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Why Offshore?

Why Start an Offshore Company?

Let’s look at some of the reasons why you might want to start an offshore company.

TAXATION

Using offshore companies can create low tax burden economic structures in both the productive, commercial and service sectors. The availability of a low tax burden is due to zero or extremely low rates of profit for the offshore company.

Anonymity

Offshore companies typically ensure the anonymity of their owners and managers. Offshore companies are thus able to protect their assets. Offshore companies are also well-placed to execute an entry in a market without disclosing their actual investments to their competitors.

FLEXIBILITY

The rules of offshore companies provide flexible, appropriate expertise for versatile use.

PRESENCE

Some low-tax areas enjoy high international and domestic prestige along with anonymity. Based on our clients’ experience, in many cases, there is a lack of international confidence in contracting with a local company, and foreign partners prefer to accept a company registered in an internationally recognized financial center as a partner.

TRANSFER OF SHARES, DISPOSAL OF COMPANY

If the offshore company owns a business or share in another company, such as Magyar Kft. Ownership of shares and income from their transfer is one of the classic uses of offshore companies.

DIVIDENDS AND INTEREST INCOME FREE OF CHARGE

One of the classic uses of offshore companies is to own shares in other companies, to own securities of other companies, and to receive income from them. In many cases, offshore companies are used to finance investments in other countries, typically in the form of loans. Interest on the loan is recognized as an expense in connection with the investment, and the offshore company is not required to pay tax on the interest received.

OWNER’S DATA CONFIDENTIAL

At most offshore locations, offshore company ownership information is not submitted to a government agency (eg, local company registry, Company Registry). In most offshore locations, it is not necessary to disclose the identity of the authorities to the authorities in order to register a company. There may be situations where it is necessary for the owners to be named or there are locations where the offshore company owner information is included in the business register. In offshore locations, nominal ownership is typically also possible

PATENTS, TRADEMARKS AND COPYRIGHT UTILIZATION

Various patents and trademarks are classic uses of offshore companies. In addition, offshore companies can also be used to receive revenue from the exploitation of various copyrighted intellectual property, in particular software, film, music. Depending on the country of incorporation of the offshore company, these revenues are either exempt or extremely low in some selected locations.

OFFSHORE COMPANY WITHOUT ACCOUNTING OBLIGATION

Some offshore registered companies are not required to keep records of their business transactions, nor is it compulsory to use an accountant. This is because the amount of fees payable to the home state (typically a fixed $ 100-200 per year) does not depend on how much revenue or profit a particular offshore company has realized, so it is not mandatory to calculate them, as opposed to a balance sheet must be prepared in accordance with the Accounting and Corporate Tax Act. These offshore locations typically do not need to report business transactions to government or other entities.

Such locations include the Seychelles, Belize and Panama.

DUTY-FREE BENEFITS

There are double taxation conventions with certain special locations in Hungary that exclude certain benefits that companies provide to Hungary from being taxed in Hungary. If these benefits are not taxable in the country in which the company is domiciled, such income may be fully tax exempt.

FOREIGN TRADE

If a company produces for export or imports from abroad raw materials, semi-finished goods or finished goods, it is often possible that by structuring transactions, most of the profits are made in offshore companies, after which the offshore company is not liable to tax.

Additional exemptions may be required for each tax exemption, so it is essential that you seek tax advice before applying.

 

 

 

 

02

Create a Strategy

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03

Customize a Portfolio

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04

Manage

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How it Works

Our Approach

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Community Partnership

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Investor Relation

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Growing Funds

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Contact

Get In Touch

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Divi Investment Firm.

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