Why Offshore?

We live in an ever changing business environment, where many countries impose crippling taxes on the honest hard working majority. This explains a large part of why so, so many businesses (2 out of 3 in some countries) close within the first 2 years and few survive until 5 years of business has been completed.

To go or trade “offshore” simply means to set up a registered business in an offshore jurisdiction and effectively trade as a company from a country that imposes little or no tax upon the companies trading from there (usually for business derived from outside of the tax haven). You do not need to go there to set up your company, have board meetings or have an office. You can trade offshore very easily.

The term “ offshore” often conjures up images of criminal activity with Carribean bank accounts. Needless to say money laundering and other unwholesome activities take place in offshore banks as well as they do in High street Banks worldwide.

When we are talking about “offshore” we are meaning: an offshore jurisdiction that enables a company to operate legally with little or no imposing taxes, no accounting requirements and very high privacy.

Privacy protection is another main reason that individuals and companies get attracted to an offshore environment. Since the rise of worldwide terrorism there seems to be an increased lack of privacy all around. Governments clearly want to know what everyone is doing and have control, to reduce security threats. Although combating terrorism is a serious issue, the expense of doing so is often reduced privacy for the individual and business. It is noted that recently governments are putting pressure on some offshore jurisdictions to reduce privacy. Some jurisdictions have caved into this pressure, and then anyone with any sense simply sets up their company and banking in a more favorable location.

For many years offshore was the preserve of the rich, wealthy and for politicians that clearly knew where to put their money and how to prosper from it. The everyday individual (ordinary Joe) had no knowledge of such things and so works hard and struggles with his business. The following is a true life example but names have been replaced for privacy (ordinary Joe).

Ordinary Joe is a hard working individual; he has self respect, a loving family and has just started his service related business. His first year is a real struggle he works all hours possible, his wife is also working hard keeping up with accounts and the increasing legislation imposed on his type of business. When his first year accounts come in he is astounded at how much money has come in but clearly gone out again. On top of that he is struggling to pay sales taxes and now has a large income tax bill to find. Although having earned this money he does not have it, it all went out on expenses. So to recover he has a very motivated drive to get more business. This pays off and he gets some large contracts and has to start employing people to do the work. This scenario repeats and gets worse until ordinary Joe is in serious trouble. In desperation he sells his business to pay off some of the debts, but had previously set up a different product related business in the hope that this may be the answer. Unfortunately this is also leading him down the same route. Ordinary Joe ends up losing his home and owing a great deal of money. Fortunately for ordinary Joe he picks himself up and starts learning about offshore business and the internet, his future turns out much brighter having a comfortable offshore income, he now has control of his life and sleeps at night.

Ordinary Joe is not alone thousands of individuals and businesses struggle to make ends meet, and the end can get very unpleasant.

Hopefully you are not yet in this position but whether you are or not “offshore” is undoubtedly the best way to do business. Why do think the rich stay rich do you think they are all paying up to 40% tax on all income, I do not think so. They pay advisors to legally work around the system, tax loopholes, offshore trusts, property investment, primarily all done offshore.

You too can benefit from an offshore business, but this book is about setting up a global offshore internet business so why the internet?

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