Why a company would choose to register offshore

Keyray replied:

The main thing about opening an offshore account is to have your own company and your own brand.

Advantages of an offshore company.

1. The collection and use of foreign exchange is free and there is no restriction.

2. Funds can be used without write-off.

3. The company can plan reasonably and avoid taxes.

Fourth, the registration time is fast, generally only a dozen working days.

Fifth, the company's maintenance cost is low, the company's account is an overseas account, and it is not subject to foreign exchange control in the mainland.

6. Shell companies are allowed to exist without employees.

7. The company's account can be opened in mainland China or Hong Kong.

8. The company name is free, not subject to geographical restrictions, and the brand effect is obvious.

9. Tax rebates can be paid for without considering tax rebates, and only the intermediate price difference can be earned.

Hello, there are more and more options for offshore companies, in recent years, many enterprises have chosen to register offshore companies, and its advantages mainly include:

1. The registration cost is low, and there is no requirement for shareholders and directors.

2. It is very simple to manage, and it is managed once a year.

3. There is no need to pay taxes on accounts, and the local taxes are relatively small and the tax rate is relatively low.

4. Accounts opened in China can receive and pay foreign exchange freely, and there is no foreign exchange control.

5. There is no business restriction and can operate any legal business.

6. Offshore registration can be very convenient for overseas listing or returning to the domestic bank investment.

1. Some countries provide non-residents with companies registered in their own countries and let them operate overseas (offshore), which generally become offshore companies.

In recent years, some countries and regions in the world, such as the British Virgin Islands (BVI) offshore company registration, the Cayman Islands offshore company registration, the Bahamas, Bermuda, etc. (most of which are island countries) have formulated and cultivated some particularly liberal economic zones by means of legislation, allowing international persons to set up an international business company in their territory, which are generally called offshore jurisdictions or offshore jurisdictions. The so-called offshore company registration generally refers to a limited liability company or international business company established in an offshore jurisdiction.

2. The meaning of offshore means that the investor's company is registered in an offshore jurisdiction, but the investor does not need to visit the local area, and its business operations can be carried out directly anywhere in the world. For example, a company is registered in the Bahamas, but its business transactions can be between Europe and the Americas.

3. Many of the famous offshore jurisdictions are former British colonies, such as the Cayman Islands, Anguilla, British Virgin Islands, etc., so these areas retain the British legal system and judicial system on a large basis.

4. Compared with the general ****, the main difference between offshore company registration is in taxation. Unlike the usual practice of levying taxes on turnover or profits, offshore jurisdictions** only levy an annual management fee on offshore companies, and no other taxes are levied. In addition to tax incentives, the confidentiality of company information is also a major advantage of offshore companies, which is expressly stipulated in almost all offshore jurisdictions:

The company has the right to keep confidential the information of shareholders, equity ratio, income status and other information, and if shareholders are unwilling to disclose it, they can not disclose it to the public. Another advantage of offshore companies is that they are recognized by almost all major international banks, such as Chase Bank in the United States, HSBC in Hong Kong, Development Bank of Singapore, Crédit Agricole CIB in France, etc. Offshore companies can be opened in these banks, which is extremely convenient in terms of financial operations.

5. Generally, such offshore regions and countries maintain good relations with developed countries in the world. As a result, overseas offshore company registration is a financial tool often used by many large multinational corporations and individuals with high assets. A considerable number of companies wishing to list in the international capital market achieve their financing purposes through the establishment of overseas offshore companies as a financial instrument.

Nowadays, more and more people are engaged in the wave of entrepreneurship, it is not difficult to find that many companies will choose to register offshore companies, specifically, if you are just to save money, you can consider registering a Hong Kong company, because Hong Kong company registration is cheaper, and the maintenance cost is also low because it is more convenient to be close. However, if it involves listing, investment, mergers and acquisitions and other issues in the future, it is recommended to choose BVI, Cayman. Most of the companies we are familiar with, from Country Garden and Shimao Real Estate in the real estate industry, to sports brands Li Ning and Anta, to Internet giants such as Alibaba and other Internet giants, many well-known companies are registered enterprises in the Cayman Islands.

So, what are the uses and advantages of registering an offshore company? MANDE Enterprise Service introduces you to you.

