Q Asia Pacific shows www.qasiapacific.com - The historical and the continuing primary attraction of incorporation is to limit the liability of investors.
Using companies to mitigate tax.
Because a company is a distinct legal entity, profits received by a company will be taxed applicable to the company so a resident of a high tax country may set up a company which is subject to low or zero tax and arrange for profits to booked into the name of that company thereby making a saving equal to the difference between the corporate rate of tax and the shareholder personal tax rate.
What is offshore?
Q Asia Pacific upon www.qasiapacific.com - The offshore islands off the coast of Europe and North America were the classic offshore financial centers (OFCs). They were characterized by low or no taxes and less onerous ownership requirements.