Investment Company

Offshore / Tax Exempt companies can often be used as an investment conduit in order to allow money /assets to grow in a tax friendly environment with you, as opposed to the taxman, deciding if, when and how much money should be repatriated.

Both large companies and individuals regularly use offshore companies as mediators to hold investment portfolios, which may consist of stock, bonds, cash and a broad range of other investment products. Cash assets held by offshore companies earn deposit interest gross or can be placed in collective cash funds.

Funds held by the company may be invested anywhere in the world. In many jurisdictions there is no capital gains tax and it is possible to purchase tax free bonds or benefits from bank deposits where gross interest is paid. Concessionary tax treaties with high tax countries may also allow for tax efficient investments. Where the company collects and pools investor funds for the purpose of collective investment and the company issues shares, or similar interests that entitle the holder to receive or demand a proportionate interest in the whole or part of the net assets of the company, the activities of the company may well need to be licensed in several jurisdictions.

Domestic tax legislation in the shareholder's country of residence or domicile is important and appropriate advice should be sought.

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30/09/2006
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