Purpose: 1. L/C to directly undertake orders from foreign customers (buyers) in the name of offshore companies;

2. Most offshore companies' overseas profits are completely tax-free;

3. Profits can be legally transferred;

4. Avoid exchange rate risk and have autonomy;

5. Open international credit cards, invoices and accounts in the legal capacity of an offshore company, and keep them confidential for investors;

6. Funds can be circulated and operated in various countries, which is convenient for import and export, foreign investment;

7. Most offshore companies can hide the information of investors. For example, archipelago companies (Cayman companies, BVI companies, Seychelles companies, etc.) protect the interests of private offshore companies.

Advantages: 1. Freely receive foreign exchange and avoid foreign exchange control.

2. There are few types of taxes and low tax rates, so it can be reasonably avoided.

3. There are very few information disclosure requirements and relatively strict confidentiality regulations, which is conducive to enterprises maintaining business operation secrets.

4. Mature judicial system and business environment.

5. Low operating costs, such as no need to attend the shareholders' meeting every year.

6. Carry out overseas red-chip private placement, and then list in the United States, Hong Kong, Singapore and the United Kingdom.

7. Cross-border mergers and acquisitions.

8. Set up a holding company and carry out capital operation.

Warm reminder, there are indeed many benefits of registering an offshore company, but it should also be determined according to the operation of your company, and you must not blindly register before you understand what benefits the offshore company will bring to yourself, which may be counterproductive.

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1. Used as offshore ** business.

A registered offshore company can trade with its own account or as a counterparty. The Hong Kong company is a very important re-invoicing center, where a local or registered offshore company first imports the goods with a certain ** and then resells the goods to the end customer with a relatively high **.

In the vast majority of cases, the shipment of goods is a direct activity between the seller and the end customer, while the registered offshore company only acts as an intermediary to handle the documents. Tax-free profits will be made in this way. Under normal circumstances, this type of transaction is done by means of a split letter of credit or a negotiable letter of credit opened by the buyer to a registered offshore company, and then transferred by the registered offshore company to the seller.

It is important to be careful when using this type of transaction, as the markup of the re-invoiced company is likely to have a direct impact on the total amount of import duties payable in some countries. In addition to this, be sure to consider the cost of setting up and running a business. Often, the tax reduction will significantly outweigh the additional costs required.

A Hong Kong company is an ideal place to set up an international business as it is an exclusive jurisdiction and the use of taxes, principles, communications, banking and freight are all recognized by many countries.

It is used as a tax deduction for investment.

Registering an offshore company can be used to hold investments and accumulate for free**. Banks in offshore centres essentially settle interest on the gross value and manage accounts in major currencies. All offshore finance (including Hong Kong companies) is not taxed on capital gains.

High-tax countries such as Australia, Japan and the United Kingdom do not levy capital gains tax on non-residents, so investments held by a registered offshore company will be exempt from tax, but dividends remitted from these countries to a registered offshore company will be subject to withholding. In the case of high dividend income, it is basically possible to take advantage of the preferential tax policies between different jurisdictions to reduce the tax cost of withholding income.

3. For intellectual property planning.

A registered offshore company can carry out the purchase of intellectual property rights, such as copyrights, patent rights, or know-how and ancillary licenses. If these property rights have the potential to increase in value, then it is also feasible for them to be incorporated into offshore entities. Given that royalties are largely withheld in high-tax countries, some degree of planning and use of tax treaties is essential.

The act of registering an offshore company to return to China to establish a company, also known as "return investment", refers to the direct investment activities carried out by domestic residents in China through special purpose vehicles, which is usually manifested in the purchase and replacement of the Chinese equity of a domestic enterprise, the establishment of a foreign-invested enterprise in China, and the purchase or control of domestic assets through the enterprise, the purchase of domestic assets by agreement, and the establishment of a foreign-invested enterprise and the increase of capital to the domestic enterprise through the investment of the asset. With the continuous development of the economy, more and more enterprises are using this model.

The performance of round-trip investment in recent years is basically related to cross-border tax avoidance. Usually, the process of back-trip investment will involve one or more layers of shell companies, accompanied by complex related capital transactions, but in fact, the ultimate controller of the relevant capital or equity is still the domestic resident. Domestic investors usually choose Hong Kong or other international tax havens as the place of registration of overseas affiliated enterprises.

As a special phenomenon in the process of attracting foreign investment in the mainland, round-trip investment has always attracted much attention.

