Guatemala offshore companies are regular Guatemala companies which are used for conducting business outside of Guatemala. Unlike offshore jurisdictions where special laws are put in place to form legal entities such as IBCs, offshore trusts and LLCs, Guatemala does not have such laws. However, domestic companies are legally permitted to function like international business companies.

Setting up a limited company in Guatemala is a smart business move: access to large regional markets, tax sheltered incentives for business and a large pool of professionals. You can accomplish this goal by contacting a registered agent who specializes in financial services and can give advice on offshore strategies plus second citizenships. The aim is to build a comprehensive strategy for inheritance and succession planning. Very importantly with proper tax planning many financial benefits can be generated. Applications for second passports can be sent through licensed representatives who provide assistance.

A Guatemalan company which is used for offshore purposes somewhat benefits like an IBC, because, not only that Guatemalan companies can engage any type of legal trade internationally, but they are exempt from the taxes that regular local Guatemalan companies would be subject to. This is because Guatemalan taxes are not applicable to income earned outside Guatemala and consequently, Guatemala offshore companies are not liable to any such taxes.

The incorporation procedures for registering and forming a Guatemala offshore company are similar to those of offshore jurisdictions in that local lawyers who are licensed to offer incorporation services can be contacted and used to incorporate a Guatemala offshore company. The attorney of legal firm will guide the customer through the procedures for incorporating the offshore company in Guatemala and liaise with the relevant Guatemalan authorities. Certain documents which are required for incorporating a Guatemala offshore company will be requested and the necessary fees will be charged.

A Guatemalan offshore company is not obliged to be based in Guatemala but has the option of setting up a manufacturing site in one of Guatemala’s free trade zones where numerous exemptions from local Guatemalan taxes are given. A Guatemala offshore company which was incorporated with the intent to target Latin and North American markets can thus establish a production site in Guatemala and be able to benefit from having a physical presence near targeted markets. For such Guatemalan offshore company, this would translate into lower customs duties, lower operation costs and better chances of exploiting regional free trade agreements.

If desired Guatemalan offshore banking facilities are easier accessed while other offshore banking options exist nearby in other countries such as Panama and Belize which are premier offshore tax havens. A Guatemala offshore account in Guatemala for a Guatemala offshore company presents the advantage of easier and quicker fund transfer from one Latin American country to the other while being able to obtain immediate asset management and tax planning assistance.

Guatemala offers a level playing field for foreign and local entrepreneurs as both are able to access free trade zones, incorporate Guatemala offshore companies and are subject to the same fiscal and corporate regime. What this also means is that Guatemalan nationals are able to exploit the possibility of protecting their assets and lowering their taxes by using the asset protection and tax avoidance facilities of a Guatemala offshore companies. This offshore regime in Guatemala stimulates competitiveness and enterprise and better enables Guatemalan offshore companies which are established by local residents to trade in markets within the region. For the foreign resident and investor, the benefits are equally endless.

Guatemalan corporate entities which are available for use as Guatemala offshore companies include stock corporations, general and limited partnerships, limited liability companies (LLCs) and joint stock companies.