An offshore, often referred to as a “tax haven,” is a country or a specific territory within a country where companies enjoy special, preferential conditions. Such conditions may include: low taxes, confidentiality of company ownership, simplified financial reporting requirements, and ease of company registration and operation. The simplicity of company registration also implies less control over the origin of funds.
To register a company offshore, it is not necessary to be a resident of the offshore country or to have a registered office (business representation) there—you can benefit from the offshore country’s regulations and tax regime without these. Companies that seek to avoid certain legal controls and some taxes are mainly registered offshore. Offshore companies primarily benefit from tax advantages on corporate profits, dividends, and income.
There are dozens of offshore territories worldwide. Such legal systems are profitable for offshore countries. In addition to the fees companies pay for offshore registration, foreign companies in offshore jurisdictions are served by local companies, whose use is mandatory.
Today, the most in-demand offshore countries and territories are: Panama, British Virgin Islands, Cyprus, Bahamas, Cayman Islands, Belize, Barbados, Jersey, Isle of Man, Hong Kong, Marshall Islands, and Macau.
