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Offshore Company Land NewsLetters?


Is there more risk with using an offshore company?
Staff writer:
Sept. 12, 2012

Offshore companies have the same risk profile as any other company. The country (jurisdiction) that a company is incorporated in does not confer risk. Regardless of this, once your company was incorporated in an offshore jurisdiction some people will automatically assume that you are involved in a risky business.

The business activity of the company determines the risk level of the company. A company selling baby clothes has the same business risk as another company doing the same business. No matter where a company was incorporated, its up to the managers and owners of the company to deal with its operational risk management. 

Most offshore companies go into controlled business situations. There is a plan for its use and generally it does NOT involve broadcasting its existence. This is completely different to most non-offshore companies getting into business and then actively looking for customers to buy its products or services.

If you are planning to use an offshore company actively, then you should be prepared to deal with peoples perception of doing business with the company. There is nothing you can do about this perception whether it is good or bad.           

If you have any questions about the above, send us an email.