General Knowledge About Offshore Companies

Is it actually legal to own an offshore company?

Yes. Owning shares in an offshore corporation, either directly or indirectly, is no different to owning a domestic business. Certainly, an offshore ownership should be considered along with some proper advice. Many high-tax countries have legislated certain countermeasures in their tax regulations against known offshore finance centres. In particular, some high-tax governments have introduced a discriminating witholding tax on direct payments from domestic businesses out to corporations, situated in certain offshore jurisdictions. Therefore, it is a good idea to check if Your country has such "blacklist" or any discriminating regulations against transactions with offshore companies. A competent tax lawyer or accountant back at home should be able to clarify this question. All-in-all, offshore company is just the same as Your domestic firm, only the offshore corporation is not burdened by excessive tax, is faster to incorporate and easier to manage. As such an offshore company is completely legal to own and to use.