What is offshore financing? In fact, mainly through the capital market and money market. The most common are stocks and debt. But it can also be divided into endogenous financing and exogenous financing, which is not much different from domestic financing, but only the difference of development degree and supervision. The financing method has remained basically unchanged.
Advantages of overseas financing
According to China's current policy, the management policy of foreign-funded enterprises to borrow foreign debts is looser than that of domestic-funded enterprises, and foreign-funded enterprises can freely borrow foreign debts within the approved total investment and registered capital difference. In order to facilitate financing from abroad, many domestic-funded enterprises have invested abroad in various ways. For example, in 2004, Tianjin Shunchi Real Estate Company and Hebei Tianshan Real Estate Company were transformed into foreign-funded enterprises through "self-acquisition" and quickly established convenient international financing channels.
The well-developed offshore financial centers are British Virgin Islands (bvi), Panama, Cayman Islands and Bermuda. China SAR also promulgated the Offshore Law on June 5438+09965438+1October 3 1, which was formally implemented in mid-2000, hoping to make full use of Hong Kong's position as an international financial center and production base in the Mainland. These offshore financial centers have the following characteristics:
1, political and economic stability
Because overseas companies are mostly used to protect property, if the registered government is unstable, the company's property such as deposits may be confiscated or nationalized.
2. The financial industry is developed.
The information of banks and commercial activities is strictly protected by laws: for example, the laws of the Viking Island government, unless it involves a criminal offence of drug smuggling, the courts in Viking Island will not order the registered agents of relevant banks or companies to inform other governments or third parties of their customers' information; In addition, the register of directors and the register of shareholders of Virgin Islands companies are not public records, and no one else can obtain relevant information except the authorization of directors.
3. Adequate legal protection
As an overseas financial center, one of the key points is to protect investors' investment. Perfect legal protection and experienced courts and judges are indispensable. For example, the trust law in Jersey and the international business company law in Virgin Islands.
4. Non-residents have freedom of entry and exit, and there is no foreign exchange control.
Most overseas companies have no control over foreign exchange and capital circulation.
5. The tax regulations are relaxed, and the income tax from overseas sources is exempted or the tax rate is extremely low.
6. Most of them are members of the Commonwealth, and their legal system is common law system.