Reasons Why a Singapore Company Owner May Start and Own an Offshore Company
There are several reasons why someone who owns a company based in Singapore might choose to start and own an offshore company. One potential advantage of ownership of an offshore company is that of its location. Certain industries in Singapore are currently either in a state of decline or going through difficult financial times. However, these same industries could be enjoying positive business and financial conditions in other countries. For this reason, the owner of a Singapore business which is part of such an industry might opt to start an offshore company based in a country in which that same industry is experiencing much success so as to maximize the potential profit level of the business in question.
Some might also choose to start an offshore company because of the high level of asset protection provided through ownership of an offshore company. Singapore company owners who are concerned about the safety of the assets that have been placed within their company might choose to move these assets into the offshore company. Although Singapore’s level of asset security is relatively high, some countries are able to provide an even greater level of safety for assets within companies. Therefore, ownership of an offshore company reduces the risk of suffering severe financial losses.
Ownership of property in another country is another advantage of ownership of an offshore business. Depending on the business activities which are to be performed by the offshore business in question, ownership of properties in a foreign country could be of great advantage to the business owner. Thus, an offshore business could become more successful by owning properties in that country.