Warning:  Are you looking for some professional firms who can advise the best to you for choosing a best offshore jurisdiction and do your offshore business.  If so, please take a couple of minutes to read throughout our website, you will get the best information you never get from other professional websites.

What is an offshore company ?  Most people must know that offshore company is probably come from Anguilla, Belize, BVI, Cayman Islands, Hong Kong, Marshall Islands, Panama, Seychelles, ... etc, as they are more common in the world.  What's above such jurisdictions like China, South Korea, Singapore, Italy, France, Germany, ... etc.  Why's they are not offshore jurisdictions.  You may say they are absolutely not offshore, in my understanding.  Why ?  In fact, each jurisdiction can be classified as offshore company.  What is an offshore company, as compared with onshore company or called local company ? 

Offshore company is defined as a company registered in a country which you are not residing in.  Onshore company is defined as a company registered in a country which you are residing in.  Therefore, if you live in USA and you register a LLC in USA, that LLC company is a local company.  If you live in USA and you register a WOFE in China, the WOFE in China is an offshore company.  Therefore, France, Germany, China, Italy, etc ... can be an offshore company.  Whether they are offshore or onshore depending upon where you live.

Why you choose offshore company to do business instead of choosing local company ?  Take an example.  You live in Dubai, you intend to run international import and export business.  How could you choose ?  You register a local company in Dubai or an offshore company in, say, USA.  In this case, you can get full tax benefits if you choose Dubai because Dubai is an exempted tax country.  Anyone who invests in Dubai can enjoy full exempted tax benefits.  In this case I want to say local company does have benefits, in certain circumstances.  Therefore, when you consider doing business, first you have to consider whether your country has tax benefits for investments, either for local investments or overseas investments.  If you live in Dubai, it is better to register a Dubai company instead of other offshore companies.  Or you can choose to move from other countries and live in Dubai and do business in Dubai and enjoy tax benefits.  It is an alternative if you are not living in Dubai.  I have my client who chooses this alternative.  However, he, as an experience businessman, finally, chooses to transfer almost 80% of his assets to new formed Hong Kong company.  However, he still lives in Dubai.  I will explain to you later.  I just want to explain you that when you consider to do business, first consideration is which jurisdictions can provide tax benefits to local investors or overseas investors.  I am now intending to say that Dubai is a not good jurisdiction, in my opinion, although she provides full tax benefits to investors.  Remember in the first example, if you choose registering a USA company in stead of USA, your offshore company gets not benefits at all and you need to pay USA tax.  But if you register in BVI instead of Dubai, the result will be the same, you need not pay any tax to Dubai government nor BVI government.  Why ?

This is the second issue I want to make you know.  In the global world, there are two classifications of taxation systems, broadly speaking.  Global tax and local tax systems.  Global tax system is the tax system that the tax is charged upon global sources.  That is to say the tax is charged upon all the sources of income no whether where it came from.  Where means what country is ?  Therefore, if you register a USA company, you do a business in Dubai, you are still required to pay USA tax because in the USA tax law, sources of income outside USA are still subject to USA tax.  However, if you are living in USA, and choose UK company or New Zealand company or Canada company, ... etc, as these countries are in global tax systems, even in USA, the sources are in INDIVIDUAL LEVEL NOT JUST COMPANY LEVEL, your tax issues are complicated as you need to pay USA individual tax and either UK tax, New Zealand tax or Canada tax, etc ... your tax position is rather complicated if you want to claim tax credit as you had paid tax either in USA (in individual level), say for example, and you receive a tax demand note from UK (in company level) and you want to claim for double taxation payments.  In this situation, either you have to pay two country tax payments if the country has not signed double taxation treaties between themselves or luckily you only pay for one tax payment in one country.  How if you paid a tax amount higher than that if you paid in another country ?  Sorry you cannot get credits for next year or get refunds.  It is the second issue I want to make you know is that when you consider offshore jurisdictions, you must know whether they are in global tax system or territorial tax system.

Can Dubai company give me tax benefits in the following senerio.

I run a food restaurant in BVI, and register a Dubai company because I know now Dubai is famous for tax benefits.  In BVI, I will rent a place, and will recruit staff, and run "REAL" restaurant business there.  Certainly not, you have to pay tax in BVI; what if I choose Seychelles, certainly not, you have to pay tax in Seychelles; what's about if "Anguilla, Belize, Marshall Islands, Mauritius, Panama, etc" .... YOU HAVE TO PAY TAX TOO in ALL OFFSHORE JURISDICTIONS.  WHY ?

