What Is The Purpose Of Off Shore Company?

Joining the WTO can make our country participate in international economic and technical cooperation in a wider range, wider field and higher level, improve our investment environment, increase opportunities and enhance the attraction to foreign trade. Our enterprises can make full use of the favorable entry and opportunity of China's entry into the WTO, make use of the two domestic and international resources, develop two domestic and international markets, participate in international competition, accelerate the process of internationalization of enterprises, and achieve greater development and profit.

Small and medium-sized enterprises will be a new profit growth point in China's economic development. However, many small and medium-sized enterprises have seriously affected and restricted their survival and development due to financing obstacles.

At present, there are many written and unwritten restrictions on the financing of various emerging enterprises by domestic financial institutions. Moreover, due to the lack of equal opportunities for listing, SMEs are also unable to obtain funds in the securities market, resulting in some promising enterprises that are difficult to develop, generally small in regulation, small in market share and weak in competitiveness.

In the face of the competition of international pnational groups, we can not form a scale advantage only by relying on our own accumulation. It is difficult to compete with it. No accumulation of financing is the accumulation of low efficiency. In order to achieve rapid and extraordinary development, enterprises must widen the boundaries of accumulation.

Overseas listing financing is a common method for enterprises.

The advantages of shell listing are as follows:

1., compared with the direct listing of enterprises overseas, the shell listing is listed on the stock exchange under the name of an overseas unlisted companies, so that it can avoid the conflict between China and the law to be listed in the direct listing and save time for listing. Therefore, many domestic enterprises first register a company outside the country, and then apply for listing in the name of the company.

2., compared with the purchase of a listed company by an overseas company, the company can construct a more satisfactory "shell company". The cost and risk of listing are relatively small, because the shell listing is purposeful to choose or set up a shell company, and then apply for listing. On the one hand, the cost of shell making is lower than that of the listed companies. On the other hand, shell companies have business connection with domestic enterprises. Besides using shell companies to apply for listing, domestic enterprises can also expand their overseas businesses by means of shell companies.

3. as shell companies are established in Anglo American legal system areas such as Hongkong, Cayman or Bermuda, the relevant laws require equity pfer, warrants and company management requirements, which are in line with international standards, which are more beneficial to sponsors, shareholders and management, and are also recognized and accepted by international investors.

4. overseas companies do not have the concepts and restrictions of initiator shares, state shares and corporate shares, so all shares of the company can be traded and traded in the market.

Off Shore Company uses two: Tax Planning

Tax planning, which originated in the 1930s, has been booming in the western developed countries. It has attracted the attention of taxpayers and the government. In the early stage of reform and opening up, tax planning in China is still known as a forbidden area. Taxpayers do not dare to talk about tax planning, and the tax authorities on behalf of the state are always avoiding it. With the rapid development of the market economy, the desire for tax planning is very strong for many enterprises. Especially for some large, medium-sized enterprises or foreign-funded enterprises, people gradually realize that tax planning is a basic right of taxpayers, and the proceeds obtained through tax planning are legitimate income, which is different from tax evasion and tax evasion.

Taxpayers have the right to achieve the lowest tax burden through reasonable arrangement and planning of business activities on the premise of legitimate conditions. It can be said that tax planning is a tax optimization option after careful comparison of the tax laws formulated by the government, and it is a kind of economic behavior that accords with the government's policy guidance.

The registration of overseas Off Shore Company is the tax planning method adopted by many enterprises. Because of the lack of international tax management coordination system, and the fact that tax policies vary widely across the world, some countries have heavy tax burden, while some countries are very light, and objectively lead many enterprises to make full use of these legal differences to maximize the benefits of their own enterprises.

The choice of establishing a company in an offshore jurisdiction can pfer and accumulate profits generated from the operation or investment of a third country. Its typical practice is that when a company wants to invest in a country, the company first establishes a foreign company in an international tax haven, and then invests in foreign countries to invest in the country so as to achieve the purpose of reasonable tax avoidance.

If a domestic company exports ten thousand sets of equipment to a third country, the company can export ten thousand equipment to the offshore subsidiary company first, then export to the third country by subsidiary company. Although the subsidiary company has not realized the pfer of goods, the domestic company can pfer its sales revenue to the accounts of the company and make use of the tax-free preferential policy of the offshore subsidiaries to achieve the purpose of tax avoidance.

An international company can set up a trust and investment company in an offshore jurisdiction, and then dump its assets into trust assets of tax shelters, so that tax avoidance purposes can be achieved.

For example, a multinational company set up a trust company in Bahamian archipelago and dump the property away from Bahamian archipelago to the trust company, then hang the proceeds of property management on the trust company's accounts, thereby avoiding tax liability.

For those companies that are mainly engaged in various trade and labor services across the border, they can use the subsidiaries of tax havens to achieve reasonable tax avoidance by lowering or increasing the pfer pricing method. The prevailing practice is reflected in the tax haven Corporation's low price purchase and high price sales.

Three of Off Shore Company's uses: investment vehicles, personal service companies and employment companies

1. investment vehicles

Companies and individuals can be regarded as a tool for them to invest or invest in enterprises and individuals, and it is confidential and can save costs.

2. personal service company

Entrepreneurs, businessmen, senior managers, actors, writers, inventors, engineers, intellectual property owners, wealth successors, lawyers, doctors and other professionals can earn substantial tax reduction benefits through the establishment of overseas personal service companies, and can make early planning for immigrants.

3. employment company

Many companies employ Off Shore Company to employ staff abroad, which can reduce wages and travel expenses and provide employers with the convenience of saving taxes and social insurance contributions.