LAVECO’s offshore companies offer benefits beyond direct taxation

By SeeNews team

 

Laszlo Varadi

Laszlo Varadi, Managing Director, LAVECO

Q: How has the role of offshore companies developed over the years?

A: In the international business world nowadays, offshore companies still play an important role although it has shifted primarily to holding, administration and protection of assets. We can set up tax-free and low-tax companies for our clients in some 40 jurisdictions. We have connections with more than 15 leading banks worldwide. It is possible to open bank accounts for the companies formed which can be managed in complete comfort from anywhere in the world.

Q: What have been the effects of the global economic crisis on the company formation business?

A: Naturally, the world of company formation has not been left unaffected by the worldwide recession. Considerably fewer companies have been registered, for example, by enterprises and business people involved in the construction industry. At the same time, stability has taken on even greater importance. LAVECO’s clients show preference for jurisdictions where the legal system has remained unchanged for many years and which have a well-established infrastructure. As 2011 has progressed, for example, more and more companies are being formed in Hong Kong. Similarly, companies registered in Cyprus are enjoying increased popularity due to the EU’s most advantageous tax regime, which covers various taxes, not just profit tax.

Q: What do customers get if they choose LAVECO to set up an offshore company for them?

A: A ready-to-use, convenient and practical corporate structure which provides the client with the utmost security. In addition to the various types of tax-free offshore companies, it is also possible to register offshore private foundations and trusts. These have been developed primarily for the purpose of asset protection, and in England, for example, the trust has a tradition dating back 800 years, making it a completely reliable vehicle which is maybe not so well known in continental Europe.

Q: From the client’s perspective, what are the advantages?

A: When it comes to offshore companies, everybody automatically thinks of the advantages in relation to direct taxation. The companies registered by LAVECO, however, offer much more, and today it is not so much direct taxation benefits which are the priority. Today, just as much as ever, discretion is extremely important. It is not only the state which can pose a threat to an entrepreneur’s hard-earned income, as there are many potential sources of danger in the immediate surroundings. Entrepreneurs may face numerous ill-intentioned people who want to get hold of their money one way or the other. But even a business partner, family member, friend or girlfriend may have designs on part of one’s personal wealth. An offshore company can provide a very convenient solution in a situation like this. It may also be an advantage that in many cases, such as the British Virgin Islands, Belize and the Seychelles, there is no requirement to file accounts. This reduces the cost involved in maintaining the company and also means it is not necessary to gather all the receipts etc. and deal with bureaucracy. In addition, if an offshore company is the owner of a Bulgarian enterprise, it is not easy to establish officially who the company and its assets really belong to.

Q: Isn’t this still a privilege of the superrich?

A: Absolutely not. The structures offered by LAVECO are by no means beyond the reach of the average businessperson and are not at all expensive. A company bank account can be managed quite simply and it is very rarely that you actually need to call the bank. In addition, we at LAVECO are always there to help in resolving more complicated issues. We have plenty of experience in dealing with both company and banking matters. There are even structures where it is possible to form and maintain a company purely for the purpose of employing or appointing an experienced manager.

Q: What makes LAVECO stand out among its competitors?

A: There are numerous company formation agents throughout the world, providing the same or very similar services to those offered by LAVECO. There are, however, a number of elements which differentiate LAVECO from the crowd. We have offered stability to our customers for more than 20 years. We have a clear pricing policy and our prices are affordable for the average business person. Our bank account opening periods are much shorter. And finally, we have our own international background infrastructure and a multilingual customer service team.