Features of an Offshore Company

Taxation

A Limited Company enjoys favourable tax concessions than either Sole Traders or Partnerships. It is subject to tax on the total taxable profits earned during the financial year. Directors pay taxes on their personal income, including any perquisites received as part of their remuneration package from the company.

Limited Liability

Unlike a partnership or sole proprietorship, the owners or directors of a Limited Company cannot be held liable to pay off the company's debt and only the company's assets can be claimed by creditors. Directors and Shareholders have no personal liability whatever (unless they have acted in a way to cause the situation) and there are no restrictions on the Directors forming another Company.

Ownership

The ownership of a Company is known, so it is easier to value the business for purchase or sale. The owners are listed along with the proportion of the company that they own. The relationships between joint owners are consequently far less complex than most Partnership agreements. The shares of a limited company can be traded - purchased or sold - between interested persons, and can also pass over to others, as in a will of the shareholder.

Protection of Business Name

No two limited companies are allowed to have the same name. Before proceeding to register a new Company the proposed names are checked for availability and suitability.

Continuity

In a Limited Company the death or resignation of a company director or shareholder does not affect the structure of the Company which continues as before. The Shares of the deceased pass to the others in accordance with the Articles of Association or as mentioned by in the will of the deceased.

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30/09/2006
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