An offshore company is a company (also known as a non-resident company) that does not conduct substantive business at the place of registration. That is, the company of the investor is registered in the offshore law zone, and the investor may not be in the local area, but its business operations can be performed around the world. Directly from anywhere. Offshore companies differ from the usual methods of collecting taxes on turnover or profits. The local government only imposes a small annual management fee on offshore companies, and no tax is collected. In addition, all major international banks recognize such companies and also facilitate the opening of bank accounts and financial management.
Ten advantages of setting up an offshore company
1. Companies registered in the Cayman Islands do not have taxes, either for individuals, companies or the trust industry. So the Cayman Islands is known as a real tax haven. The Cayman Islands received a royal decree in 1978, which provided for the permanent exemption of the tax liability of the Cayman Islands, which is currently in force. Exempt companies can also apply for a 20-year valid exemption certificate to further ensure that they are not subject to tax status. There is no profit tax or property tax. The only tax is stamp duty. Any transfer or mortgage real estate is subject to stamp duty.

2. Listing: listed and traded in the US, Hong Kong and Singapore stock exchanges;

3. It is convenient for enterprises to carry out transnational operations. Enterprises carrying out transnational operations are often subject to various restrictions imposed by the home government, especially in developing countries. In this case, registering an overseas offshore company will also become a shortcut for enterprises to go global and conduct multinational business. The company type is exempt from the company name without the end of the word "LIMITED" (ie "limited").

4. An offshore account can be set up: Bank accounts (Hong Kong, Singapore, China, etc.) can be opened in the name of the company, trusts can be established, letters of credit can be opened, bills can be exchanged, and letters of credit can be transferred;

5. Avoiding foreign exchange controls to facilitate capital operations. The offshore financial center of the Caribbean does not have any foreign exchange controls, and the international commercial companies registered here are not restricted in terms of capital transfers, which is very attractive for companies in countries with foreign exchange controls.

6. The legal environment is relaxed. Because the United States occupies a special position in the world economic system, many of the practices in current international business practices are actually the products of the Anglo-American legal system, while the British Virgin Islands, Cayman, Bermuda and other places are partially autonomous British colonies, and their corporate law. Based on the British Business Companies Act, it is beneficial to attract overseas companies to register.

7. There are very few information disclosure requirements, and the confidentiality regulations are relatively strict, which is conducive to the company to maintain business secrets. In the major offshore financial centres in the Caribbean, provisions for the protection of confidentiality are applied to internationally registered commercial companies. This includes the need to present an audited statement of accounts or annual audits, the issuance of bearer shares, the need to have a record of local activities, the need to disclose the name of the director to the person in charge of the company registration, and the need to register shareholder information. The relaxed legal environment and the high degree of confidentiality of the company's business ensure that the offshore company's own safety is fully protected, greatly reducing various risk factors. The local court has repeatedly prevented banks from providing customer information to foreign courts and governments, providing good concealment conditions for enterprises and their actual controllers. There is no need to disclose company directors and members information in the annual inspection report. In April 2001, the Cayman government issued new regulations requiring all companies to disclose information about the company's principals, members, beneficiaries and licensors to registered agents. This rule applies to all new companies, and registered companies must provide relevant information within a certain period of time. The information is treated as a trade secret and is governed by the Confidentiality Maintenance Act. Therefore, anyone who discloses the information or attempts to obtain the information or obtains the information through illegal means will violate the criminal law.

8. The tax burden is slight and double taxation can be avoided. The offshore financial center of the Caribbean has a slight negative tax on various international commercial companies and offshore companies, and almost all offshore financial centers in the Caribbean have signed double taxation treaties with major economic powers. For example, Antigua stipulates that international commercial companies are completely exempt from tax within 50 years from the date of establishment. Bermuda stipulates that income, profits and distribution on the island are not taxed. The Cayman Islands does not levy income tax, capital gains tax, corporate tax or inheritance tax.

9. The registration process is convenient and the maintenance cost is very low. The offshore company's registration process is very simple, with a professional registration agency on its behalf, and does not require the registrant to go to the registration site to operate.

10. The company is easy to manage. Offshore companies do not need to hold annual shareholders' meetings and board of directors. Even if they are held, their locations can be arbitrarily chosen and have greater freedom. Many offshore financial centers do not have minimum capital requirements for international business companies. For example, the shareholders, directors and staff of the offshore company of Nevis Island can be citizens of any country and can live anywhere. Shareholders and directors can take concerted action without a meeting, and the company's files and main business premises can be located anywhere.

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