Tuesday, October 31, 2017

Is it legal to use offshores?



Owning an offshore company is absolutely legal. Before starting to register the offshore, it is necessary to identify its role and main functions. The first thing you need to describe are the goals of the offshore company, and then choose the country of its registration.

Not all jurisdictions are suitable for certain types of company activities. Countries with high tax rates introduce countermeasures towards widespread offshore financial zones.

In addition, some states pursue a discrimination policy to taxes on direct payments from resident companies to offshore jurisdictions.

These jurisdictions include the Russian Federation, where is a law on Controlled Foreign Companies (CFC). Its essence is the fact that a resident of the Russian Federation is in charge of a foreign company obliged to pay taxes at Russian rates. There is the possibility of using a foreign company and paying taxes, if the offshore company belongs to a resident of the Russian Federation. Before registering an offshore company, you need to obtain relevant information about the existence of a offshore companies "black list" and discrimination laws in your country.

In fact, offshore company is a resident company with an optimized taxation system.

Advantages of offshore:


-Fast registration and ease of management.
-Beneficiary's confidentiality.
-Increased level of business confidentiality.

Offshore company is a foreign company registered in a state with an optimized taxation system. The using of offshore services is absolutely legal if it does not violate your country's legislation.