Financial privacy, business expansion and asset protection among many other reasons lead t formation of such companies. Others are formed for the purpose of saving on taxes levied which depends on the jurisdiction in place; this is efficient in countries where the government levies high taxes on businesses which are operated on corporate basis. Confidentiality of the setup makes it very preferable to those who need to have their privacy. But the advantages of offshore business incorporation extend far beyond just reduced taxation. The other major advantage of offshore company formation is favourable regulation in jurisdictions abroad. This is especially relevant for firms looking to manage risk and reduce costs associated with bureaucracy. The global financial crisis has seen a backlash against financial markets, which has resulted in increased regulation across the board in many markets. In this environment, offshore financial centers can act as the perfect base for firms constrained by regulation. For instance, offshore firms can use deregulated markets to invest in financial products that help them manage risk better. The most notable benefit is the 12.5 percent tax rate for corporate trading profits. Currently, the United States corporate tax rate is 39.1 percent. This is a significant savings from which 40 million Americans with Irish descent could potentially benefit. Many Americans incorporate Irish company for this reason.