Offshore zones
Today, most ordinary people mistakenly accept the term “offshore” as an illegal, criminal entity, all of whose activities consist in tax evasion, money laundering, obtained by illegal means. This article will help you understand what offshore companies and offshore zones are.
An offshore company can be called any object of business activity that was registered abroad of the country of the initial citizenship of its owner. But in most cases, this term is located in the company, the place of registration is one of the currently existing offshore zones.
In many cases, the laws of such countries allow foreign investors to open companies in their territories only if these enterprises carry out commercial activities exclusively outside the offshore zone. Also, the opening of offshore companies can significantly optimize business taxation (or the complete elimination of the tax burden). Also, owners of offshore companies are exempt from the need for annual reporting on the activities of the company.
Owners of companies opened in offshore zones should also legalize documents. For this, a package of documents of an offshore company is notarized. This is necessary in order for the owner of an offshore company to have the opportunity to use these securities in other jurisdictions. What are these documents for?
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To open an account with banks in another country (the country of incorporation of an offshore company is not considered).
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To open branches abroad, etc.
Protection of confidential data in offshore zones
An additional reason for the popularity of offshore zones is the guarantee of privacy protection. All information about the owners of offshore companies, management and shareholders is not available to third parties. For additional confidentiality protection, a nominal service is being actively used today - appointment of directors and shareholders of third parties to the post. It often requires the appointment of the head of only local residents.
The issuance of confidential information is possible only in court, at the request of law enforcement agencies (both local and international).
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