Malaysia Hotline: +603-2141 8908
Nowadays,
the world economy is increasingly integrated, and business is increasingly
showing cross-border development trends. Many companies often use multinational
operations to enhance their capabilities and expand their business areas. The
establishment of an overseas offshore company is a quick way for companies to
go global, develop multinational businesses, and enhance their international
image.
1.
Basic concept of offshore company
What
does offshore company mean? As the name implies, is a limited liability company
or joint stock limited company established in an offshore jurisdiction,
allowing international individuals to establish an international business
company on its territory. Investors do not have to visit the local area, and
their business operations can be carried out directly anywhere in the world.
For example, a trading company is registered in the British Virgin Islands, but
its trading business can be conducted between Europe and Asia.
2. The characteristics of offshore company:
(a) Offshore companies must be established
in specific offshore jurisdictions.
There are many famous offshore jurisdictions on all
continents. These jurisdictions are mainly island countries. In order to
attract investment and improve local economic development, the offshore company
law has been specially formulated to encourage investments from all over the
world to register locally. For a company's business income exemption or a small
amount of tax, only a certain management fee is charged each year.
(b)
The establishment of an offshore company must be based on the offshore company
law specific to the offshore jurisdiction.
For example, in the British Virgin Islands, the local law
regulating offshore companies is the Virgin International Business Companies
Act, while in the Cayman Islands, the exempted company specifications under
Chapter 7 of the Cayman Islands Companies Act. Some areas have special
provisions on offshore companies in the common company law.
(c) Offshore companies are not allowed to
operate in the local area.
Without exception, offshore jurisdictions prohibit offshore
companies from conducting any commercial activities locally and do business
with local residents. Once an offshore company violates this rule, it will be
revoked.
3. The purpose of offshore company
(a)The company can directly accept orders
from foreign customers and the company account can freely accept foreign funds
to avoid the foreign exchange.
(b)
Offshore company profits are all tax-free and increase profits from foreign
trade activities.
(c) Avoid exchange rate risks, trade activities
have autonomy, exempt from import and export company restrictions, and trade
information is secure.
(d) The company's
information is effectively kept confidential to protect the interests of
private offshore companies.
(e) Foreign exchange funds are freely transferable
and are not subject to exchange controls.
(f) Avoid trade barriers and restrictions in
different countries.
4. For the business nature of different companies, the purpose of
offshore companies can also be divided into:
(a) Trading company: The
benefit is extremely convenient capital operation and ultra-low tax costs.
(b) Holding company: including commercial holding companies and private holding companies with the
main purpose of maintaining confidentiality. The top ranked Hong Kong and the
second ranked British Virgin Islands are famous choice of offshore company.
(c) International
investment: used to hold corporate bonds, stocks, and transactions.
(d) Other uses: yacht holding company, property holding company, asset
protection company, public investment company, intellectual property ownership
company, transportation company, network company, insurance company, etc.
5. What are the offshore company registration spots?
There are many offshore registered spots in
the world, and the offshore policies vary from region to region. Listed below
are some commonly used offshore registration spots, such as the British Virgin
Islands (BVI), the Cayman Islands, Seychelles, Belize, Samoa, etc.
According to relevant statistics, about 100,000 offshore
companies are now established in various offshore jurisdictions each year.
Among the many users, the most common reasons for setting up offshore companies
are: facilitating trade, accelerating global processes, flexible foreign
exchange controls, and legally reducing taxes. So why it is self-evident to
register an offshore company abroad, nothing more than registering an offshore
company is more conducive to business development.
Tannet
Malaysia has been involved in the offshore company registration for 20 years.
We have branches in China, Hong Kong and Malaysia to help you set up an offshore
company. We offer a range of offshore companies from registration to management
and maintenance through one-stop service. For more information, please feel
free to call the Tannet service hotline: 603-2141 8908 or email
tannetmy@gmail.com, Malaysia company address: Unit 6.06, Level 6, Amoda 22,
Jalan Imbi 55100 Kuala Lumpur.