‘When the going gets tough, the tough gets going,’ so goes the saying and can best exemplify businesses that take risks by venturing in others sectors or even countries. Going offshore or setting up an offshore company can sometimes be what the doctors advised (no pun intended.) This becomes imperative when the stifling tax rates and procedures in your home country become a disincentive or drag your business down. The term offshore means going out of the jurisdiction of your country typically into a tax haven.
In most cases of offshore companies, the management resides in other countries (read the country of incorporation). In fact, an offshore company is generally set up in a country with high tax rates. This happens when a business wants to take advantage of the friendly laws that do not exist in the country of incorporation. Among the tax friendly countries with many beneficial business laws, Georgia stands distinctly apart. Let us find out how can Georgia be of help as far as opening an offshore account is concerned.
Benefits of opening an offshore account in Georgia
Low or zero tax rate: It is arguably the primary reason for a business to open an offshore account. This is where Georgia with its business friendly laws, stable polity, growing economy, good infrastructure, and a low tax regime comes into the picture.
Easy fund transfer: To ensure an offshore company functions to its maximum potential, certain enablers are needed. Among these, the ease of fund transfer comes the foremost. The offshore branch should be able to transfer funds to its headquarters and vice versa seamlessly. Georgia with its full currency convertibility can help any offshore company to invest or divest funds to and from its parent company. The Georgian banks offer Master and Visa cards or Unipay by using which a corporate can carry out transactions in multiple currencies with ease.
Low bank fees: The bank fees in Georgia are really low and help a corporate to carry out multiple transactions without worrying about the cost incurred. This aspect can really help an offshore company in pruning its cost of operations to some extent.
Protection from lawsuits: A business owner can tie his or her individual assets to an offshore company. This way the assets can be saved from future liabilities. In the case of a competitor filing a lawsuit, the assets of the business owner can easily be traced by an asset search. However, should the assets be tied to the offshore company, they can be spared.
Trade facilitation: By virtue of various trade agreements that Georgia has entered into with its neighbours and crucial economic blocs like the EU, an offshore company set up in Georgia can avail a flurry of benefits. These include exemption from customs and import duties or paying them at a lower rate.
Setting up an offshore company can bring many benefits to its parent company in today’s competitive business environment. Georgia with its business friendly policies can be of help to any company that wants to see its growth rate soar.