Offshore companies have been used for decades mostly for the benefits & features:
- Tax Optimization & Planning: Most Offshore Companies are not subject to any taxes in the country they have been incorporated. Most of the time they will have to pay annually a franchise tax and the registered agent & office fees.
- Privacy & Confidentiality: Those two elements are essential for many reasons like security or asset protection. Running a business or buying a house or a yacht using a company and not your personal name can keep the identity of the owner anonymous since he will not appear on any official document or register.
- Cost: Incorporation fees as well as annual renewal fees to maintain an offshore company can be very low.
- Cost of operation: Maintaining and running a business through an offshore company can save a lot of money since there are no accounting requirements, Registered office are not expensive (a few hundred dollars per annum), you can hire people worldwide.
- Legal & Asset protection: Privacy rules grants Offshore company with a better capacity to protect its owners and itself from lawsuits and other legal risks. Laws applicable to the offshore company are those the one of its place of incorporation, and not the country where it carries on business.