Some countries and regions (such as BVI, Macau, Samoa and Cayman etc.) have formulated some especially loose tax systems to attract worldwide investors coming to those countries to set up Offshore companies (also known as Offshore companies). This kind of company generally is not subject to any tax, except an annual license fee. Meanwhile, all international banks accept this kind of company and provide bank account opening and financial operation services. Some Offshore companies can also be listed in other countries or regions.
An Offshore company is different from a general limited company mainly with regard to tax revenue; that is, revenue from an Offshore company is not subject to any tax payment, nor to any tax declaration, and the shareholders' information, shareholding percentage and revenue status are entitled to high confidentiality. For a summary of various Offshore companies, see the Jurisdiction Comparison Chart 116kb.
Set Up Offshore company is generally used for the purpose of
- Tax planning
- Acting as a holding company
- International trade
- Offshore listing