Domestic investors can make use of the structure of offshore companies to transfer monetary capital or equity abroad, and then reinvest it in the economy as direct investment, so as to meet the preferential policies of the destination government for foreign investment, accelerate the return of funds and expand income.

2. Conduct international trade

The most common use of establishing companies in low-tax areas is international trade. The introduction of overseas companies in international trade can get the opportunity of substantial tax reduction. If a company wants to produce products in one country and then sell them to another country, the profits generated can be accumulated in overseas companies.

In countries with foreign exchange control, the establishment of offshore companies is conducive to the balance of payments and the use of international cash management tools to achieve better capital operation efficiency. In addition, the procedure of setting up an offshore company as an intermediary is relatively simple.

3. International capital operation is convenient for overseas listing.

Overseas listing is an important purpose for overseas companies to operate international capital. Because offshore companies are easy to register and can avoid the examination and approval procedures of their own governments, a mature overseas listing operation mode has been formed in offshore areas such as Cayman, and perfect service institutions such as lawyers, accountants and investment banks have gathered.

Moreover, because international venture capitalists are more familiar with cooperation modes such as limited partnership, offshore companies are more convenient for international financing than domestic ones; At the same time, using the relatively simple legal framework of offshore companies and sufficient local investment bank resources offshore is more conducive to the company's transactions.