Offshore is ... The advantages of offshore zones for doing business

The world has long and tightly packed web of offshore zones and connections. Even in ancient times it was considered reasonable to trade in places less prone to political instability, bureaucratic reporting. It was difficult to judge how this was actually justified, but the fact that today one third of the global GDP belongs to offshore companies is a fact confirmed by numerous studies.offshore it

Offshore is initially good, because it provides considerable freedom and protection of private information. But it is also a significant risk and close attention of both local and international law enforcement agencies. It is justifiably believed that offshore companies are far from being always used for good, but are used for the laundering of capital, the financing of terrorism, drug trafficking and other actions that are hard to call criminal.

Offshore - how do you spell?

In English, “off shore” is “off-shore” or “out-of-border,” but one letter is written in Russian, and the word sounds shorter and more familiar.Therefore, "offshore" or "offshore" - how to use, everyone decides on their own. Usually the word is used with one letter “f”, although it is more correct to write two. An offshore zone is a state entirely (often island), but it can also be part of the state’s territory.

The main meaning of the offshore zone is privileges and “privileges”: first of all, the simplicity and speed of registration of an offshore company, then tax privileges, then protection of private (private) information and free movement of capital.word offshore

Offshore companies are not required to report (or reports are very simple), they do not pay taxes (or they pay little), they are confident that information about their activities will not be available to outsiders without a proper court decision.

But to create an offshore company, you need initial capital and knowledge, because every offshore company is first home business with the accumulation of seed capital and potential, and only then the choice of offshore zone, country, risk assessment, construction of financial schemes and the creation of a company.

The positive side of offshore companies

The offshore zone, as a rule, does not have natural resources, its own production infrastructure and is interested in the economic development of its territory, the creation of jobs.To attract capital and business, to earn on registration, re-registration and servicing of foreign companies are the main goals of the offshore zone.

Therefore, usually foreign businesses are represented by:

  • preferential taxation, the ability to get more profit;
  • simplified registration (re-registration) of a legal entity;
  • lack of bureaucratic obstacles, fast and friendly design;
  • simple management - the owner can do everything through an authorized person;
  • minimal legal and political risks;
  • the laws of the country of the offshore zone;
  • real, not declared bank secrecy;
  • protection of information about commercial activities.

Depending on the specific offshore zone, the spectrum of attractiveness is formed differently. The cost of an offshore company, the risks and rules of doing business are different, but the general sense and interest of an offshore company is to attract business and capital.

Negative points and risks

Every state, especially its law enforcement system, declaring the freedom of human rights and protecting the interests of each of its citizens, seeks to intervene in his affairs, and, if necessary, to collect all the necessary information.what is offshore in simple words

When a businessman creates an offshore company or enters into a contract with it, everyone suspects, and government officials do not always have a reasonable interest. Large companies are usually not very interested in contractual relations with offshore companies.

However, the negative points mentioned above worry little about offshore companies and their owners, much more important is the interest of international law enforcement systems, the growing momentum in the fight against terrorism, drugs, laundering of money obtained by criminal means.

In Russia in different years, for various reasons, the Bank of Russia, the Ministry of Taxes and Levies, the Ministry of Finance and other government agencies took various measures, compiled lists of offshore zones, formed the so-called "anti-offshore regulation", proposed procedures for adjusting the customs value and other "preventive adjustments »Business activity of its own citizens.

Extremes are a feature of the Russian mentality; therefore, a business that wants to have an offshore component must first understand an adequate interest in itself from its homeland, its state bodies, enterprises and officials.The latter is a special cohort of interests.

This is a significant moment, but how negative it becomes depends on the business and its owner. The word "offshore" is alarming, but this is not a reason to run your business only in the country of residence or location. The desire to work transnationally is quite natural.

Offshore zones

What is offshore is difficult to describe in simple words. And even by creating a company in one zone, it is impossible to fully apply the experience gained in another. Cyprus is one option, and the Russian version, the Altai eco-economic zone, is completely different.offshore or offshore

Some companies offering registration services provide an offshore zone (or offshore) as the subject of services. A businessman giving a report to his actions thinks over himself: how to do it, what to do, in what country and in what territory it makes sense to create an offshore company.

There are several dozen offshore zones. In addition to Cyprus, popular are Hong Kong, the British Virgin Islands, Anguilla, the Isle of Man, Seychelles, Mauritius, Luxembourg, the Netherlands. Historically, Switzerland has a special status.

The cost of registering a company and the size of taxes differ.There are other significant differences. It is important, having decided to create an offshore, to collect a sufficient amount of information on the maximum available number of variations. One should take into account the experience of business partners (offshore is a slightly different way of thinking, there is something to think about carefully) and not use the decisions of those who sell ready-made offshore companies or services for their creation.

Russia has always been distinguished by a special mentality, not everything can be trusted and one should not always buy a cat in a bag. If an offshore zone is understood to mean the directorate, position and similar “tools”, as in EER “Altai”, then an offshore is a purely Russian version and a completely different tale.

State and offshore interests

Freedom of business and a bank account with all the privileges arising from this is of interest not only to business, but also to the public sector, its officials. And you can not scratch one size fits all.

Both a businessman and an official, creating an offshore in Cyprus or opening an account in a Swiss bank, may well pursue decent and socially significant interests. It is not necessary at all that offshore is almost always bad.offshore or offshore as correctly

It is important to understand that numerous studies and dissertations in the field of offshore business, offshore zones, significant amounts of capital circulating in the offshore web of the whole world - all this indicates that the topic is interesting not only for business, and its major component, but also for the public sector .

Not everything and not always can be described in words, given to the tax or the Ministry of Finance. Some costs you just need to pay, and some income you just need to get. It is not always possible to explain what has been done and why this happened.

What is good and what is bad

Active informatization and electronicization of society, the rapid withdrawal from real money in their electronic options, remote access and asset management, offices full of employees on one side of the planet, when the real owner and manager is on the opposite side of it ...

All this is wonderful and objective, and no single country or even a party of such people united by the ideas of Interpol or an international organization at the UN level can change the objective movement when it has become independent and massive.

The world and the person are so arranged that the desire for good is always in priority, but when the state, its body or the official try to take part in the affairs of their citizens, it is bad. Of course, if a citizen showed himself to be a hardened terrorist, a corrupt official, a drug dealer, or otherwise defamed his honest name - this is one thing, but to designate a bad natural is not a good idea.

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