If you provide professional services, such as consultancy or a sole trader, you may want to consider an offshore professional services company for two reasons: asset protection and tax planning.

Such services include those provided by lawyers, doctors, designers, internet marketers and entertainers.

The tax benefits come from acquiring clients outside of the country of residence, allowing personal income to be tax free in the offshore jurisdiction. If your company then reinvests money in that jurisdiction, any money earned would also be free of tax.

The key is to be sure that your company does not get classified as a resident company in your own country or it will fall within your country’s tax code.

I’d like to hear what you’ve got to say about forming an offshore company. Please leave a comment…