1. The information of shareholders and directors of Hong Kong companies is open, while the information of shareholders and directors of offshore companies is confidential;

2. Hong Kong companies need annual review and tax returns every year, while offshore companies don't need annual review and tax returns, and they only need to pay annual fees to maintain their existence;

3. In cancellation, Hong Kong companies have to pay certain fees and submit audit reports. Offshore companies will automatically cancel if they are not managed.

Extended data

superiority

1 economic integration

Registering overseas offshore companies has become a shortcut for enterprises to go abroad and carry out transnational operations.

2. Tax exemption treatment

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. However, if an enterprise owns an overseas offshore company, which exports products to the offshore company, and then the offshore company exports to developed countries such as the United States, it can get tax-free treatment by bypassing tariff barriers and successfully bypass export quota restrictions.

3. Bypass foreign exchange management

Bypassing foreign exchange management, it is convenient to attract foreign investment. Generally speaking, it is relatively simple and convenient to register an offshore company, and then carry out overseas financing in Hong Kong or Singapore in the name of the company and list on the second board.

Moreover, because the capital transfer of offshore companies is not subject to too many constraints, the company is also very convenient in the use of funds. Many companies listed in this way simply put the funds raised in overseas capital markets in overseas offshore companies first, and then remit them back to China one by one according to the specific needs of domestic enterprises.

4. The legal environment is relaxed and the confidentiality is good.

The legal environment is relaxed and the confidentiality is good. The British Virgin Islands, Cayman Islands and Bermuda are partially autonomous British colonies, and their company laws are based on the British Business Company Law. The company's information about shareholders and directors is confidential and does not need to be disclosed to the public. The relaxed legal environment and high confidentiality of the company's business fully guarantee the safety of listed companies and greatly reduce various risk factors.

5. Tax incentives

Tax incentives. Offshore companies usually have no 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%), and some even exempt from inheritance tax. The company only needs to pay a fixed fee to the local government every year.

6. Quick establishment and convenient registration.

The company was established quickly and registered conveniently. The registration procedure of offshore companies is very simple, which is completed by a professional registration agency, and the registrant does not need to go to the place of registration in person. Generally, it only takes 1-2 days for local governments to approve the establishment. The company has simple establishment procedures and low cost. Usually, at least one shareholder and one director are needed, and shareholders can set up an overseas company by purchasing one share.

7. Simple and flexible management

Company management is simple and flexible. Offshore companies don't need to hold annual general meeting of shareholders and board of directors, even if they do, they can choose their place at will, which gives them greater freedom. Shareholders of a company can be individuals or companies, and they can buy shares of the company in a non-cash way. Companies can issue different grades of shares to shareholders, such as preferred shares, callable shares, bearer shares, etc. There will be some differences in overseas companies established in different locations.

8. 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 reputation and facilitate curve listing.

For example, mutual recognition of listing qualifications in Britain and the United States. If you register a company in Mu Bai University, it will be very convenient to enter the Hong Kong stock market.

9. 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.

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

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.

References:

Baidu Encyclopedia-Offshore Company