Offshore law firms are multi-jurisdictional law firms. These are legal entities in different countries. Their services mainly include providing offshore consulting, all issues related to international jurisdiction like international tax planning or global assets protection and wealth management. One can form or create offshore corporations, trusts, private foundations and or bank accounts in different countries. Let us learn more about this with the help of this article.
When conducting business internationally offshore companies are very helpful. It is easier for Client from different countries to conduct their businesses with an offshore law firm that knows their languages, customs, culture, local tax laws and basic legal system and general laws. Accordingly, the firm can provide custom-made solutions on the basis of the client’s needs. It is also easier to design business strategies internationally. One should be familiar with international rules and regulations, data privacy laws and exceptional financial practices. Offshore law firms also attract great opportunities and investment deals. “The final service provided by a global offshore law firm is assistance with relocating to another country. This entails providing immigration advice as to the best residency visas to apply for before or after entering the country as a temporary visitor. Which immigration visas are for permanent residency and which visas can lead to full citizenship are important areas of advice obtained from an offshore law firm.”
“An offshore corporation, or offshore company, is a company that is chartered under the laws of a country other than the U.S. These offshore jurisdictions, like the British Virgin Islands or the Cayman Islands, have special offshore company laws to encourage capital investment. The offshore company does not and should not conduct substantial business in the place where it incorporates, according to the Cayman Islands Companies Act, Chapter VII, Section 174. Commonly, the offshore company is called “business company”, under the BVI Business Companies Act, and it is named as “exempted company” under the Cayman Islands Companies Act. These companies are set offshore to avoid foreign currency control, to have a better condition for conducting cross-border mergers and acquisitions, lower management fees and regulations, and to gain more tax breaks, etc. The “company” refers to any LLCs, LLPs as well.”
India, Philippines, and China are the main hubs that provide outsourcing services to legal firms. Transferring operations of a firm from one country to another also reduces labour costs. However, many still wonder whether offshore law firms are viable options or not. There is a huge misconception that they can be risky. As stated earlier, one should be well-versed in privacy data issues – laws regarding the same in that particular country, different legal systems and regulations.
ADVANTAGES AND DISADVANTAGES:
- Cost Saving –In America and European countries, hiring a professional paralegal or litigator to perform certain legal tasks with respect to their field of knowledge costs a lot more compared to the lawyers of India. This enables law firms to hire offshore lawyers that too an affordable cost, which helps them to increase profit margins and improve business efficiency.
- Improved Work-Life Balance – When you try to manage everything on your own, you will be putting in additional efforts during the day and night too. Hiring a freelance attorney and outsourcing the legal back-office tasks will sort things out for you in a timely manner, helping you maintain your work-life balance.
- Get Hold of the Desired Cases – There are multiple times when you will require additional professional expertise to keep your clients satisfied. There is no need to refer such desired cases to others due to the unavailability of professional assistance. The reason is outsourcing lets you enjoy the professional expertise of an experienced attorney, making you get hold of the cases you like.
- Cultural Obstacles– Outsourcing legal work to the international market leads to cultural and language barriers that could affect communication between onshore and offshore teams.
- Hidden Costs– Most of the time, law firms face hidden cost difficulties while outsourcing, including employee turnover, quality control, vendor profit margins, or rising operating costs. You should ask your provider to provide you with a detailed list of their costs for your awareness.