1, economic integration

Registering an overseas offshore company has become a shortcut for enterprises to go global and carry out transnational business.

2. Tax exemption treatment

To export products to the United States, an enterprise needs to apply for quotas and a series of related procedures, which costs one to two times more.

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 overseas offshore company and then conduct overseas financing and listing on the second board in Hong Kong or Singapore in the name of the company.

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

British Virgin Islands, Cayman and Bermuda are partially autonomous British colonies, and their company laws are based on the British Business Company Law.

5. Tax concessions. Offshore companies usually don't have any tax burden. All offshore jurisdictions stipulate to varying degrees that the operating income and profits obtained by offshore companies are exempt from local tax or pay 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.

Disadvantages:

1, LC,D/P negotiation is prone to discrepancies.

The well-known reason for offshore companies is that they cannot provide the most commonly used negotiation documents in LC, such as FORM A,C/O and embassy certification. It is easy for unnecessary risks to appear in the list with strict requirements for LC, D/P and other documents.

2. Write-off Doc cannot be provided.

Although an offshore company can successfully open an account in a domestic bank, it is still an overseas company and has not made a record in the domestic industrial and commercial tax. Therefore, an offshore company cannot provide verification forms, customs declarations and export declarations.

Extended data:

For people with high personal asset value, overseas investment can be used to achieve the purpose of diversifying asset risks. On the one hand, offshore companies and offshore trusts can protect the privacy of beneficiaries, on the other hand, they can serve as convenient channels for investors to enter overseas investment markets. The rational use of offshore structure can get tax relief and increase the value of personal assets.

Pricing transfer in international trade can appropriately reduce the company's tax burden or constitute an effective delay of tax burden; Combining offshore companies with offshore trusts or private foundations can greatly reduce inheritance tax; Reasonable use of offshore companies in pre-migration planning can effectively reduce the tax burden.

Baidu Encyclopedia-Offshore Company