Li Zhuo letter transact offshore related business

China foreign investment and overseas listing of the emergence of a new phenomenon of foreign origin to invest in the Hong Kong-based company, while an obscure Caribbean island of the British Virgin Islands accounted for second place, followed by the Cayman Islands offshore jurisdictions. In fact, in recent years through Hong Kong, the British Virgin Islands, the Cayman Islands, Bermuda and other places registered "offshore company", and then return to the mainland to set up offshore companies by foreign-invested enterprises have become among many mainland enterprises open secret . Mainland enterprises to set up offshore companies in offshore locations above, its main purpose are the following: listed in other US, Hong Kong or Singapore to; the establishment of holding companies, were transported to the capital; tax planning, global trade, joint venture companies. Some countries and regions of the world (mostly island states) in recent years have resorted to legal means to develop and nurture some special liberal economic regions, which are generally referred to as offshore jurisdictions. The so-called offshore companies in the offshore area that refers to the establishment of a limited liability company or limited. Such as the British Virgin Islands, Niue Island, the Bahamas, the Seychelles, the Republic of Panama, the Republic of Mauritius, to allow international companies who set up an international business in its territory. The local government of these companies without any tax, charge only a small amount of the annual management fee, while all the major international banks have recognized these companies provide convenience for the establishment of bank accounts and financial operations. Under normal circumstances, such regions and countries with the world's developed countries have good trade relations. Whether registered in any such country or region offshore company, with a high degree of confidentiality, reduction of the tax burden, no exchange controls three major characteristics, which attracted many businessmen and investors to choose the offshore company's development model. Compared with the general offshore company Limited, the main difference in the tax. And practices of turnover or profits of tax normally use different government offshore jurisdictions only levy an annual management fee to offshore companies, no longer levy any taxes. And almost all offshore jurisdictions were expressly provides that: shareholder information, equity ratio, earnings and other company enjoys confidentiality rights. And "offshore" means that an investment company registered in the People's offshore jurisdictions, but investors do not have to visit the local area, its operations can be carried out directly from anywhere around the world.