The meaning of offshore means that companies are registered in the offshore jurisdiction, but the investors neither live or do business there physically. The business operations rather can be directly carried out anywhere in the world. Companies often use multinational operations to enhance capabilities and expand business globally. Here we point out the advantages of having an offshore firm:
1 Avoidance of tax/Tariff
If, for example, a firm owns an offshore company in the Cayman Islands, the firm exports products to countries where they impose an anti-dumping tax on that country of origin where the parent company operates in. It is likely that, by using an offshore vehicle for exporting, the punitive tax can be then avoided.
2. Easy Financing
By registering an offshore company, it can greatly simplify the financing procedures. For example, if you are a BVI-registered company operating in Hong Kong, it is much easier for you to get access to a pool of financing. For most banks, you are able to apply for a non-secured loan using bank statements and annual accounts of the said BVI company, however, the approval is at the discretion of the bank.
3. Avoidance of Capital Control in Certain Jurisdictions
As we all know, due to the foreign exchange control in countries such as China, companies, and individuals are obliged to comply with capital control regulations there. Each individual holding a Chinese ID card is only allowed USD 50,000, or its equivalence, to be moved out of the country annually. Companies operating in China, on the other hand, are only permitted to transfer profits out of China, shall the company declare making money in the financial year. With a BVI-registered company, there will be no capital control imposed on individuals on companies, which is a plus for international trade.
4. Simple company management
Offshore companies do not need to hold annual shareholders’ meetings, nor do they need to choose a place to hold such meetings. They can, however, appoint a company secretary to prepare any documents for any use within the company.
6. The registration process is convenient, and the opening cost is low.
The registration procedure for offshore companies is very simple and can be done by a professional registered agent, without the need for a business owner to visit the offshore jurisdiction for incorporation.
The status of shareholders, directors cannot be checked publicly. Only trust management companies can access the company’s details. Nevertheless, the law prohibits trust management companies from arbitrarily leaking relevant materials to any third parties.
8. There are no restrictions on investors, shareholders, and directors
There are no restrictions on nationality, personal information, assets, etc. of shareholders and directors.
9. No restrictions on business scope
Except for certain restrictive industries, such as banks, insurance, military, offshore companies have almost no restrictions on the scope of business.
Our Online Offshore company formation is available in more than 20 countries. Please click here to start your online incorporation process with us. We promise that we provide the highest qualify of services at competitive rates with excellent lifetime customer support, meaning you will receive advice/support from us forever after you have purchased services from us. We will answer any of your queries before sales and after-sales. We will guide you step-by-step to set up your business and advise on your day-to-day operational queries. We believe in people building businesses, so not only do we offer corporate services, but also individual needs on a personal level. For example, if you form a company with us and would need a private bank account or any immigration advice, then we certainly help you with your personal requirements as well. This ensures that all company owners/directors/shareholders are being looked after by us. Together, we prosper in business.
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