Off-shore company incorporation is carried out in the offshore tax havens which have passed the appropriate legislation to allow for offshore company setup. Offshore company incorporation is carried out for many purposes including for carrying out business operations, for privacy, asset protection and tax exemptions which off shore companies are known to provide.
Off Shore Company incorporation can be achieved in the following countries: Dominica, Bahamas, Cayman Islands, Anguilla, Nevis, St Kitts, British Virgin Islands (BVI), Isle of man, Mauritius, Cyprus, Seychelles, Panama, Belize and other offshore jurisdiction. Off shore companies incorporation in the offshore tax haven is done by professionals and saves the beneficial owner of the off company a trip. Company incorporation in the offshore tax havens is completed in one working day. The process of incorporating off shore companies includes filing a Memorandum of Association and Articles of Association to the Registrar of Companies or the authority responsible for offshore companies’ registration. A Certificate of Incorporation is issued to companies who are qualified.
Offshore company incorporation provides a business companies which is very useful. Offshore business companies are used around the world as trading companies engaging in legal trade in many countries. Offshore companies can do business anywhere in the world which is why many persons choose to incorporate off shore companies over regular or onshore companies. Offshore company incorporation can be done simply for holding assets. There are several other business operations which offshore companies can engage in but trading is the common use of off shore companies.
The off shore tax havens provide tax exemptions for all off shore companies from the day of incorporation. Some offshore tax havens make it possible for offshore companies to pay no local taxes on profits of the companies whilst others levy taxes at very low rates. For this reason (tax exemptions) offshore company incorporation is used for reducing tax liabilities. Offshore company formation means tax exemptions on the following forms of taxation, income tax, capital gains tax, corporate tax, estate tax, withholding tax and other forms of local taxation. Each off Shore Company must pay an annual license fee and a registration fee.
Offshore company incorporation in the offshore tax havens means an entity which benefits from asset protection. Offshore company legislation is structured in such a way as to provide protection for all assets which are registered with an offshore company. asset protection laws makes it possible for assets of offshore companies to be protected from creditors, rulings of foreign courts and other third parties who may want to access these assets.
In most offshore havens privacy is provided for the beneficial owners of offshore companies as legislation states that the names of company shareholders and directors will not become part of public records in these countries. In the cases where these names are made public offshore jurisdictions normally allow the use of nominee shareholders and directors for off shore company incorporation.
Offshore company incorporation has many benefits for the beneficial owners and offshore companies themselves are very useful.
Administration of Offshore Banking ProceduresGENERAL PROVISIONS
Article 1 These Procedures are formulated in accordance with the PRC, Foreign Exchange Control Regulations in order to standardize offshore banking by banks.
Article 2 for the purposes of these Procedures the term “banks” shall refer to Chinese banks and their branches which have been approved by the State Administration of Foreign Exchange to conduct foreign exchange business.
Article 3 for the purposes of these Procedures the term “offshore banking” shall refer to non-residents’ capital absorbed by the banks and to financial services provided to non-residents.
Article 4 For the purposes of these Procedures the term “non-residents” shall refer to natural persons, legal persons (including Chinese overseas investment enterprises), government organizations, international organizations and other economic organizations outside China (including Hong Kong, Macao and Taiwan), and including the overseas branches of Chinese financial institutions but not including the representative organizations and offices outside China of organizations inside China.
Article 5 the currency in which offshore banking is conducted shall be limited to freely exchangeable currencies.
Article 6 The State Administration of Foreign Exchange and its branches (hereafter referred to as “foreign exchange administrations” shall be the authority supervising the conduct of offshore banking by banks and shall be responsible for examination, approval, administration, supervision and investigation of offshore banking.
Article 7 Banks should conduct offshore banking in accordance with these Procedures and provide services to clients in accordance with international practices.