It is because you are not running offshore business YOU ARE USING OFFSHORE COMPNAY TO RUN LOCAL BUSINESS.  THERE IS NO SUCH LAW THAT OFFSHORE COMPANY CAN EXEMPT FOR TAX FOR YOUR LOCAL BUSINESS.  If it could, the government must have gone bankruptcy because all businessmen registered offshore companies to run local businesses and they enjoyed ALL TAX BENEFITS.  In practice, if you do so, you are using offshore company to evade local tax and, IN LAW, it is illegal.  You are not using offshore company to avoid local tax.  In legal term, evasion is an action which breaches the tax law to escape tax; avoidance is an action which complies with the tax law to avoid tax.  How to avoid local tax ?  Offshore company can get offshore tax benefits if you do offshore businesses or operations in such as way that either one jurisdiction cannot rule out your business or operations.   

For example, you live in Germany.  You intend to do offshore trading business in such as way that you buy goods from China and sell to UK.  In this case, neither Germany, nor China and UK can rule you to pay tax because:

1.      You only live in Germany;

2.      You only buy goods from China and;

3.      You only sell to UK.

Neither one action can make you sources of income and liable to pay tax.

But either one pulse one may make you liable to tax because for examples:

A.      You live in Germany, and you buy goods from Germany and sell to China;

B.      You live in Germany, and you buy goods from Germany and sell to UK;

C.      You live in Germany, and you buy goods from China and sell to China;

D.     You live in Germany, and you buy goods from UK and sell to UK;

E.      You live in Germany, and you buy goods from China and sell to Germany;

F.       You live in Germany, and you buy goods from UK and sell to Germany;

G.     You do not live in Germany, and you buy goods from Germany and sell to Germany;

H.     You do not live in Germany, and you buy goods from China and sell to China;

I.        You do not live in Germany, and you buy goods from UK and sell to UK;

In these examples, A is probably chargeable to Germany tax because the buying sources are in Germany; B is probably chargeable to Germany tax because the buying sources are in Germany; C is probably chargeable to China tax because the trading operations are in China; D is probably chargeable to UK tax because the trading operations are in UK; E is probably chargeable to Germany tax because the selling sources are in Germany; F is probably chargeable to Germany tax because the selling sources are in Germany; G is probably chargeable to Germany tax because the trading operations are in Germany; H is probably chargeable to China tax because the trading operations are in China; I is probably chargeable to UK tax because the trading operations are in UK.

Only in the situation that you live in one country and you buy goods from another country and sell to other country, you get full offshore tax benefits.

The third issue I want to make you know is that when you consider offshore company, you must consider how you arrange your offshore operations so as to get real offshore tax benefits.

However, before you go ahead to register an offshore company, please spend a little minutes more to read out below as they are indeed very significant.

Mr. Simon is a smart businessman. He runs international trading business. His trading business was very successful and he made a lot of profits.  At first, he came to Hong Kong and registered a BVI offshore company and opened an offshore bank account, a couple of months later, the bank suspended his corporate bank account without a reason, but only sent a letter to him and explained that your money is suspected in our record.  The bank required Mr. Simon to prove how the money he got ? Mr. Simon came to Hong Kong and talked with the bank manager and explained that it is the money from his trading business. The bank manager asked for business proofs, and said, "Do you have proof records ?".  Mr. Simon explained that my business is done overseas, there is not required to keep any business records at all, my BVI agent hasn't asked me to file accounts to BVI Companies Registry ? The bank manager said, "Sorry, I can't help you", you have no business proofs, we have to suspend your accounts until further noticed.  Mr. Simon found a lawyer and suited the bank but at last he got nothing.

You feel terrified, right ?  There might be one day, your offshore company offshore bank account will be suspended and forfeited your money, YOUR ASSETS, YOUR MONEY(S)  ..... BECAUSE OF SUSPECT CASE OR SUSPECT CRIMINAL OR MONEY LAUNDRY ACTIVITIES OR  ....... You, as an experience man, YOU MUST KNOW IT WILL COME TRUE.

