How to choose the most suitable offshore company domicile?

With the gradual acceleration of the process of global economic integration, more and more entrepreneurs are gradually shifting their vision from domestic to foreign countries. The establishment of offshore companies has become international trade, overseas investment, public listing, asset allocation and other international enterprises is an effective way of doing business.

1

What is an offshore company?

✅ Offshore companies

Generally refers to a limited liability company or a company limited by shares formed in an offshore jurisdiction under its offshore company statute. The local government regulates such companiesNo taxes whatsoever.The company has a small annual management fee and is recognized by all major international banks, which facilitates the setting up of offshore bank accounts and financial operations. With a high degree ofConfidentiality, tax relief, no exchange controlsThree main features.

2
Which countries can I register an offshore company?

Most of the popular offshore company domiciles do not have foreign exchange controls and the company laws adopted can cater to different international trade needs. Therefore, it is important to choose an offshore company domicile that is well suited to the specific needs of companies and individuals.

📍 Currently, the more popular offshore domicile, as well as banks are accepted to open accounts in the territory there:Hong Kong, UK, New Zealand, Marshall Islands, BVI (British Virgin Islands), Seychelles, etc.

3
How many types of accounts can an offshore company open?

In terms of the most basic considerations of receiving and paying foreign exchange for a business, there are several types: 👇

❶ NRA accounts (domestic foreign exchange accounts for foreign institutions)

NRA account, means a foreign exchange account opened by a foreign company registered in a region other than China with a bank in China in accordance with the regulations.

❷  OSA accounts (domestic offshore accounts for foreign institutions)

OSA account, that is, OFFSHORE ACCOUNT, refers to the account opened by a foreign institution in the offshore business department of a domestic bank that has obtained the qualification of offshore banking business operation according to the regulations. This kind of account can be understood as an offshore account opened in China.

❸  FTN accounts (free trade accounts within the territory of foreign institutions)

FTN Account, i.e. Free Trade Non-resident Accout refers to one of the Free Trade Accounts launched by Shanghai Pilot Free Trade Zone (SFTZ), which can only be opened by overseas companies in Shanghai FTZ.

In layman's terms, the above three are all foreign exchange accounts opened by offshore companies in mainland Chinese banks according to different policies. The threshold of entry is high and strictly regulated by the mainland, so generally small and medium-sized enterprises do not need to consider it.

❹  Offshore accounts

It refers to the bank account opened by the foreign company in the bank outside of the country (including Hong Kong, Macao and Taiwan), which is what we most commonly refer to as an offshore account.

4
How to choose the right offshore domicile?

Various offshore registries are roughly categorized into the following categories based on different company characteristics:

I. Shareholder and director information confidentiality, low follow-up maintenance costs, suitable for foreign trade SOHO and small and medium-sized enterprises.

selectableMarshallese, BVI, SeychellesThis type of archipelago company, because the information of the final beneficiaries of this type of company can be kept confidential and the subsequent management is simple.

And the local government regulations: any person in the world can set up a company in the local community, but must be outside the place of registration to operate, the profits made without having to pay any tax to the local government, without having to do the accounts, and do not have to file tax returns, you only need to pay a fixed license fee every year.

Second, build the brand, enhance corporate awareness, close to the country, suitable for all companies.

Consider registeringHong Kong companyAs of now, Hong Kong is one of the most popular offshore registration sites for company registration and one of the earliest popular offshore registration sites.

Although the subsequent annual inspection and tax filing are much more troublesome compared to island countries, it is the most convenient area recently.

Third, maintenance is simple, but also can enhance the corporate image for branding.

Options to considerUK, New Zealand, Singapore companies, these companies have simple management and good international image.According to local regulations, as long as you don't operate locally and have no local customers, you don't need to do the accounting and tax filing, you just need to pay the annual inspection fee on time.

Today's world economy is becoming increasingly integrated, business is increasingly showing the trend of cross-border development, and enterprises often use cross-border management to enhance their strength and expand their business areas.

Incorporating an offshore company is a shortcut for enterprises to go global, conduct multinational business and enhance their international image.