address of those who constituted it but are legal because they are registered under the laws of these countries.
In a tax haven the profits of an offshore company are usually tax free. Entrepreneurs resident in jurisdictions with high tax burden can use an offshore company free of local tax and accumulate profits abroad. Profits can be postponed in accordance with the laws of the country that the entrepreneur is resident (is essential to consult a qualified professional to make sure of it all), so the tax advantages can be obtained through investment. Retained earnings, therefore, can be substantial. Payments repatriated to the country of residence of the shareholders and/or directors are taxed according to the country of residence law. However, they can be structured to minimize their tax obligations.
One aspect often forgotten about offshore companies is the relative simplicity of the opening process. In many jurisdictions, the formation of an offshore company is a fast and non-bureaucratic process. Jurisdictions that are specialized on incorporation of offshore companies usually facilitate the process of formation of the company making it as simple as possible. Furthermore, the requirements for opening a business abroad are usually less complex than the opening of a local company. Good examples of this jurisdictions are Dubai (Ras al Khaimah) or even Marshall Islands among others.
The formation of an offshore company can take 5-15 days to be ready, upon receipt of all documents and forms! That is, you can get your business almost instantly. No loss of time, money or business opportunities. Everything happens quickly so you can proceed with your business plan immediately.
In addition, jurisdictions considered tax havens offer privacy and confidentiality of information. Typically, they are not legally obliged to provide the data of the directors, members and/or shareholders of a company to the public, adding privacy and confidentiality in their business.