How To Register Overseas Companies

overseas

How to avoid tax through overseas registration?

When the real estate market in Hongkong prospered, it was reported that many people used overseas companies to sell houses.

As the property is pferred, it is necessary to pfer the shares of the company to the new shareholders, which will greatly reduce stamp duty expenses. Moreover, as the shareholders of overseas companies are mostly anonymous, the tax bureau will also increase the difficulty in tracking them.

However, in recent years, the tax bureau has seen strict scrutiny. Besides paying attention to shareholder status, it will also inquire about the account information of the company when it opens an account, so as to recover its profits tax.

Some enterprises will make pactions through their own companies and their overseas companies, using high profile imports and low reported export goods to reduce tax expenditures and retain substantial surpluses in overseas companies.

In addition, Taiwanese businessmen have accepted orders from overseas and pferred their shipping orders to overseas subsidiaries. They have been subcontracted to mainland China through their subsidiaries, thus playing the role of middle traders.

Because overseas subsidiaries are not subject to foreign exchange control in mainland China, they can open accounts at overseas branches of the Bank of Taiwan for processing funds.

Which overseas registration site should be selected?

British Virgin Islands (BVI)

The British Virgin Islands, also known as the British Virgin Island, consist of a group of about 50 islands in the Caribbean Sea.

The island is situated 80 kilometres east of Puerto Rico, near Central America.

Since 1988, the British Virgin Islands has risen rapidly in the professional promotion of all parties, making it the most popular offshore registration site.

Among the three, the British Virgin Islands companies have the most relaxed registration conditions and can be completed within 24 hours.

The company established in that place can enjoy the advantage of near tax exemption and the roster of shareholders should not be disclosed.

However, because the restrictions on the establishment of the British Virgin Islands are too loose, for some advanced countries, it is not necessarily the best tax avoidance registry.

For example, when the company invested in the United States in the name of the company, it often fails to meet the local tax law requirements, thus reducing the provincial tax space.

Cayman Islands

The Cayman Islands are British autonomous regions, only 800 kilometers away from Miami, and consist of three islands in the Caribbean Sea.

The Cayman Islands are politically stable, convenient pportation and well-developed communications, and are well suited for the development of various types of financial and business activities.

The local government has given itself a considerable support to the development of an offshore financial centre.

In addition to the stamp duty, the Cayman Islands do not levy any taxes at all, and can be regarded as a real tax haven.

At present, more than 18000 companies and 500 banks and trust companies have been registered in the Cayman Islands. Many law firms and accounting firms also have branch offices here.

There are no additional regulations in Cayman Islands to restrict trade development and no foreign exchange control. Funds can be flexibly mobilized in many ways.

Bermuda

Bermuda is located on the eastern coast of the Atlantic on the mainland of the United States. It is only 1250 kilometers away from New York.

Geographically close to several financial centers, such as New York and Boston, and Europe's Paris and London.

Among the three, the location of Bermuda is the best.

The companies incorporated in Bermuda generally adopt British legislation, which is stable, tax free and free from foreign exchange control.

Compared with the Cayman Islands and the British Virgin Islands, the requirements for registration of Companies in Bermuda are relatively strict (such as the minimum shareholder requirements), and the establishment time is longer.

However, due to its rigorous standard setting, it is also accepted that financial activities in Europe and the United States are more acceptable.

Hong Kong listed companies chooses overseas registration

Listed companies in Hongkong usually have two locations in the past as the registered places of the company.

The main board companies choose to register in Bermuda because their tax preferences are relatively high.

As for GEM listed companies, the Cayman Islands will be used as a registered place. The advantage is that they do not need to register their prospectus and do not need to publicly offer shares, so that the company can accomplish the necessary procedures faster and reduce costs in a certain case (such as Private Placement Shares).

At present, the Hongkong stock exchange has not accepted the British Virgin Islands as a registered company (except for the Bermuda and the Cayman Islands, and only accepts Hongkong and China as a registered place). The most common structure of the listed company is to join a British Virgin Islands incorporated company under the control of a Bermuda or Cayman Islands incorporated company, and then control its listed businesses under the banner.

The advantage of this approach is that it will be convenient for new shareholders to enter the British Virgin Islands company if they want to split or sell part of their business in the future.