It is no longer a secret – forming a company offshore is an excellent way to grow it into a multinational. Imagine an offshore jurisdiction such as Hong Kong or China and the huge market it will open for you in the entire Far East. This is the opportunity you need to utilize to take your business to the next level.
Even when the advantages for going offshore are clear, many investors still find themselves in a dilemma of making the big decision, “Is it the right time for going offshore?” Keep reading to learn why offshore company formation is your stepping stone for growth into a global brand.
Need to Grow Reach and Profit
Do you feel your company has vast potential, but it is not achieving it? If “yes,” it might be time to rethink your operation strategy and identify ways of growing reach. Taking your company offshore makes it easy for you to access and exploit new markets for more profits.
The good thing about investing offshore is that you do not just get access to that targeted market, but also the neighboring states. Take the example of Hong Kong. If you incorporate a company in Hong Kong, the jurisdiction provides an excellent opportunity to reach the neighboring markets. Furthermore, you can use the bilateral trade agreements signed by the targeted offshore jurisdiction to extend the market.
Support for Business
Does your government back home offer incentives for businesses to thrive? If it has a policy of optimizing taxes and does not offer any support for growth, this might be your opportunity to seek better environments. However, you need to start by identifying a suitable jurisdiction with the type of support that you desire. In China, as an example, the government has multiple methods of supporting businesses for growth, including:
- Companies that are located away from the coastal cities enjoy lower tax rates.
- Your business enjoys loads of incentives for operating in Free Trade Areas.
- Businesses within the encouraged areas of industries classification enjoy lower tax rates.
Apart from China, jurisdictions such as Hong Kong, Singapore, United Arab Emirates, and the UK, also have attractive incentives and advanced infrastructure, such as inland container depots (ICDs). Therefore, start by comparing these incentives and pick the jurisdiction where you can easily qualify for support or tax relief.
One method of ensuring your company thrives all the time and can easily rebound after a disaster is incorporating its offshore for asset protection. If you rely on just the home jurisdiction, something can happen, from a court order that freezes the assets with the strike of a pen to a disaster. Imagine a court case thrown your way by competitors back home, forcing you to spend a lot of money on attorneys but finally losing the case.
Several offshore companies imply that no matter the disaster or problem that might befall the enterprise back home, there will always be a way out. Note that courts back home do not have jurisdictions over businesses registered legally in foreign countries. This means you can comfortably protect business assets, from cash to physical assets, by registering them under your offshore companies.
As you can see, taking your company offshore comes with many benefits, and we have just listed a few. To take advantage of these benefits and grow your business into a multinational, consider working with an agency of experts for help with company registration and growth. You can never go wrong with a professional on your side!