The primary benefits often include tax optimization, asset protection, confidentiality, and access to a more business-friendly legal system. However, it's essential to note that tax laws vary by country, and what might be legal tax avoidance in one country could be seen as illegal tax evasion in another.

An offshore holding is a legal entity established in a jurisdiction outside of the country of residence, typically in a low-tax or no-tax jurisdiction (often referred to as a tax haven). These are generally set up to legally optimize tax payments, ease international business dealings, and provide an additional layer of privacy.

Setting up an offshore holding typically involves the following steps: deciding on the jurisdiction that best fits your needs, choosing a company name, appointing directors and shareholders, preparing the necessary legal documents, and registering the company with the relevant local authority. It's recommended to seek legal and financial advice before proceeding.

Typically, you need to provide details like the intended company name, a physical address in the country of registration, details of the company directors and shareholders, and the business' nature. Some jurisdictions might require additional information or documentation.

While most jurisdictions allow foreign individuals or entities to register offshore holdings, some restrictions might apply depending on the jurisdiction. For example, certain countries may restrict residents from establishing offshore companies. Always check with a legal professional to understand the laws applicable to your situation.

Yes, offshore holdings are legal as long as they are used for legitimate purposes such as business financing, mergers and acquisitions, and estate or tax planning. However, they must be properly declared to the tax authorities in your home country. Misuse of offshore holdings for tax evasion or other illicit activities is illegal.