1.
Where should offshore companies be registered?
There is no good or bad registration place, or say the quality of the offshore company somewhere is higher
and some taxation is more slack, it depends on the needs of clients. Please communicate with our consultants
to find the best solution for the registration and application of your offshore company.
2.
What is the difference between an offshore company and a local company?
Many people misunderstand that offshore companies are overseas companies or foreign companies,
compared with local companies in China, without paying taxes. Although these are several characteristics
of offshore companies, the definition is wrong. The so-called “offshore” is a matter of right of jurisdiction.
Any company exists under the authorization of a specific company law. A Chinese company is established under
China's Company Law, so an offshore company only refers to that established under the "Offshore
Company Law" enacted in a certain country or a region where the company law can be formulated
independently.
Therefore, from this perspective, the difference between offshore companies and Chinese local companies is defined more accurately.
In other words, the particularity of offshore companies is stipulated in the “Offshore Company Law”.
Non-offshore companies (local companies) in a country cannot operate in the same way as offshore companies.
We list a few differences below:
- 1.
-
The difference in taxation: Offshore companies generally do not pay any taxes when operating internationally,
while local Chinese companies must pay taxes to the government.
- 2.
-
The difference in capital: Offshore companies mostly implement an authorized capital system according to
the British common law, no registered capital verification is required.
- 3.
-
The difference in residence: The registered address of an offshore company can be used repeatedly,
while in China, an actual residence must correspond to a company.
We often hear a statement of registering an overseas company. This is a more popular statement for the offshore company
in the early 1990s, there is no strict judicial definition. Therefore, the registration of overseas company mentioned
by many clients is also the registration of offshore company. For more differences, please contact our consultants.
