Views: 5 Author: Site Editor Publish Time: 2021-05-26 Origin: Site
Offshore company must be established in a specific offshore jurisdiction, which is the geographical identity of offshore company. In order to attract investment and improve local economic development, offshore company law is specially formulated to encourage capital from all over the world to register in their local areas. The business income of enterprises is exempt from or charged a small amount of tax, and only a certain amount of management fee is charged every year.
The legal basis for the establishment of offshore company must be the special offshore company law of offshore jurisdiction, which is the legal factor of offshore company. For example, in the British Virgin Islands, the local law regulating offshore companies is the virgin international business companies act. While in the Caymans, it is the exemption company regulation under Chapter 7 of the Caymans companies act.
Generally speaking, the registered capital of an offshore company comes from the investment of investors outside the offshore jurisdiction. Or the investors and founders of an offshore company are non-local, which is the capital element of an offshore company. From the purpose of creating offshore company law in various countries, its essence is to facilitate the capital operation of foreign investors. In practice, the main part of offshore company is composed of investors (including natural persons, legal persons and other economic organizations) and companies established by capital.
Offshore companies are not allowed to operate in the offshore jurisdiction, or offshore companies are excluded from their local operation, which is the operation element of offshore companies. Almost all offshore company laws provide that once an offshore company is found to have signed a commercial contract with other companies in the offshore jurisdiction, the authorities will revoke the offshore status of the company.
The place of registration of an offshore company is in the offshore jurisdiction, and its main business and management activities are carried out outside the registered offshore jurisdiction. Therefore, the offshore company has the characteristics of separation of the place of registration and the place of operation. This kind of separation is sometimes reflected not only in the fact that the investors of the company do not have the status of natural person or legal person in the offshore jurisdiction, but also in the fact that the directors, managers and other senior managers of the company are generally not residents of the place of registration.
The direct benefits for cross-border trading companies include extremely convenient capital operation and ultra-low tax costs.
Offshore companies are applied to hold bonds, stocks and transactions.
Property holding company, asset protection company, public investment company, intellectual property holding company, transportation company, network company, insurance company, e-commerce company, etc.
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