Professional services companies
Professional services companies are basically International (offshore) companies owned by professionals who desire to offer their services to foreign markets. The main reason of using professional services companies is to accumulate the bulk of the fee income in the name and the accounts of the International (offshore) business in a tax-free jurisdiction. This jurisdiction should ideally have a low corporate income tax rate, be part of the Double Taxation Treaties network, have a low VAT rate and tax exemption on dividend payments.
This type of structure is particularly popular among architects, engineers, designers, consultants, authors and even entertainers, and has another important advantage. In the case of professional services companies, as opposed to foreign investment funds , any potential liabilities deriving from a contract would fall upon the company itself and not the individual.