Offshore structures and international offshore companies and offshore banking services are used by international businessmen and companies which like to gain more economic benefits and business freedom. There exist no unviersal most favorable solution for economic advantages for everyone. The optimum offshore structure and offshore business solution depends of the situation of the businessman and shall be determined prior to formation of such structure. Offshore strategy gives the businessman realistic economic advantages and keeps him safe and protected as long as care is taken to keep the following offshore business principles: -Don't do anything illegal! The main offshore business principle is not to do anything illegal. The reason for offshore business is usually the endeavor to escape the difficulties and pressure imposed in the country of residence. Such businessman might try to protect himself and gain economic advantages by means of using offshore company and offshore bank accounts, offshore structures, international contracts and transactions; all in order to escape the pressure and difficulties of the local law. It is sometimes considerable easier to make business with the international ocompany then to register and make business with the company in the country of residence. Such business and actions are legal for almost anyone on this planet. But illegal business and illegal tax evasion does not represent any real protection nor real economic advantage; it implies risks of being discovered over long time and risk to pay more fines and taxes than actually saved by such illegal business. Mean reasons for legal offshore business are: 1. Personal integrity, conscience and common sense improve the survival of business for longest terms 2. Real protection and economic advantages in accordance with the laws 3. Governments, banks and companies have put rules of game in the place, and you become one of the better players. It is also important to take care to respect the laws of other countries too, because the companies are formed in accordance with the law and your company will not survive long if you don't respect the rules of the game. In general there is no need to form a company if you don't respect the laws. Any benefits or economic advantages shall be enjoyed lawfully. Example of of many of legal economic advantages: 1. Foreign foundation benefits to the support of children of some family; such support or gain is either not taxed up to some limits or is taxed by lower tax rates as it represents gifts or grants. 2. The local law in the country of residency dictates how such economic advantages arrived from foreign business can be legally enjoyed. 3. Many expenses of foreign corporation or offshore corporation can deduct the distributed income at the end. Offshore company can own real estate and thus reduce the taxable income; offshore company can own vehicles, yachts and ships and thus reduce the taxable income in the country of residency. 4. The final legal solution to enjoy economic benefits derived from offshore operations depends of the laws in the offshore country and laws in the country of the residence where such income is paid out or given to the beneficiaries. Thus, having residency in a country with tax incentives or in country where world income is not taxable can be of great advantage. Even changing the residency for shortest legal time to the country with law residence can help the businessman to pay out legally such offshore income and return back to his country. In many countries there are minimum amounts of income which are not taxable, and that can be of advantage to some businessmen. Sometimes foundations, trusts or offshore companies can invest or pay inscurances which are not taxable benefits. For every of such similar examples it is important to base them on documented legal facts which cannot be argued against. Such facts must be true facts, because you remain legal player and the tax officer could make you question in such case, but cannot argue against your doings and you become too big a bite. There are many different methods how to enjoy economic advantages and benefits derived from offshore activities. The precise methods depends of the country of residency of the businessman and applicable laws. Once we determine the applicable laws, jurisdictions in questions, country of residency and nature of such offshore structure and business, we can help the businessman design the legal method to enjoy the offshore economic benefits in accordance with all laws. - Plan in advance Registration and formation of offshore structures shall be planned in advance, much more before you intend to commence any business. The principle of planning in advance is important for business in general and shall be applied together with all other princples. In order to comply to laws, you have to plan in advance. In order to control the assets instead of ownership, you have to plan in advance! If you are to gain high worth real estate, it will be too late to arrange the tax free transfer of real estate with ceased relatives, it will be too late for any offshore company incorporation. The same is true for many other businesses. With the offshore company you can gain profit by making one simple contract. But if you don't have the offshore company ready and in good standing, it can be late to furbish the contract. Important offshore business principles is to plan in advance. - Maintain reserves and segregate wealth! When doing offshore business, you are turning laws to your advantages, you become better player in the business world and gain more business freedom and possibilities. But you have to plan in advance to ensure yourself and your business by maintaining reserves and segregating wealth. You have to maintain another ace in the sleeve, ready to be used in cases of emergencies. Example of practical reserves and wealth segregation: 1. Using several offshore companies or local companies for business, you can use one company as operational company and other company as passive or holding company which protects and keeps the values and wealth, which maybe receives the economic advantages and income from the operational company. Such holding or protective company can be a foundation which is passively collecting income. The operational company need not be located in offshore jurisdictions, but can be in any other country or in the local country and there can be several operational companies. 2. Liquid assets you shall keep on several bank accounts, when possible in the name of several business entities. You use just one or few accounts for operations, but other accounts you use for secure protection of liquid assets and personal gains. 3. Maintaining reserves at any times is valuable future protection for every business. 4. Every real estate assets you can keep in the name of the passive offshore company or other company, belonging to your protective offshore entity such as foundation or offshore corporation. The maintenance fee for the passive company keeping such real estate can be very modest and it brings you protection against any future mistakes or future creditors, because such company is passive and do not enter into operations which can endanger the existence of the company and assets held. 5. Segregate your wealth in different kinds of investments. 