Offshore What is it? How to open an offshore company?

Tax paradise and oasis - such words can hear about themselves offshore. What are they in practice? What is the mechanism of their functioning? How can I open an offshore company? Do they exist in the Russian Federation? These questions, as well as many others, will be considered by us in the framework of this article.

What is called offshore?

This is the name of the economic zones in which the currency and tax legislation is very flexible or practically not felt at all. In them, taxation by taxes can reach the level of total absence of direct payments. Most often in the role of off-shores are free economic zones, small states or individual territories where local and foreign entrepreneurs can be registered, subject to a preferential tax regime. Almost any country in a certain sphere can act as a kind of refuge for those who wish to pay less. To denote such enterprises use the name "offshore company".

Legislation

Offshore jurisdiction is based on the principle of residence of the company. It is based on a geographical feature. Companies with such status conduct their entrepreneurial activities abroad of the territory where it is registered. An important advantage that these subjects of economic life receive is the ease of the tax load. But this is not the only advantage. So, offshore companies have currency autonomy, as well as a number of benefits in the customs, registration and administrative-controlling area. This is all done to provide confidential information about the current owner, as well as the scope of the company.

Importance of offshore

That such are these subjects, we have disassembled. What role do they play? In order to understand the scale of this phenomenon, we give a few figures. In total there are over 100 offshore centers. The largest of them are:

1. Panama. At the moment, more than 340 thousand companies are registered.
2. Virgin Islands. At the moment, over 200 thousand companies are registered.
3. Ireland. At the moment, more than 150 thousand companies are registered.

Approximately half of the world's total capital turnover is due to the use of offshore centers. One level of net investment exceeds 500 billion dollars! Every cent has its own specialization. So, for banks choose Luxembourg, Switzerland or Hong Kong, whereas for holdings - the Netherlands or Liechtenstein. The centers are selected on the basis of cost optimization parameters for entrepreneurial activities.

Are offshore companies useful for the Russian Federation?

It should be noted that such zones bring income only to the state in which they are created. So, losses due to the withdrawal of non-taxable profits amount to hundreds of billions of rubles. Now they speak with confidence about tens of thousands of offshore companies that were founded by immigrants from Russia. According to some data, the number of these subjects can be expressed in a number that is ten times higher than official statistics.

Is the use of this mechanism legal?

The legislation of the Russian Federation grants foreign legal entities the right to carry out entrepreneurial activities on an equal basis with local companies. Therefore, in Russia, offshore activities are completely legal. If you rely on the data of the state statistical service, the confirmation of this is a constant growth in the number and volume of transactions with them. The activities of offshore centers are regulated directly by international legislation. Of course, they must comply with national acts, but with their conflict, the former have the advantage. In addition, the use of an offshore mechanism not only protects the company's assets and minimizes taxes, but also helps with access to international markets.

Why register an offshore company?

Growing economic and political instability, globalization processes and rising taxes are the main reasons why businessmen choose such places to protect their assets and investments. And given that this is also a legal way to reduce taxes, it also allows you to receive benefits and benefits that are not available in your home countries. In addition, there are still positive sides:

1. Absence of bureaucracy.
2. Confidentiality.
3. Management of risks.

Therefore, many entrepreneurs are interested in how you can register an offshore company.

Legal framework

Feature of offshore companies is the limited responsibility of investors. Legislation, which provides for the restriction of the enterprise as a legal entity in the sphere of responsibility as an individual representative, was first introduced in the XIX century. And to this day, the delineation of the company from owners and directors allows you to reduce the losses that people bear in case of unsuccessful economic activity. This principle is also used to minimize taxes. Therefore, residents of countries with a high level of taxes and use offshore companies to get more revenue, because they will be subject to taxation under the laws of the registrar country.

Which jurisdiction is best to choose?

In total there are over 100 financial centers. And the choice of a suitable jurisdiction requires an attentive approach to this issue. First of all, it is necessary to give priority to countries in which there is a stable political situation and economic stability. If it is important, it is necessary to ensure that the legislation ensures the confidentiality of the owner. As other factors, you can choose the requirements for reporting and audit, the presence of currency controls, as well as a developed banking system. Also very important is the existence of existing agreements to avoid double taxation of offshore with the country where business is planned. An additional group of factors can be attributed to the cost of registering the company, as well as obtaining the necessary professional services.

How does an offshore company register?

Initially, the name is checked. The rule of good taste is to make it so that it does not look like any of the promoted brands. In this case, the registrar can simply refuse. There are also bans on the use of certain words: royal, governmental and so on. For some others, a license is required: bank, insurance, finance and so on. There may also be restrictions on the paid share capital: on the Isle of Man you will need an amount of one hundred thousand British pounds. You can make a large amount. But often there are annual fees that are withdrawn from the capital, so it is advisable not to be substituted. Management is carried out with the help of shares. They come in two types: nominal and bearer. In the first case, the certificate indicates who is the owner. The bearer is allowed to provide greater confidentiality, but if the document is lost it will be difficult to prove that you are the owner of the company. This is what offshore companies are. We have already considered what these subjects represent themselves. It was general information. Now let's look at offshore in Russia.

Situation in the Russian Federation

The advantages of working in our offshore companies is that it does not matter where the activity is conducted - taxes are paid at the place of registration. If everything would be so simple, but, alas, it is not so. In reality, we have to face a number of difficulties and problems:

1. When creating a Russian offshore, do not think that everything will be as simple as with foreign counterparts. For some significant reduction in tax burden or confidentiality, there is no hope. In general, if you compare with the classic understanding of offshore, the designation is their strongest relationship.
2. Problems with local tax services. If the company does not function at the place of registration, then it will be necessary to give explanations regarding the scheme of work for local officials. And, given the dislike for the withdrawal of amounts from the local budget to distant subjects of the federation, it is necessary to prepare for their considerable resistance to this process.
3. Due to the fact that the company is considered a Russian legal entity, quarterly reporting is mandatory. All this will have to be done, and at the place of registration!
4. Despite the positive aspect, such as lower tax rates, it will be necessary to make quarterly fixed payments. Their size varies depending on the economic zone.
5. Often you can hear complaints that opening a normal currency account to conduct a full-fledged business is just as difficult as the usual Russian legal entity.

From all this we can conclude that opening a company in a special economic zone inside the country does not have such advantages as abroad. Therefore, you can often hear that the liquidation of the offshore in Russia, and instead of it opens an enterprise abroad.

What financial centers exist?

Finally, we suggest to find out which countries are offshore. Perhaps you will someday have to open your company in them. So, the list of offshore companies:

1. Classic offshore. Panama, Dominica, the Seychelles, Belize, Mauritius, Saint Kitts and Nevis.
2. European jurisdictions. Czech Republic, Slovakia, Holland, Bulgaria, Switzerland, Great Britain, Poland, Estonia, Latvia.
3. Asian jurisdictions. Hong Kong, Singapore.
4. Specific jurisdictions. USA, Canada, New Zealand, South Africa.

In general, everything is clear, but let's talk a little about specific offshore companies. What is a regular financial center? This is a territory with low taxes. In the fourth group they are quite high. But it is possible to reduce taxes by using different mechanisms. In the end result, the tax legislation will not differ much from what is in the classical offshore, although their level will not be achieved.