Incorporating Offshore 

Certain businesses which take place wholly or partially outside of Canada may gain many advantages by incorporating offshore. Tax and regulatory environments in many countries are far more favourable than in Canada. Unfortunately, a number of traps for the unwary exist, because Canada and other high tax jurisdictions seek to prevent "tax leakage" to lower tax jurisdictions. An additional problem is that offshore incorporation has obtained a bad reputation because some individuals have used "tax havens" and "secrecy" for improper purposes. You also have to be careful in your choice of advisors.

Offshore Corporation Structurs Face Complex Legislation

Offshore corporations which have Canadian directors or Canadian "guiding minds" face complex legislation and the risk of tax penalties if you get the structure wrong.

Of course, gaining advantage and opportunity come at a price. Compared to domestic corporations, the cost to start and properly maintain offshore corporations is costlier by thousands of dollars, and the choice of jurisdiction and structure is far more complex.

At INC Business Lawyers if you want a second opinion about offshore corporations we can review your proposed or existing structure and advice you or problems and potential solutions. Generally if you have failed to consider the benefits or problems which arise from tax treaties you should seek advice.

For more information about offshore corporations generally call Stuart Moir at 604-272-5474 or e-mail stuartmoir@incorporate.ca