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What is an offshore company and what is an offshore operation?
1. Develop transnational business and enhance corporate image.

Nowadays, the world economy is becoming more and more integrated, and business is increasingly showing the trend of cross-border development. Enterprises often use transnational operations to enhance their strength and expand their business fields. The registration of offshore companies is a shortcut for enterprises to go abroad, carry out transnational operations and enhance their international image. The establishment of multinational corporations and group companies can not only improve their image, but also bring better economic benefits. Moreover, when signing some contracts, project negotiation often needs the cooperation and participation of overseas companies, which is an indispensable factor to improve your corporate reputation and successfully achieve the purpose of negotiation. It turns out that the development of local companies in China is subject to various restrictions. Overseas registration can facilitate capital reorganization and separation, such as separating the good from the bad. , improve credibility, but also conducive to curve listing, such as mutual recognition of listing qualifications between Britain and the United States. If you register a company in Mu Bai University, it will help you to enter the Hong Kong stock market.

2. Promote international trade and avoid tariff barriers.

Enterprises need to apply for quotas and other related procedures to export products to the United States, and the cost is higher than 1 to 2 times. If an enterprise owns an overseas offshore company, and the enterprise exports products to the offshore company, and then the offshore company exports to the United States, it can get tax-free treatment by bypassing tariff barriers and successfully bypass export quota restrictions.

When registering a company in a country or jurisdiction that has no bilateral tax treaty with the country of origin, it avoids high taxes in the country of origin, while the place of registration has no or very low taxes. For example, many such places have no corporate tax at all, and there is no value-added tax (turnover tax).

For foreign individual investors, personal income, whether in the contracting state or non-contracting state of bilateral tax treaties, only needs to provide the status of "overseas residents", or some countries have no income tax regardless of domestic and overseas people.

If the company operates in an intermediate country and uses the special tax system of the source country, even if the company is still registered in the source country, the actual operation is realized in overseas countries and regions, but it is not necessarily taxed on both sides. The key at this time is where your hometown is.

Countries and regions with the above advantages are mostly western camp countries, big countries in Europe and America or countries and regions belonging to Europe and America, with long-term political stability and political neutrality like a paradise, and some countries and regions have never experienced a world war or wars of various scales; The judicial system and social culture, as well as the modern tradition of financial and economic service system, banks and insurance companies from big European and American countries are waiting to serve you there.

3. Avoid foreign exchange management, facilitate attracting foreign investment and strengthen overseas financing capacity.

As we all know, the foreign exchange system and overseas listing system are very strict, and there are many human factors that directly affect the international financing of enterprises. Instead of waiting for a long time for qualification examination and approval, it is better to register an offshore company and conduct overseas financing and listing in its name, so as to achieve twice the result with half the effort. Because there are no restrictions on the transfer of funds by offshore companies, it is also convenient for companies to use funds. Through overseas companies, you can directly apply for local commercial or project loans; Or directly or indirectly listed overseas to achieve the purpose of financing for enterprises; In other words, overseas companies will play an inestimable role when domestic parent companies raise funds overseas.

4. The registration procedure is convenient, open and low cost.

The registration procedures of offshore companies are very simple, and can be completed by professional registration agencies. The registrant does not need to go to the place of registration in person, nor does it need to transfer funds to foreign companies after registration, nor does it need to verify capital every year. These are beyond the power of a country like Chinese mainland. In some countries, you can just register, sit idle and have no actual office, which is great for those who just want to use it to reduce expenses. The annual expenses of such idle companies are generally only the handling fee for reporting to the authoritative department.

5. Legal tax avoidance, reducing the financial and tax burden.

All offshore jurisdictions stipulate to varying degrees that the operating income and profits obtained by offshore companies are exempt from local taxes or paid at a very low tax rate (such as 1%). Some even exempt from inheritance tax. You can use overseas companies to arrange taxes and avoid taxes reasonably and legally. All overseas companies have tax reduction and exemption policies, which save you considerable tax burden every year. If the country where the registered company is located has a bilateral tax contract with the country of origin of the original company, there will be an opportunity to delay overseas profits or reduce prepaid taxes.

6. Simple company management

Offshore companies do not need to hold annual shareholders' meetings and board meetings. Even if they do, their location can be chosen at will. With simple management procedures, they can go into battle lightly and devote all their energy to the operation and management of the company.

7. Company registration information and documents are highly confidential.

To register a company in some overseas countries, you don't have to be a citizen of this country, but foreigners can also register a company. In order to attract foreign enterprises to register, many maritime island countries stipulate that the share capital composition, director list and even the company's operation of local registered companies can be kept confidential, which makes the company's situation highly confidential. If a company has legal disputes with investors in the course of its operation, it can often evade some responsibilities. Information such as shareholders' status, directors' list, shareholding ratio and income status of overseas offshore companies is highly confidential and protected by law, so the public cannot access it. Only trust management companies legally qualified to supervise the import of offshore companies can have access to the company's background information. At the same time, the law prohibits trust management companies from disclosing relevant materials at will.

8. There are no restrictions on business scope and geographical scope.

Except for a few restricted industries such as banking, insurance and military industry, the business scope of offshore companies is almost unrestricted. In addition to the registered area, the company can conduct business and management in any country and region in the world.

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

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

10. Overseas expansion and reverse investment of enterprises

Integrate their own development with the international market, or participate in international competition to seek the further development of enterprises; China's accession to the WTO has also created conditions for individuals and enterprises to develop overseas. The establishment of overseas companies can also invest in the mainland, become foreign-funded enterprises or joint ventures, and enjoy the advantages of foreign investment and production and marketing.

Entering a market like China in the name of an overseas company also has a special function of protecting its own interests. Foreign-funded companies registered and invested in China are more relaxed in terms of access, withdrawal and share conversion, which is a meaningful curve defense operation for those who need to withdraw safely after making profits. This is especially true for countries with political instability or where people rule more than the rule of law.

1 1. Have international brands and improve enterprise efficiency.

According to the characteristics of the company's products, the registered places of overseas companies, such as high-tech industries, instruments, equipment, health food, cosmetics, clothing and other well-known manufacturers are mostly American companies. If a company is established in the United States, it will be authorized to produce in Chinese mainland/Hong Kong/Southeast Asia in the name of an American company. Not only improved the product image, but also increased the added value of sales.

12. promoting foreign exchange settlement and letter of credit negotiation

You can not only open accounts abroad, but also open offshore account in foreign banks: savings account, checking account, letter of credit account, telephone banking account, etc. You can freely settle, exchange and withdraw cash.

13. Immigration and visa facilitation

As a shareholder (equity, property, assets) of an overseas company, I will provide you with legal proof. Legal representatives of overseas companies can easily travel to and from international countries, because these overseas registration places generally belong to Britain, the United States, France and Germany, and it is logical to hold their visas to go to big countries.

14. Protect priceless assets by registering trademarks and holding the copyright of offshore companies.