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Offshore: business without taxes


Expert SM, an international legal and consulting company, offers a registration of offshore companies in all offshore areas.


Surely and in the shortest time: offshore.


Offshore is one of the most popular and effective methods of tax planning. Legal basis of this method are the legislation of many countries, partly or wholly exempt from taxation companies owned by foreign persons and registered as offshore.


Where to register an offshore.


Currently, there are more than 60 countries whose legislation provides tax breaks for offshore companies. Among the most famous are: Cyprus, the British Virgin Islands, the Bahamas, Ireland, Liechtenstein. But due to the processes associated with the formation of the united Europe most of these countries can no longer serve as a reliable offshore zone.


In principle all countries can be divided in two groups:


• The first - the countries that impose offshore companies is relatively small tax;

• The second - countries that are completely exempt offshore companies from any taxation (in this case the company pays to the government of the country of registration the fee for renewal of licenses for tax-free business or investment activity).


The most popular offshore areas and offshores:


• British Virgin Islands

• Seychelles

• Belize

• Dominica

• Nevis

• Gibraltar

• Panama

• Bahamas

• Mauritius

• Hong Kong

• Cyprus

• LLP in the UK


Using a 100% tax-exempt offshore and companies that are not listed as an offshore, will allow you to run your business more efficiently.


Surely and in the shortest time: bank accounts.


Expert SM provides services for opening bank accounts in the most trustworthy banks in the world.


Offshore and tax planning.


An offshore company - a company that does not lead economic activity in the country of incorporation, and the owners of these companies - non-residents of those countries. This is the demand of those countries that approve the registration of such companies. As a rule, in these countries is very low or no taxation of offshore companies (but only a fixed annual fee).

Forming an offshore company, the entrepreneur can significantly and legitimately reduce the amount of tax payments of his local firm. The interaction between local company and offshore company can virtually eliminate the payment of the profit tax and significantly reduce benefits of social and income taxes.

Hard (if not cruel), tax legislation of any State automatically encourages businessmen to seek ways of legal tax planning. And this initiates the appearance of appropriate service market.

Offshore business rising more weight in global turnover of capital, its features and all the new opportunities it offers, deserve continued attention. It is no secret that a lot of foreign businessmen run their business through offshore companies. In Europe, taxes are high and many people try to minimize them, while in Denmark, for example, joking that tax evasion is a national sport (62%).

Tax planning and implementation of business with the help of nonresidents, including those located in offshore areas requires the presence of large amount of information on legislation, economy, etc.

In this case, the main rule that should be followed in creation and using offshore companies - to take into account the norms of national legislation and laws of the country of incorporation.


In this study uncovered a number of issues relating to tax planning and the problems of using offshore companies in business:


• general information about offshore areas and companies;

• regulation of activities with non-residents, located in offshore areas;

• issues of creation and activity of the offshore company.


Basic concepts.


Offshore - the term used for the world's financial centers, as well as certain types of banking operations. The term offshore is also called the centers, in which credit and other agencies (national, foreign) carry out transactions with non-residents (foreign legal entities and individuals) in foreign currency for this country. For the registered at these centers institutions (companies) is created specially preferential tax treatment until the full tax exemption.

Offshore - also the company of international law applicable in tax-free zones, the so-called "tax havens".

For the first time the term "offshore” appeared in a newspaper on the U.S. east coast at the end of 50's. It was a financial organization, escaped government control by geographic selectivity. By other words, the company moved activity that the U.S. government wanted to control and regulate on the territory with favorable tax climate. Thus, the term "offshore" - is not legal, but economic and geographical.

An offshore company - is a company that does not lead economic activity in the country of incorporation, and the owners of these companies are nonresidents in these countries. This is the demand of those countries that approve the registration of such companies. As a rule, in these countries is very low or no taxation of offshore companies (but only a fixed annual fee).

An offshore company - business partnership which is the equivalent of a limited liability company or joint stock company, but unlike the local enterprise partnerships offshore company is completely exempted from paying taxes or pays low taxes in the country of registration, provided that it does not extract revenues in this country, and the owners and directors are not residents of this country.


The purpose of establishing an offshore company.


Version № 1 - safe. Let us assume that you have accumulated some money and want to put them in a safe place, to have immediate access for them, freely dispose of them and freely move them around the world, protect yourself from the political instability of the State you live in. This requires a bank in a reliable, stable country. But if you open an account on your name, it is very high probability of violation of Confidentiality (personal credit card with your name just says that you have an account abroad, etc.), third - limits the possibilities of using the account. The way out is to open an offshore company where you are director, you will manage an account of the company (no one will know that you are the owner), that is not prohibited by law, and if you select the correct jurisdiction of this company, you will solve all your problems. The most popular offshore zones for storage of facilities - is the Commonwealth of the Bahamas, Panama, British Virgin Islands, Belize, Caicos. Another advantage of these jurisdictions is that it is the former or current colony of Great Britain and this makes it convenient to communicate (English), and a well-regarded partner and banks.


Version № 2 - Offshore - participant for your business. Your company leads foreign economic activity you need to optimize taxes, simplify paperwork, accelerate cash flow and ensure their safety, protect yourself from the tyranny of the fiscal authorities. An offshore company - is the way out, which allows solving many problems. She plays the role of mediator between your local company and the seller (buyer), with which you conduct your international business. Для ведения торговых операций специалисты советуют открывать компании в юрисдикциях, которые имеют договор об избежание двойного налогообложения с нашей страной и никогда не могут быть отнесены властями к оффшорным зонам.


Version № 3 - the import of fixed assets. An example. To import, say, a line for bottling and not to pay customs and VAT, you must buy this line for an offshore company and make this line as a statutory fund in the joint venture. You can also arrange leasing of this equipment for the company.Это даже немного интереснее (можно выметать за границу проценты по лизингу).


Version № 4 - "Resident nowhere". Gaps in legislation of some countries may be used in order to avoid taxation of the salary received by an individual in foreign business trips. Traveling abroad for a short period of time specialist may cease considered a resident of his country without becoming a resident of the country in which he went to work. This can happen if a private person will carefully calculate the time spent by them in a particular country. Thereby, an individual can easily acquire the status of "resident of nowhere," to avoid taxation of all or part of income.


Lately the purpose of use of offshore companies has changed a little. So if earlier offshore was needed mainly for capital export, now it appears as very effective tool of payment stabilization, price regulation of export-import contracts, self-financing, the sale of copyright, payment of foreign exchange contracts, transfer of equipment for leasing, hire staff, supply of raw material, buying a property abroad, as well as investment management and speculative activity on financial markets.