Offshore Asset Protection and Management Business
An offshore asset protection and management business takes advantage of a strong and likely to continue trend that is moving people, companies, and wealth offshore. Understanding the dynamics of this movement of talent and wealth and available options will allow an individual or corporation to profit from helping set up and helping manage the legal entities that make asset protection offshore so attractive.
For a variety of good reasons many individuals and corporations are setting up offshore bank accounts, corporations, and foundations. Many retirees do this but so do business men and women in the middle of their working lives. Because many offshore jurisdictions are often tax advantaged compared to an individual's country of origin, cheaper to operate a business in and from, and more attuned to asset privacy and protection,. many are moving their business operations, lock stock and barrel, offshore.
An offshore asset protection and management business takes advantage of the fact that those who want and need offshore services do not have an in depth knowledge of the various jurisdictions involved. These individuals and corporations very commonly will need help in structuring their operations to take maximum advantage of the legal structure of the jurisdiction in which they wish to retire, bank, set up a foundation, or do business and for more helpsetting up a business in dubai
The Potential of an Offshore Business Assisting in Asset Protection Reliable estimates put the amount cash and other liquid assets held offshore (in parcels of over $1 Million) at over $11 Trillion. This is the wealth of so called high new worth individuals. Estimates of the yearly earnings of this wealth come to over $600 Billion a year. The very, very wealthy have taken advantage of offshore legal structures for many years if not generations to protect their wealth and to provide a degree of privacy for their holdings. As more individuals have gained substantial wealth and as offshore structures have become more available a larger number of individuals and corporations have moved part or all of their operations out of their countries of origin.
Individuals and corporations move assets to tax advantaged jurisdictions to same money. Likewise they do business in many of the same jurisdictions because the paperwork is less intrusive and less time consuming. A great many tax advantaged, discrete offshore jurisdictions also have a lower wage scale than that of the individual's country of origins helping to decrease the overhead of doing business.
The $11 Trillion figure quoted above only refers to cash, as in bank accounts. It does not refer to real estate, non-financial assets, or businesses! Thus the amount of assets either lying quietly in protected locations or doing business and increasing net wealth is substantially more than the commonly reported $11 Trillion or so.
The amount of wealth held by high net worth individuals in search of the right offshore jurisdiction, the right legal structure, the right asset management team, and the most profitable investments is phenomenal. And, the numbers quoted only apply to the wealthiest individuals. There are a lot of people whose cash wealth is less than $1 Million who are in business or ready to retire and are looking to grow and protect their hard wealth in the right offshore jurisdiction with the right asset protection and management business. Because this group is substantially larger its total assets may well exceed those of the high net wealth group.
Setting up an Asset Protection and Management Business Setting up a business to help with and prosper from the steady movement of capital offshore requires a handful of steps. The individuals or corporation will want to find a competent advisor, not tied to just one jurisdiction. They will need to decide which jurisdiction will be best to operate from and which will give them the greatest advantage of being able offer services across the globe. The principles will need to apply for a license and bring together sufficient capital to start up. Then they will need to set up the business, decide which staff and services to operate with locally and which to outsource. They will want to structure their business in such a way as to take maximum advantage of the benefits of the jurisdiction in which they set up business.
The Right Advisor The most important factor in setting up an offshore asset protection and management business will be getting sound advice from someone not tied too strongly to local interests in the jurisdiction within which they are licensed. Working with someone who is essentially a feeder for a local bank or lawyers will be self defeating. Look to someone who advises on and provides services for setting up in at least two jurisdictions if not more.
Picking the jurisdiction from which to operate an asset protection and management business will entail a number of factors. The country should be politically stable and under the rule of law as opposed to the rule of a dictator or military junta. The country should offer the right kind of licensure with minimal restrictions for carrying out the business. The jurisdiction should offer banking, corporate, and/or foundation privacy in dealing with the company's assets. Finally, the jurisdiction should allow the company to operate throughout the globe.
Applying for a license will just be a matter of paperwork for the officers, shareholders, and directors of the company. In some jurisdictions it may be possible to use nominees for a number or the positions company to maintain the privacy of the principals. This is a matter to discuss with trusted counsel from the beginning. A government issued license for asset protection and management services will typically cost around $27,000 to set up, including all application fees and the first year of licensure. The yearly cost will typically run around $12,500 including license renewal and fees.
Setting up and running an asset protection and management business in an offshore jurisdiction will take expertise. However, the directors, shareholders, and officers will be able to hire legal, accounting, technical and other expertise as needed. No one will need to reinvent the wheel in setting up such a business. Back office operations including functions such as web site development and maintenance can be effectively outsourced.
With the huge and growing amount of wealth offshore the business of helping others find the right offshore solution can be very profitable. The business of helping manage offshore wealth for those in need of discrete, competent help in this matter can provide an income stream for life.