What Is an Offshore LLC?

An offshore company refers to a limited liability company or a company limited by shares established in accordance with its offshore company law regulations in an offshore law zone. The local government does not have any taxes on such companies and only charges a small amount of annual management fees. At the same time, all major international banks recognize such companies to facilitate the establishment of bank accounts and financial operations. It has three characteristics of high confidentiality, tax burden reduction and no foreign exchange control.

Offshore Company

Offshore company refers to a company established in the offshore legal area in accordance with its offshore company law norms.

An offshore company refers to a company that operates outside the company's place of registration and cannot operate in the place of registration. World

Offshore Companies Act (

1. Trading company: The direct benefits are extremely convenient capital operation and ultra-low tax costs.

2. Holding companies: Including commercial holding companies and private holding companies whose main purpose is to maintain privacy. Mainland Chinese-foreign joint ventures and wholly-owned companies invest in Hong Kong first and second

An offshore company's account with a bank belongs to

1,

Certificate of survival

(Certificate of Good Standing)

Certificate of Deposit (also known as Certificate of Good Faith) is a legal certificate issued by the government of the country where the offshore company is registered or its registered agent to prove that the company is not in the liquidation process or that the company has not been deregistered . If the company is not in effective existence, it cannot have any external legal actions.

Director's Certificate of Employment

(Certificate of Incumbency)

The director's employment certificate, also known as the current director's certificate, verifies the registration date, registration number, register of directors, who the secretary is, the amount of capital, the share capital, the register of shareholders, etc. of the offshore company. Director's certificate of employment is usually issued by an authorized registered agent in the place of registration.

Nominee shareholders and nominee directors

The laws of some countries or regions require that a company incorporated locally must submit company directors and shareholders' information to the company registration management department. Then, the relevant department will archive such information and make it public for public inspection. . In order to achieve the purpose of concealing identity, some investors or operators appoint others (friends or relatives or professional institutions such as the company) to serve as directors and shareholders. In this way, only the information of the appointed person will appear in the The company's statutory documents are on and publicly available for public inspection. Such appointed persons are called nominee shareholders and nominee directors, and are also called nominee shareholders and nominee directors.

As for the proxy shareholders, in order to protect the interests of the company s true owners, the two parties will sign a trust agreement and a pre-signed share transfer letter when they are formally appointed. In this way, the true owners of the company can prove their Identity. Moreover, when it considers it necessary, it may transfer the proxy shares to itself or its designated third party at any time.

As far as the acting director is concerned, both parties will sign the agency agreement and state that the acting director must act in accordance with the instructions of the company s true owner (that is, the director behind the scenes), so the interests of the company s true owner are thus protected. Of course, in order to protect the interests of the acting directors, the true owner of the company (behind-the-scenes directors) needs to sign a guarantee letter that will not harm the acting directors.

Registered stock

Registered stocks refer to stocks whose shareholders' names are recorded on the par of the stock and on the shareholder register of a joint stock company. Shareholders' rights are vested in registered shareholders; the payment for the subscription of shares may not be fully paid at one time; the transfer is relatively complicated or restricted; it is easy to report losses and is relatively safe.

Bearer Share

Bearer stocks refer to stocks whose names are not recorded on the par of the stock or on the register of shareholders of a company. Bearer stocks are also called bearer stocks. Compared with registered stocks, the identification is not in terms of shareholder rights, but in the way of recording stocks. When a bearer stock is issued, there is usually a stub link. It is divided into two parts in form: one is the main body of the stock, which records matters about the company, such as the company name and the number of shares represented by the stock; For settlement of dividends and exercise of capital increase rights. The rights of holders of bearer shares belong to the holders of the shares; full payment is required when subscribing for the shares; the transfer is relatively simple; and the security is poor.

Denominated stock

Denominated stocks refer to stocks with a certain amount recorded on the face of the stock. This recorded amount is also called face value, face value or stock face value. Denominated stocks can clearly indicate that each stock represents

A new phenomenon has emerged in China's foreign investment and overseas listed companies. The source of foreign investment is mainly Hong Kong companies, and an unknown Caribbean island country.

According to business needs, there are mainly two options for offshore companies to open an account: one is to open a so-called offshore account in the mainland, and the other is to open an account directly overseas (mostly in Hong Kong considering convenience).

There are two main camps for providing offshore banking services in Mainland China: one is a foreign bank, and the earliest business they were allowed to do when they first entered the mainland market is offshore business, such as HSBC, Standard Chartered Bank, ABN AMRO, etc .; the other is Chinese banks (mostly joint-stock banks), such as CITIC Bank,

Economic Integration

Registering an overseas offshore company has become a shortcut for companies to go global and launch multinational business.

Tax-free treatment

For a company to export products to the United States, it needs to apply for quotas and a series of related procedures, which will cost one to two times more. And if the company owns an overseas offshore company, the company exports products to the offshore company, and then the offshore company exports to the United States and other developed countries, it can get tax-free treatment around the switch tax barriers, and can also successfully bypass the export Quota restrictions.

Bypass foreign exchange management

Bypass foreign exchange management and facilitate foreign investment. Generally speaking, it is relatively simple and convenient to register an overseas offshore company, and then conduct overseas financing in the name of the company and list on the second board of Hong Kong or Singapore. Moreover, because the offshore offshore company's capital transfer is not too restrictive, the company is also very convenient in the use of funds. Many companies listed in this way simply put the funds raised in overseas capital markets first in offshore offshore. The company will then remit funds to the country one by one according to the specific needs of domestic enterprises.

Lax legal environment and good confidentiality

The legal environment is relaxed and confidential. British Virgin Islands, Cayman,

LC, D / P negotiation is prone to discrepancies

Offshore companies are well known for their inability to provide FORM A, C / O, and embassy-certified LC most commonly used negotiation documents. It is easy for unnecessary risks to appear in strict documents such as LC and D / P.

There is also a problem here, as long as the letter of credit is the above-mentioned document that accepts third-party documents, there is no problem.

Cannot provide verification form

Although offshore companies can successfully open accounts in domestic banks, after all, it is still an overseas company and has not filed domestic industrial and commercial tax records. Therefore, offshore companies cannot provide verification forms, customs declaration forms, and export declarations. Since no verification form can be provided, there are only two ways to solve it:

(1) Go to an agency for export;

(2) Pay for export.

Restricted account operations

If the fast flow of funds advertised by the offshore company leaves the big tree of the agency company, it will be a flower in the mirror and a moon in the water.

Bank accounts opened by offshore companies, whether in the mainland or abroad (basically offshore accounts are opened in the country and can be engaged in

Currently

Offshore Company Offshore Finance

Refers to financing activities carried out by financial institutions that are located in a country but have little connection with the country's financial system and are not controlled by the country's financial regulations. Strictly speaking, offshore finance is also an asset-finance channel that is not regulated by the authorities domestic banking laws, regardless of whether these activities occur inside or outside the country.

Offshore Company Offshore Bank

An offshore unit is a bank or other financial organization located in an offshore financial center. Its business is limited to dealing with other overseas banking units or foreign institutions, and it is not allowed to conduct business in the domestic market.