Some countries and regions (such as the BVI, Anguilla, Cayman, etc.) to formulate a special tax regime to attract loose investors around the world to set up overseas companies in the country (also known as the establishment of offshore companies). Such companies do not levy any tax base, only charge the annual license fee. While all international banks have recognized these companies, and provide open bank accounts and financial operation of the service. Some overseas companies in other countries or regions can also be listed.
Overseas companies, compared with the general Ltd, the main difference in the tax on offshore income of foreign companies do not have to levy any tax, or tax returns required, and information overseas shareholders, equity ratio, earnings enjoy a high degree Dengjun confidentiality.
Booming property market in Hong Kong, it is learned there is a lot of people through the setting up overseas companies for speculative housing. Transfer of the property, only to shareholders of the company to the new shares, this would greatly reduce the stamp duty expenses; Moreover, due to overseas shareholders are mostly anonymous, when the Inland Revenue Department is also more difficult to trace. But in recent years have see rigorous review of the Inland Revenue Department, in addition to attention as shareholders, the company will check the bank accounts of personal data when you open an account in order to recover the profits tax payable.
Some businesses, through its companies and their overseas trading companies, reported use of high import, export goods-report approach to reduce tax expenses, and a handsome surplus retained in the overseas companies. In addition, Taiwan also has customers in overseas orders, invoices and transferred to overseas subsidiaries, through subsidiary production orders to the mainland, which plays a subsidiary role in the middle of traders. Overseas subsidiaries from the mainland because of exchange controls, so you can open an account overseas branches of Taiwan banks to handle money.
Companies listed in Hong Kong are generally two locations as the company previously registered. Main Board companies registered in Bermuda and more choices, because of its relatively high tax concessions. The companies listed on GEM will be used as a Cayman Islands registered, the advantage is not required for registration of its prospectus, has no public offering of the company under certain circumstances (such as shares in private placements), may be faster complete the necessary procedures to reduce costs.
The Stock Exchange of Hong Kong did not accept the British Virgin Islands registered as a listed company (other than Bermuda and the Cayman Islands, Hong Kong and China will only accept registration), it is the most common structure of listed companies, was a Bermuda or the Cayman Islands holding company incorporated under the accession a British Virgin Islands incorporated company, and then control of a company in its listing of the business. This approach has the advantage is to facilitate the future as part of the business to spin off or sell, the new shareholder stake in the only British Virgin Islands companies have done.
More overseas companies will be Bermuda, Cayman Islands, British Virgin Islands for the registration. Registered in those locations, the biggest advantage is that companies can enjoy tax is very low, or even duty-free concessions, is conducive to enterprise scheduling a variety of financial arrangements; In addition, the company can have a high degree of confidentiality and less foreign exchange controls. Since most of these countries or regions will be exempt investment profits tax, it is generally engaged in holding, finance, insurance and overseas fund company, would choose such a company registered in tax haven. And through specific trust arrangements, trust companies can avoid paying inheritance tax.