The forth issue is that you must keep proper books of accounts and records and keep every document in details.  It is better that you find an international auditor like us that we keep the accounts for you and make the accounts audited every year and issue an international auditor report.  Because it is external approved evidence vertified by recognized professional accounting body that your businesses are do true normal businesses. 

In the final issue, please look the following real story.

Mr. Joe is a businessman.  Five years ago, he formed a BVI offshore company through a local agency.  He formed this company so as to sign up contracts with other suppliers and customers.  The business has done very successful and has been growing up and now with more than 20 staff.  Later on, because of some reasons Mr. Joe didn't know, the local agency rose up the service fees up to US$2,000 per year, only claimed that the fees do include "government fees and our service fees."  Because of this sharp increase, he negotiated with the agency and asked for price reduction but failed and at later stage decided to change agency.  He thought he can sign up some papers and get changes because he is a sole director and shareholder.  Surprisingly, it is not such a case.  He cannot get change.  The result is that he has to either pay the increased fees controlled by the local agency or give up the company and form a new company instead.  You may not know that when you form an offshore company in some jurisdictions, you cannot change local agency or you have to pay a huge amount of compensation as a change fee. 

BECAUSE:

A) THERE IS NO SUCH LAW TO ALLOW DIRECTORS/SHAREHOLDERS TO MAKE THE CHANGE OF LOCAL AGENCY;

B) IT IS A COMMON PRACTICE NOT ALLOW TO CHANGE OR A COMPLICATED PROCEDURE TO MAKE A CHANGE;

C) THE LAW OR PRACTICE NEED TO PROTECT THE LOCAL AGENCY

There is no issue if you don't change the local agency.  However, if it is the case that EITHER

A) YOU LOST THE CONTACT DETAILS OF LOCAL AGENCY, OR;

B) THE LOCAL ANGENCY CLOSED THE BUSINESS, OR;

C) YOU CANNOT FIND THE LOCAL AGENCY BECAUSE THEIR CONTACTS HAD CHANGED

AND YOU HAVE USED THE OFFSHORE COMPANY TO SIGN UP IMPORTANT CONTRACTS, AGREEMENTS, ETC.... AND

NOW THE BUSINESS PARTIES NEED YOU TO PROVIDE TWO DOCUMENTS, ALWAYS AT LEAST IN GENERAL CASES:

i) CERTIFICATE OF INCUMBENCY ..... the local agency signs up to certify the structure of the company such as directors, shareholders, share capital, etc.

ii) GOOD STANDING LETTER ......... the local agency signs up to certify that the company is now in existence and in good records.

CAN YOU FIND ANOTHER AGENCY TO HANDLE FO YOU ?  THE ANSWER IS ABSOLUTELY NO OR UNCLEAR.

The answer is unclear because that you might find an agency and because he wants to do the business with you, he might promise you first and later say "sorry" I cannot help you and recommend you to form a new company.

AS A PROFESSIONAL FIRM LIKE US, WHEN YOU READ OUR WEBSITE, I HAVE A RESPONSIBILITY TO TELL YOU THE TRUE; I DON'T THINK YOU WILL GET SO MUCH VALUABLE INFORMATION FROM OTHER PROFESSIONAL WEBSITES, THEY ONLY SHOW GENERAL INFORMATION YOU CAN GET FROM A LOT OF WEBSITES.

Now I show up what the general characteristics that an offshore company must have at least:

a) Tax benefits - if the business operations are arranged carefully the profits from the operations may become zero profits tax or a little profits tax;

b) Simplified set up procedure and requirements - some offshore companies can be registered within the same day; other offshore companies may require only one person to be registered.

c) Public undisclosure - some offshore companies allow public search for details; other offshore companies cannot get public search.

d) Costs and the fees - some offshore companies cost a little money, only a hundred of dollars; other offshore companies may cost thousand or even million of dollars.

e) Reporting requirements - some offshore companies require periodic financial reports being filed; other offshore companies need not filing anything at all.

f) Limited liabilities - almost all offshore companies are private limited company in nature, the investors who subscribe the shares of the offshore company are limited to contribute up to this amount (of the shares), and no more.

In additional to the above general characteristics, together with the four issues I just mentioned above, you have to consider one more point before to go ahead to choose an offshore company to be registered.

