What is an offshore company and what is the offshore operation?

1． Develop transnational business and enhance corporate image

Today's world economy is becoming increasingly integrated, and business is increasingly showing a cross-border development trend. Enterprises often use transnational operations to enhance their strength and expand their business areas. Registering and establishing an overseas offshore company is a shortcut for companies to go global, conduct transnational business, and enhance their international image. The establishment of multinational companies and group companies can not only better improve the image and bring better economic benefits. And when signing certain contracts, project negotiations often require the cooperation and participation of overseas companies, which is an indispensable factor to improve the credibility of your company and successfully achieve the purpose of negotiation. It turns out that local companies are subject to various restrictions on their domestic development. Registering overseas can facilitate capital reorganization and separation, such as eliminating the rough and extracting the essence, separating the good from the bad, etc., improving their credit standing, and also facilitating curve listings, such as the mutual recognition of listings between British and American countries. Qualifications, etc. If you register a company in Baimuda, it will be easier to enter the Hong Kong stock market.

2. Facilitate international trade and avoid tariff barriers

A company exporting products to the United States needs to apply for quotas and a series of related procedures, which costs one to two times more. And if the company owns an overseas offshore company, and the company exports products to the offshore company, and then the offshore company exports to the United States, it can bypass tariff barriers and obtain tax-free treatment, and successfully bypass export quota restrictions.

When registering a company in a non-double tax treaty in a country or judicial district that does not have a bilateral tax treaty with its country of origin, it avoids the high taxes in the country of origin, while the place of registration has no or very low taxes, such as Many of these places have no corporate tax at all, no VAT (turnover tax).

For individual overseas investors, whether they are in a contracting country or a non-contracting country to a bilateral tax treaty, their personal income is as long as the status of "overseas resident" is provided, or some countries do not care whether they are domestic or foreign residents. , there is no income tax.

If you operate in an intermediate country and take advantage of the special tax system of the source country, even if the company is still registered in the source country, but its actual operations are in overseas countries and regions, you may not pay taxes on both sides. The key here is where your country of origin is.

Most of the countries and regions with the above advantages are Western camp countries, European and American powers or countries and regions affiliated with Europe and the United States. They have long-term political stability and political neutrality like a paradise. Some countries and regions have never experienced a world war. Or large or small wars; the judicial system, social culture, and financial and economic service systems are both modern and traditional. Banks and insurance companies from major European and American countries are waiting there to serve you.

3． Avoid foreign exchange management, facilitate investment introduction, and strengthen overseas financing capabilities

As we all know, the foreign exchange system and overseas listing system are very strict, and there are also many human factors, which directly affect the international financing of enterprises. . Instead of waiting for protracted qualification review and approval, it is better to register an overseas offshore company and conduct overseas financing and listing in the name of the company to achieve twice the result with half the effort. Since there are no restrictions on the transfer of funds by overseas offshore companies, it is also very convenient for the company to use funds. Through overseas companies, you can directly apply for relevant business or project loans locally; or you can directly or indirectly list overseas to achieve the purpose of financing your company; or when your domestic parent company raises funds overseas, overseas companies will play an immeasurable role.

4. The registration process is convenient, open, and low-cost

The registration process for offshore companies is very simple. It can be completed by a professional registration agency. The registrant does not need to visit the registration place in person, and there is no need to transfer funds to the bank after registration. Foreign companies do not need to verify their capital every year. These are far beyond the reach of countries like mainland China. In some countries, you can just register, you can run it idle, and you don't have an actual office. This is perfect for those who just want to take advantage of the form and reduce expenses. The annual cost of this kind of idling company is generally just the handling fee for reporting to the authorities.

5. Legal tax avoidance, reducing financial and tax burdens

Some offshore legal areas have stipulated to varying degrees that the operating income and profits obtained by offshore companies are exempt from paying local taxes or at a very low tax rate (such as 1% )pay. Some are even exempt from inheritance tax. Overseas companies can be used to properly arrange taxes and avoid taxes reasonably and legally. All overseas companies have reduction or tax exemption policies, which can save you considerable tax burden every year. If there is a double tax treaty between the country where the registered company is located and the country of origin of the original company, there is an opportunity to defer or reduce the prepayment tax on overseas profits.

6． Simple company management

Offshore companies do not need to hold shareholders’ meetings and board of directors every year. Even if they are held, the location can be chosen arbitrarily. The management procedures are simple, so you can go into business lightly and devote all your energy to the company’s operation and management. .

7． Company registration information and documents are highly confidential.

To register a company in some overseas countries, you do not have to be a citizen of that country. Foreigners can also register a company.

In order to attract foreign companies to register, many oceanic island countries stipulate that the share capital composition, director list and even the company's business conditions of locally registered companies can be kept confidential. This makes the company's status highly confidential. If the company has any conflicts with investors during its operation, In legal disputes, certain responsibilities can often be avoided. Overseas offshore companies’ shareholder identities, director lists, equity ratios, income status and other information are highly confidential and protected by law. The public cannot review them. Only trust management companies that have legally obtained the qualification to supervise the import of offshore companies can review the company’s background. At the same time, the law prohibits trust management companies from arbitrarily leaking relevant materials to the outside world.

8． No restrictions on business scope and regional scope

Except for certain restricted industries, such as banking, insurance, military, etc., there are almost no restrictions on the business scope of overseas offshore companies. In addition to the registered region, the company can conduct business and operate in any country or region in the world.

9. There are no restrictions on investors, shareholders, and directors

There are no restrictions on the nationality, age, assets, etc. of shareholders and directors. Most "offshore" areas can accept legal persons as company directors

< p>10. Enterprises expand overseas and reverse investment

Integrate their own development with the international market, or participate in international competition and seek further development of enterprises; China's accession to the WTO has also become an opportunity for individuals and enterprises to develop overseas and create conditions. When establishing an overseas company, you can also invest in the mainland and become a foreign-invested enterprise or joint venture, enjoying the treatment of foreign investors and the operational advantages of production and sales.

Entering a market like China in the name of an overseas company also has the special function of protecting one's own interests. The registration and investment shares of foreign-funded companies in China are relatively loose in terms of entry, exit, and share transfer. Curve defense operation is very meaningful for people who need to exit safely after making profits. This is especially true for countries with political instability or more rule of thumb than rule of law.

11. Own an international brand and improve corporate efficiency

Choose an overseas company registration location based on the company’s product characteristics, such as: high-tech industries, instruments, equipment, health foods, cosmetics, and ready-made clothing Most of the well-known manufacturers are American companies. If a company is established in the United States, it will be authorized to produce in the name of the American company in mainland China/Hong Kong/Southeast Asia and other places. It not only improves the product image, but also increases the added value of sales.

12. Convenient foreign exchange settlement and letter of credit bill transfer

Not only can you open an account overseas, you can also open an offshore account in a foreign-funded bank abroad: savings account, checking account , letter of credit account, telephone banking account and other free settlement, exchange, cash withdrawal, etc.

13. Immigration and visa convenience

As a shareholder (equity, property, assets) of an overseas company, we provide you with legal proof. Legal representatives of overseas companies can travel to various countries in the world conveniently, because these overseas registration places are generally countries affiliated with Britain, the United States, France and Germany. With their visas, business travel to major countries is a matter of course.

14. Use offshore companies to register trademarks and hold copyrights to protect priceless assets