Offshore - what is it?

Why there are offshore companies? What is it in practice? Why are they used? What preferences do people and countries get for resorting to their services? Here is an incomplete list of issues that will be considered in the framework of this article.

How did the offshore?

That this phenomenon can have ancient roots, few guess. And yet even then traders, in order to evade taxes, organized trade under the walls of city-states. "Offshore" can be translated as "outside the border". Similar could be observed in the Middle Ages, when the English wool was traded in Flanders, to get more benefits. Yes, and in modern times, you can find examples, take at least the colonists of the territory of modern US, when there was still royal power. To avoid falling under the influence of English law, they entered into transactions in Latin American countries.

But in the modern sense they began to use this term only in the middle of the last century. That's what the past has offshore. What can this give in practice to the state and business?

Offshore Zones

Each owner tries to get the maximum profit. And in this he will be happy to help any specialized economic zone. In their capacity, developing countries (or their separate regions), where it was decided to form attractive conditions for foreign capital. If an economic zone is created, this ensures a reliable (although not very large in volume) tax and / or duty receipt. Also, thanks to this, the level of permanent employment of a smaller population rises. One of the features of offshore companies is the absence of requirements for tax reporting or a very small list of documents that must be submitted to the authorities of the country.

Offshore companies

This is a necessary tool for organizing a profitable business of this type. We already dismantled what is directly offshore. The company also helps "personally".

Let's say you need to buy something for your company abroad. In this process, an offshore company is used as an intermediary. It does not matter what was the original price. You can specify an arbitrary input cost. Even if a batch of expensive processors will be sold for one ruble, no one has the right to obstruct the deal. And this will save money on taxes. Of course, there are pitfalls that create customs legislation, but they can all be successfully circumvented or reduced their influence.

Blacklists

We already know many nuances that have offshore. What does this give to other states? They, in turn, are very disliked by these centers of international commerce. Therefore, lists of economic zones are created to tighten compliance with the rules and achieve some of their goals. Thus, the lists of the Russian Federation were drawn up to increase control over the movement of the currency, avoidance of the situation with a zero tax rate and complete avoidance of payment of taxes. From the moment when offshore became available for interaction, initially they were offered as an opportunity for tax optimization. Since then, they are used in almost any type of activity. But such schemes can sometimes create precedents for the onset of responsibility (administrative or even criminal). Therefore, when using this tool, it is necessary to approach the matter cautiously.

How are offshore companies registered?

Feature of these subjects is the ease and speed of their creation. The already developed technologies allow creating necessary enterprises in a few moments. Another important feature is the right to confidentiality, that is, the offshore owner may remain unknown. This mechanism has its own nuances and features that can lead to the fact that the management of the company may be lost. The founder in this case are special secretarial offices, according to which it is very difficult to track the real owner (in reality one should only talk about confiscation of necessary documents or the introduction of "one's own" person).

And how does the offshore registration take place? To do this, it is enough to apply to a firm that specializes in the sale of special companies. It will avoid time and paperwork.

Of course, offshore registration is not a cheap thing. It will take at least several thousand US dollars. Perhaps, it will even go about the good ten. Subsequently, the fee will be lower, since it will only be necessary to pay a certain fee. Therefore, the offshore tool is solely used by medium and large-sized businessmen. One of the features of such economic zones is the ban on the activities of registered companies within the country. This is done in order to avoid the "seizure" of offshore large international business.