I just mentioned that Dubai, for example, is a tax free country but smart businessmen (like my client) will not invest in Dubai nor they will use Dubai company as an offshore company to do offshore business.  Why ?  BECAUSE DUBAI CANNIOT GIVE FULL LEGAL PROTECTION TO INVESTORS in terms of disputes, legal proceedings, legal processing, etc.  For example, if the bank in Dubai detains your money for some reasons you may not know why or agree with it, how can you do ?  Sorry ?  If you need some proofs from official departments in Dubai, can you get help ?  Sorry ?

So you have to consider the complete and reliable legal systems of an offshore jurisdiction.

Now you only take a little minutes you get a lot of the full, reliable, invaluable and creditable information from my website.  I AM SURE THAT YOU NEVER GET ALL FROM OTHER PROFESSIONAL WEBSITES.  DO YOU AGREE ? 

Who are you ? Why are you getting so much offshore knowledge ?

Our firm is Chui, Lai & Co.

We, as a CPA firm (international based), are young, energetic, trustful and reliable professional.

We provide professional services for international investors and businessmen for
- Hong Kong Company Formation
- Offshore Company Formation
- Auditing and accounting
- Consultations
- Company secretary
- Company taxation and tax planning
- Offshore bank account
- Trust arrangement

We use our professional knowledge and experience to render the professional services our clients, existing or potential, request so as to expand their businesses overseas.

Our clients come from different businesses including consulting, manufacturing, professionals, trading, ... and so on. They come from overseas, Hong Kong and Mainland China.

Senior Partner of Chui, Lai & Co.

Mr. Stephen Lai

ACCA (a fellow member of the Association of Chartered Certificate Accountants)

HKICPA (a practising member of Hong Kong Institute of Certified Public Accountants)

MBA ( Master of Business Administration from Heriot-Watt University, UK)

PDA (Postgraduate Diploma in Business Administration from Heriot-Watt University,UK)

PCA (Postgraduate Certificate in Business Administration from Heriot-Watt University,UK)

LLB (Ungraduate of Law Degree from Nottingham Trent University, UK)

Here is person whom you can trust and whom you can rely on. Stephen says, "I have provided professional services for my clients, overseas, local or mainland china, for decades. I have used my professional knowledge and experience to advise my clients for offshore issues, help them to solve the issues they have." 

Here are their says:

Mr. Ken Mulrooney says, "Stephen is helpful and professional. He can answer what I have for my business. I can open my bank account within a couple of weeks. This guy, I totally trust him."

Mr. Victor Draganiuc say, "I never meet such guy who is patient, responsible and trustful. He can claim my offshore profits. It is real tax free with proven.

Mr. Zaini say, "I had used online formation service previously and registered one BVI company, but I cannot open my bank account. The service provider is not helpful. Their after-sales service is bad. Stephen is a good guy. He can open a bank account for me at Standard Chartered."
Stephen says “When I design this website, I promise I never use online services in such a way that my client just fills up details and pays money and gets everything done.” In my understandings, I feel I am not totally irresponsible. I feel I must get full understanding from my client first and I can advise what is best for him. Therefore, when I design my website and my viewer comes and has a look, he will get true benefits from offshore. WHETHER HE FINALLY COMES AND FINDS ME IS NOT IMPORTANT.”

We have worked with some international HSBC bank that we can open an offshore bank account for almost offshore jurisdictions.  Clients only provide us the following documents:

1)      Passport copies

2)      Address proof

We can prepare for relevant documents and submit to the bank for approval.  Generally, if clients come to Hong Kong, we can arrange the banker to issue an offshore bank account, with multi-currencies, token and pin, as well as debit card, within half an hour.  Also if the clients are very urgent, we can send the bank forms for them to sign.  It will take 7-8 working days to get everything.

In 2008, we are rewarded as the best partner with HSBC.

What 's you do next ? Just go to Order Form section and download the form, and fill up the details and e-mail back to us. Our staff will prepare for relevant documents and e-mail back to you for signing, together with other documents such as bank documents. If you have further issues, please e-mail to me for further issues.

In finalizing my website, I list a few offshore jurisdictions that we will do for my clients, not because we don't know how to form other jurisdictions, but we think our list would get the full offshore benefits and the most common for investors for offshore business and if you want to know more for each jurisdiction please click on each jurisdiction below:

Anguilla, Belize, British Virgin Islands, Hong Kong, Marshall Islands, Mauritius, Panama, Samoa, Seychelles, UK and USA.