What Does the Term Offshore Company Mean?
In simple terms it is a company incorporated in a jurisdiction other than where the owner lives. In this case, that incorporation would take place in the country of Vanuatu. An even more simplified definition is that the company in question is formed in an overseas location from that country in which the owner resides.
An offshore company conducts most transactions outside of its physical borders. These transactions take place where the company is incorporated. For the purposes of our discussion, we are talking about incorporating in Vanuatu. Therefore, if you choose to set up your offshore company in Vanuatu, all transactions will be conducted through them.
Why Would You Want to Do This?
The most common reasons are to take advantage of tax-free policies and minimal regulations that another country can offer to company owners. In the case of Vanuatu, there are zero taxes for the first 20 years of a company’s existence. After that, tax rates are still extremely low. Vanuatu offers very few regulations for running a company. The owner is free to conduct business as he or she sees fit.
Vanuatu is also well-known for its strict privacy laws. What this means for a company owner is that he or she never has to reveal information on the company itself or its finances to anyone else. This makes the whole process of having an offshore company there completely safe and hassle free.
Additional Reasons to Have an Offshore Company in Vanuatu
It will give you a great reason to visit the country. Vanuatu is a virtual paradise in the southern Pacific Ocean, not too far from Australia and New Zealand. It’s sparkling blue waters, pristine sandy beaches and tropical climate makes it a favorite vacation spot for vast numbers of folks.
If you happen to have an offshore company in Vanuatu, you can legitimately categorize your visit as a business expense. Dine in fancy restaurants with prospective clients, charter a yacht for your key executives, enjoy yourself – all for business reasons.
Description of How an Offshore Company Works
As a legitimate corporate entity, it is permitted to hold assets, trade, and perform regular business activities in a jurisdiction that differs from its physical location. It is considered to be a non-resident company because almost no financial transactions are conducted within the host country’s (in this case, Vanuatu’s) borders.
There are many legal protections afforded to an offshore company formed in Vanuatu. You will be subject to their laws and minimal regulations as opposed to the county where you and your business actually reside. Opening such a company in Vanuatu protects your business from anyone bent on performing malicious activities towards your company. As we already mentioned, privacy laws make it impossible for such people to find out anything about your company.
Yet another reason to form your offshore company here – the economy is thriving. The government is stable, the people are content, and businesses fair well. For these reasons and more, Vanuatu has a phenomenal economy going. It is expected to remain this way for at least decades to come.
The country also has a stellar reputation for investments. Those people with money to invest frequently look for opportunities in Vanuatu. This country has never disappointed them. All these factors result in a fantastic economy. This means your offshore company has at least a 95% chance of succeeding. Look into opening yours today!