> What is Offshore Company?
> General Characters of Offshore Companies
> Use of Offshore Companies
> Factors to Considerate
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> Q&A for Offshore Company
> Open Bank Account
1. How to Open Bank Account
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International Trade
The movement of goods across international borders offers many opportunities for the use of offshore companies. Offshore companies are often interposed in between buying company and selling company to
1. Keep the buyer and seller's identity confidential
2. Centralize procurements to reach scale of economics
3. Accumulate profits in tax favorable jurisdictions
4. Act as commission agencies
The recently developed ecommerce often conduct their trading business or consultancy services to overseas contractors or foreign clients via offshore companies.

Financial Holding and Investment Activities
Offshore companies are often used for variety of corporate financing and investment activities, some of which are indicted in the followings:
1. To invest into foreign based subsidiary or associated companies,
2. To mix profits and losses from subsidiaries to lower the effective tax rates
3. To obtain financing from institutions that are themselves free of high taxation and therefore lower the financing costs
4. To hold foreign real estate,
5. To hold equities or bonds quoted on overseas or domestic stock exchanges
Taxations on capital gains arise from the disposal of particular investments or on dividends payments or on interests received may be reduced or even be exempted through the use of an offshore company incorporated in a low or zero tax jurisdictions

IPO Planning
Offshore companies are often used by companies who plan to go IPO overseas. For example, companies wish to be listed on the Hong Kong Stock Exchange must be incorporated either in Hong Kong, Cayman Islands, Bermuda or P. R. China. Different rules and requirements apply for Chinese companies. Proper structure is essential to the success of IPO.

Special Projects
Offshore companies are often used to establish separate legal entities to hold projects, to form joint ventures, or to use offshore funds to invest domestically. A separate legal entity can effectively minimize risk exposure and insert layer of protection to the established business.

Intellectual property such as patents, copyrights, designs, computer software, and technical know-how may be owned by an offshore company. The rights can be licensed to companies around the world and the royalty payments can be accumulated offshore. International franchises can be similarly structured through an offshore company.

Utilising Double Taxation Treaties
Offshore companies are often used by companies wishing to conduct business in a country where there is no double taxation treaty with their home country. An intermediary offshore holding company in a jurisdiction where there is a suitable treaty enables those companies to benefit from double tax treaties and add more flexibilities as to where the company wishes to re-invest its foreign source income and when to remit foreign earned profits back to there home country where tax credits will be given.

Professional Services
Professionals and professional firms to offer their services internationally often use offshore companies to reduce their tax liabilities.

Employment Vehicle
Multinationals often use offshore company as a vehicle to hire overseas employees and to reduce their tax liabilities.

Offshore Banking
Bank accounts can often be opened under the name of offshore company either onshore or offshore which enable the company to deal with foreign currencies with more flexibility.



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