Offshore Support Vessels (“OSVs”) are specially designed ships for the logistical servicing of offshore platforms and subsea installations, from installation through the full service life of offshore oil etc fields.
OSV Chartering, given its international clientele, is a business that lends itself well to an “Offshore” Corporate Structuring Plan. Here’s how it can/would typically work:
- The Vessel/s will be owned by (or the leases held in the name of) the/a tax free Offshore Company (“IBC”)
- The IBC should have in place a (nil tax jurisdiction domiciled) “Nominee” Director
- Your international clients will enter into an agreement with the said Offshore Company (which is commonly an “IBC” ie International Business Company)
- The situs of the agreement (ie the place at which the contract was formed and or services provided) will be deemed in the agreement to be Offshore
- Ideally all Charter contracts would be signed “Offshore” ie in a/the nil tax jurisdiction by the Nominee director
- The nil tax IBC will have a bank account Offshore ideally in a nil tax International Offshore Financial Centre
- You will want to set up a merchant account facility for your Company so clients can pay you by card (and also ideally by Paypal) as well as by bank wire if/as they may prefer
- Funds will ultimately be directed to the Offshore Company’s tax free bank account and receipted free of tax in the first instance
- The operating expenses can/will be paid from the Offshore account
- Your or your local company will be engaged by the Offshore Company to perform certain functions (eg client liaison, yacht sourcing, fleet maintenance, logistics management etc etc etc). This will enable you, as a contractor, to draw down some regular income (and as a Contractor, with a smart tax accountant, you should be able to rack up a stack of tax deductions enabling you to substantially lower the amount of tax that would otherwise be payable on this income). The rest of the profit would remain and or be reinvested Offshore potentially tax free (or be rerouted onshore as, non taxable, financing/debt transactions)
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
