What are the advantages for domestic enterprises to set up offshore companies?

In the past ten years, offshore companies have been one of the most popular and popular choices for establishing international business.

The advantages of establishing an offshore company are: first, enhancing corporate image and developing international business.

Offshore companies are truly international companies, so it is also a shortcut for enterprises to go out, enhance their international image and develop transnational business. Especially in an offshore jurisdiction with high reputation in related industries, it is the best choice for enterprises.

Second, tax planning reduces operating costs.

Most offshore jurisdictions do not need to establish local financial accounts and submit financial statements. However, in all offshore jurisdictions, offshore companies are exempt from income tax, stamp duty and many other taxes to varying degrees, and only need to pay a very low annual fee. The accumulated surplus of offshore companies can be retained indefinitely, while others are exempted from capital gains such as dividends or bonuses, which obviously greatly reduces the operating costs of enterprises. Therefore, the establishment of offshore companies has become their first choice for tax planning.

Third, it is to bypass tariff barriers and develop international trade.

In the case of tariff barriers between the country where the enterprise is located and the country where the product is marketed, the export of products to the country where the product is marketed requires a series of related procedures, such as applying for quotas, which requires considerable costs. However, if an enterprise owns an overseas offshore company, and the enterprise exports its products to the offshore company, and then the offshore company exports to the product marketing country, it can successfully bypass the export quota restrictions and tariff barriers, so that its products can smoothly enter the international market.

Fourth, set up a holding company to conduct international investment and financing.

Offshore companies are often regarded as the core link of overseas listing financing. By setting up overseas offshore companies as holding companies, holding companies invest and finance overseas branches or related enterprises. For example, holding domestic enterprises indirectly go public abroad for financing, and by choosing to apply a more relaxed legal system abroad, we can avoid many restrictions on the application of domestic laws because of direct listing abroad or listing in China.

Fifth, it is to ensure the safety of property and facilitate overseas immigrants.

Undoubtedly, property safety is the primary consideration for investors. Through the investment of offshore companies, high-asset people can spread the risk of assets and even increase the value of personal assets. At the same time, it is also convenient for investors to emigrate overseas.

6. Keep shareholder information completely confidential.

Offshore companies have the characteristics of highly confidential shareholder information, and their foreign investment is not bound by relevant laws and regulations. Therefore, offshore companies are not only beneficial to international investment, but also can effectively ensure the safety of investors.

Seven, to provide convenience for enterprises to hire foreigners.

Offshore companies can also be used as a tool to recruit overseas employees, which can reduce the tax and social security payment burden of company bosses to some extent.

Eight, convenient registration procedures and low cost.

The registration procedure of offshore companies is very simple, and the registrant does not need to go to the place of registration in person, but it can be completed by a professional registration agency.

If you have any other questions about offshore companies, you can consult Hong Kong Cigna Zhongchuang Enterprise Consulting Co., Ltd.