6. Ensure the future against the jealous and greedy business partners and even the members of the own family. Work with several partners and put rules in place which will guarantee that your business remains safe in the future and that you can always have double solution or plan B in case that something goes wrong. For example, private assets can be held in the name of the company and such assets cannot be taken after the divorce proceedings. - Control everything, own nothing! Control everything, own nothing is the important offshore business principle in order to protect yourself against your own future business mistakes. Control everything, own nothing helps you to protect the assets in such a way that assets are held in the ownership of business entities, offshore corporations, foundations and trusts and not in the individual ownership. You keep the low profile, because you don't officialy own those assets and do not become the mark for legal attacks. For example a foundation is business entity which does not belong to anyone as it has no shares or owners and serves its own purpose to manage the wealth held in ownership. Such business vehicle, the foundation, can be used to own other offshore companies, local companies and any assets such as real estate, yachts or vehicles; and to receive the business income derived from operational companies. If you don't own shares in your own individual name, such shares cannot be confiscated for any reasons. Any real estate and liquid assets held in the name of foundation or offshore corporation remain protected. Businessman can during the time make mistakes such as importing valuable vehicles or goods to his own country and thus invoking very high import tax liabilities. The tax liability can become greater than his own individual assets and thus his invidiual wealth can be harmed. By carefully designing the offshore structure, such property could be imported without the tax implications, as for example by means of foreign investments which are usually tax free in most of the countries. A foreign foundation can form a local company and paid in the capital in such local company without tax implications, or import vehicles and purchase real estate in the name of the local company. Careful structure and segregation of wealth helps to maintain absolute private control without individual ownership and thus many liabilities. - Maintain proper records and evidences Maintain evidence of all business transactions in case of any future controls or reviews! For example, you might have a contract with your offshore company to receive salaries for performed services. The offshore corporation or foundation can accumulate the reast of the wealth in the foreign countries, does keeping such wealth tax free. Such circumstances depends of the applicale laws of course, but we take that as an example. But what if the local tax authorities question such a structure? When such questions arrives and you have the proper evidence of your business transactions, your business cannot be attacked and default judgments cannot be concluded. You will have the proper contract in place, the offshore company will be established in accordance with the local law and will be as such recognized. Every such evidence and record must be true record, made in time and in accordance with all applicable laws. Many offshore companies and foundations are not required to maintain accounting or to report accounting to the offshore country and of course, you don't need to keep all transactions and records, but you have to keep those records and evidences which are required to maintain your protection against the applicable laws. - Comply to the tax laws In order to have optimum protection you have to completely cooperate with the tax authorities in accordance with applicable laws! You use all other offshore business principles, but you also cooperate with the local tax offices. That brings you more control over your business and you will ensure that you make only safe moves. For example you might actually ask the tax officer what you are allowed to do and which benefits are tax free in your country. Your direct communication with the tax office and compliance helps you remain untouchable. Access to such informations can as well be anonymous, not to jeopardize your current business status. That principle also includes that you properly report your reportable assets and income, just as the laws require it from you. You report what you are required and comply to the required laws. But what need not be reported, will not be reported. You use the laws to your advantages, and you do that legally. Practically that means you will keep the low profile and not disclose your business activities to tax offices if you are not required to disclose them. You will not inform your friends, relatives and business partners of your important business activities which could be target for the attacks. You will use the privacy and confidentiality to keep your business secrets to your advantages, but you will take great care to furbish required reports. Such reports and tax obligations depend from country to country. It can be for example that you have to report your contract with the offshore company, so you report that, but the accumulated income in foreign company need not be reported (depends of the country). Fact that your offshore foundation or offshore corporation accumulates values and wealth often need not be reported. Finally, the offshore corporations are legal entities recognized in all other countries as such in accordance with international commercial agreements, and such property can remain long under ownership of the offshore business corporation. If you are required to report your ownership in the offshore corporation, than you can take steps to transfer such ownership in the name of foundation which is the entity for itself without ownership. And if you reside in a country with high reporting requirements, you can always benefit of non-controlled offshore corporation and do your business if the proper structure is in place. - Maintain business secrets and privacy Maintain your business secrets and privacy in order to protect your business, but not to hide the illegal income. By using other offshore principles, you will find ways to legally enjoy such economic advantages and benefits and privacy and confidentiality shall not be used for illegal purposes as that does not bring real protection. Once you start with offshore business and offshore structures, you will gain economic benefits and business freedom which is usually not available to the local businessmen, and you turn the laws around to your advantages. As such you are moving yourself in the unusual area, the actions you do are not common actions like the majority of other people in your environment. Even the own wife can become envious and might harm such business and ask for the divorce proceeding. Your neighbor might try to attack your business for some reasons and might make reports even if you are doing your business in accordance with applicable laws. Jelaous persons and greedy attorneys might choose your business and your property as target for legal attacks. Governments and countries do not always respect their own laws, you might be fined for actions which were not legal and defence can become expensive. Sometimes it can be enough to have foreign vehicle to be fined for the traffic abuses you have not commit. You can be asked in the middle of the night to step out of the house and to visit the police station for questionnaires, your human rights might be abused. You have great protection by using the offshore business principles explained here, but you also have to maintain and keep your busines secrets and privacy in order to remain untouched. One such attack on your business can imply high expenses for defence! If you keep and maintain confidentiality and privacy, you are keeping your business secrets. Make sure to have evidences about your business in accordance with the other principles and you will have sufficient protection against the law in the case of any questionnaires which might happen.