A company registered in a jurisdiction that is considered a “tax haven” is generally called an “offshore” company. These companies are formed for many purposes, the most common of which are privacy and asset protection. This type of company must be registered by a licensed, experienced attorney who will keep the client’s information confidential.
An offshore company should never be registered by banks, accountants, or by any other institution which does not have guaranteed confidentiality of an attorney. An attorney can provide the right credentials and appropriate protection needed in an offshore structure.
There is no other business structure which offers stronger asset protection with as great flexibility as an offshore company. However, if it is not formed correctly, by a experienced attorney, the company can lose the basic principles and purpose of privacy and confidentiality.