The history of return investment can be traced back to the beginning of reform and opening up. Early round-trip investments were manifested as the actual cross-border movement of monetary funds.

With the development of the times, especially the rise of overseas holding companies, round-trip investment is increasingly manifested in cross-border mergers and acquisitions, especially the cross-border transfer of domestic capital rights and interests, and some people even call it the "foreign capital movement of domestic enterprises".

Round-trip investment involves many aspects such as foreign investment policies, capital market development, tax system reform, capital project management, etc., and is also the result of the interaction of these aspects.

Further information: There are four main ways for foreign investors to invest in China.

1. Permanent representative offices of foreign enterprises in China.

A representative office is not an independent legal entity, and can only conduct product display, market research, scientific and technological exchanges, or other non-profit business activities in China. Therefore, the representative office often acts as a liaison office to carry out activities of the nature of "throwing stones and asking for directions", and carry out basic work for the establishment of a WFOE in the future.

2. Wholly foreign-owned enterprises.

In the form of ****, the company is fully controlled by foreign capital and is an independent legal entity, which can engage in approved business activities and issue tax invoices. Therefore, this method is the most commonly used way for foreign capital to enter China.

3. Branches.

The so-called branch is a branch. A branch is an unincorporated entity, and its legal liabilities and creditor's rights and debts are mainly borne by the foreign head office. However, due to the fact that Chinese law has no extraterritorial effect, the requirements for this type of investment activity are relatively strict (according to the regulations, this type of approval authority is in ***, which is common in the banking and insurance industries).

4. Sino-foreign joint ventures and cooperative enterprises.

That is, the establishment of an enterprise by both parties is mainly divided into two ways, Sino-foreign joint ventures (EJV) and Sino-foreign cooperative joint ventures (CJV), which are mainly different in terms of investment and joint management.

The above are the relevant advantages and reasons for registering an offshore company, if you still have any questions, you can continue to consult me, looking forward to getting you

Hello, landlord!

First of all, to answer your question, what is an offshore company, an offshore company is a company registered in the offshore business jurisdiction, and a company that does not operate there is a place of incorporation. As mentioned on the first floor, the main thing is that your place of business and place of registration are separated, and you can enjoy the tax and foreign exchange benefits of offshore operations!

The second question: In fact, the first floor is also very well answered, the world's more famous offshore company registration places are: Hong Kong, BVI Seychelles, Cayman, Bermuda, Marshall, New Zealand, New York, the United Kingdom, Delava, the United States They can all register offshore companies!

Take Hong Kong as an example, domestic people can register Hong Kong offshore companies in the country, and the profits generated in China and Hong Kong do not need to pay any taxes, for personal SOHO foreign trade and enterprises to do exports, the help is particularly great, in addition to Hong Kong companies can be in the domestic Pudong Development, Shenzhen Development, transportation, China Merchants and other banks can open offshore accounts!

What is an offshore company

An offshore company generally refers to a limited liability company or shares established in an offshore jurisdiction. There is no tax on such companies, only a small annual management fee is charged, and at the same time, all major international banks recognize such companies to facilitate the establishment of bank accounts and financial operations. It has the three characteristics of high confidentiality, tax burden reduction and exemption, and no foreign exchange control.

The main roles and benefits of registering an offshore company in general:

1.It is used to do foreign trade, and it is convenient to receive foreign exchange and settle foreign exchange after opening an offshore account through an offshore company.

2.It is used to avoid taxes reasonably. Some countries and regions have heavier taxes, so they choose to transfer the tax to the offshore company after registering an offshore company, and many countries of offshore companies stipulate that they do not need to pay taxes if they do not operate locally, such as Hong Kong companies, British companies and some island companies can be used to avoid taxes reasonably.

3.Utilize offshore companies to list overseas. Due to the strict review of domestic listing, it is difficult for large companies to obtain financing opportunities for domestic listing, so domestic companies have set their sights on offshore companies, and registered an offshore company overseas in the name of a domestic company and listed locally, and the foreign listing environment is very free, and the review is also very simple.

For example, Mengniu was listed there after registering the company in the BVI, which saved a lot of time and process and costs.

4.After registering an offshore company, the information of shareholders and directors is generally about the same, and it is not governed by domestic laws, so some investors register an offshore investment company to invest in China, saving a lot of legal risks.

5.Take advantage of the international reputation of offshore companies to build an international large company.