What characteristics have offshore companies?

Offshore companies have five characteristics common to all:

Non-residency

An offshore company is not a resident of the country in which registered.
As a rule, the founders of these companies are the main foreign citizens and business management are from abroad.
Most countries prohibit offshore companies to do business at the place of registration. Because of this, limited opportunities for expansion of offshore companies in the domestic markets, as preferential status and tax breaks give them a big advantage over other companies.

 

Preferential tax

For the most part, the offshore area is the area that are not suitable for agriculture and non-mineral deposits. In order to improve the economic well-being of states that are in these areas, governments create favorable conditions for foreign capital. More attractive for foreign companies are significant tax benefits - the results of offshore companies are not the basis for the calculation of most taxes. Instead of paying a fixed annual registration fee.

 

Simplified registration

To register an offshore parent company do not need to personally be the country in which the company offers. All work on registration and submission of documents for him define various secretarial company.

 

Freedom of currency transactions

For offshore companies are no restrictions on the conduct of foreign exchange operations. The only restriction imposed on financial transactions in the currency of the country in which to incorporate a company. Apart from these, there are no specific requirements for the filing of financial statements and audits.

 

High level of confidentiality

Economic activities of offshore companies is on the principles of complete anonymity and confidentiality. Data on the status of bank accounts held by the financial operations of the founders of the company and other busines information is strictly confidential and is not subject to disclosure.