When it comes to protecting your assets offshore, it means you have to control your assets using a business instrument in a foreign jurisdiction with favourable laws.
You need to take advantage of these asset protection jurisdictions to make the most of it. Offshore asset protection is available in different forms. It is advised you to consult a professional before selecting what’s right for you and your business. In many cases, people use a combination of jurisdictions as it gives them more protection and privacy.
If you are planning to set up an offshore company, countries like Seychelles seems to be a better option. That’s because they offer you favourable business conditions at all levels.
Using an Offshore Company for Asset Protection
Here is how you can use an offshore company for asset protection:
- Avoiding a lawsuit
Avoiding a lawsuit can be a great idea. There is no argument on the fact that an attorney is a real winner in a lawsuit. Being able to avoid a lawsuit can give you far better outcomes than a courtroom victory.
The most important thing in offshore asset protection is financial privacy. When you leave your assets exposed, they get the attention of hungry creditors. Therefore, you should make your financial scene private.
- Tax Haven
By tax haven, we understand that it is related to no or very little income tax in the jurisdiction. However, that is not the case in reality as people in the UK, US, and other major jurisdictions are taxed al across the world regardless of the tax ecosystem of the selected jurisdiction.
- Judgment Proof
If you ever need judgment proof, then you should know that there are asset protection options available in jurisdictions. They are meant to provide a good amount of protection for investors.
Cook Island is perhaps the strongest legal tool in offshore asset protection. They don’t support any foreign judgments. They stay outside the US and thus, they don’t have to comply with the court rulings.
You need to remove your local court’s jurisdiction from your assets to make the offshore asset protection work.