For some companies that want to register companies overseas, many want to register but are hesitant to do so. On the one hand, there are many favorable policies for foreign corporation registration. Now we will explain the precautions for foreign corporation registration one by one, for the reference of enterprises who intend to register overseas companies.
Ⅰ. Why do companies need to register overseas companies?
1. A considerable part of tax can be exempted, and tax benefits can be enjoyed after returning to China as a foreign investor
Some overseas companies do not levy corporate business tax, sales tax, or even personal income tax, which are usually paid by companies. They only pay general operating fees. At the same time, companies that register overseas and then return to the original country as a foreign-funded company generally have preferential treatment for foreign-funded companies, especially developing countries such as China, which generally give the benefits of tax exemptions, tax reductions or subsidies for the first few years, and often have privileges that certain domestic companies do not have.
2. The registration fee for overseas companies is low, and the procedures through the agent are simple
Most overseas companies have low registration fees and only need to pay simple maintenance fees, and most overseas companies are registered with long-term political stability, political neutrality, judicial system and social culture, as well as the modernization of the financial and economic service system. Complete financial and financial services.
3. The personal data of company management/beneficiary is highly confidential
The shareholder identity, director register, shareholding ratio, income status and other information of overseas offshore companies are highly confidential and protected by law, and cannot be viewed by the public. Only companies with trust management that have legally obtained the qualification to supervise the import of offshore companies can view them. At the same time, the law prohibits the trust management company from arbitrarily leaking relevant materials to the outside world.
4. Simple management and operation
The management of overseas companies does not require the annual general meeting of shareholders and the board of directors. The management procedures are simple, and you can devote all your energy to the company's operation and management.
Ⅱ. How to choose the right "Registration place"?
Because there are too many popular companies to choose from, and the popularity of the following effects, many people are at a loss. Simply divided into the following types:
1. International trade
In order to facilitate international trade, there are no foreign exchange controls, free trade, complete market infrastructure, and convenient transportation. Countries/regions with free and stable international image and trade can be preferred: Hong Kong, the United Kingdom, the United States, the United Kingdom, Australia, Japan, Germany and other coastal places that are convenient for trade and have a high international status.
2. Tax planning
Reducing the tax burden is one of the most important goals of many registered companies. Through reasonable tax planning, the purpose of saving tax costs is achieved. At the same time, we should focus on the bilateral tax agreement between the place of registration and my country, and the exchange of tax information between the place of registration and the country of purchase of raw materials and the country of sales counterparty. There are mainly: Cayman Islands, BVI (British Virgin Islands), Seychelles, Hong Kong, Marshall and other countries/regions with extremely low tax rates and even tax-free.
3. Listed financing
In order to obtain financing, many international enterprises obtain investment by setting up a VIE structure and applying for listing in the name of a holding company in the location of the overseas securities market to be listed or in a country (region) where it is permitted. Mainly suitable for this are: Cayman, Hong Kong, BVI, Seychelles, Singapore, USA
4. Return investment
Round-trip investment refers to the economic behavior in which domestic investors in an economy transfer their currency capital or equity to overseas, and then invest in the economy as direct investment, mostly in the form of cross-border mergers and acquisitions. There are mainly Singapore, Hong Kong, the United Kingdom, Australia, Thailand, India and other countries with good investment environment or large demand in Southeast Asia.
Ⅲ. How to choose a company registration service provider?
For start-ups or players expanding into new businesses, it is important to hire a good company service provider who will collect the required information to assist in company registration, as well as provide follow-up management services. Such as filing financial reports, annual tax returns, etc.
Contact Jilian Consultants to know more information like overseas company compliance services and overseas company reorganization.
In addition to overseas company registration, our company also provides merger services, if you want to know about international mergers and acquisitions, the pricing mechanisms for overseas mergers & acquisitions, the overseas mergers and acquisitions advisory and overseas mergers and acquisitions consulting process and content, please contact us.
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