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How do you feel about offshore companies?



New Member
Generally speaking, a tax haven is a jurisdiction in which taxes are either applied at a low rate or not at all. An offshore company is a company established in order to operate and perform business activities outside the jurisdiction in which it was officially incorporated, as well as outside (or off the shores of) the place of residence of its directors, shareholders and beneficial owners, which may be crucial for tax planning in certain legal systems. Usually, an offshore company is established in order to receive certain legal or tax benefits, to allow for a particular corporate structure or to protect the confidentiality of the beneficial owner and/or asset holder.
The six main benefits of incorporating an offshore company in one the tax havens:
Tax reduction;
Simple maintenance;
Asset protection;
Lower expenses;
Lower minimum share capital requirements.
Business Upside

Business Upside

One of the main offshore company welfares is that they are generally “tax neutral” meaning they are often tax excused in the country of combination or they pay a low or zero effective rate of taxation when used as a holding company getting dividend income for example.

Karen Chen

New Member
I think offshore company is very beneficial in many instances especially nowadays many businesses can be operated and managed online. For instance, if you are an IT specialist or are engaged in import export trading business, you can set up a company in low tax city such as Hong Kong to run your business while residing in your home country. No VAT, no sales tax. The only tax company pays is profit tax which is super low at 8.25-16.5%! No need to hire staff or rent office locally as all back office works can be outsourced to local service provider.