after registering an offshore company, foreign trade through the offshore company can be exempted from a considerable amount of tax. In fact, you don't have to be a citizen of this country to register a company in some overseas countries, and foreigners can also register a company. For example, if you want to register an offshore company and choose to register in an island country such as BVI, Cayman or Bermuda, not only the registration requirements are low, but also the tax advantages are remarkable.
It is impossible for many large and medium-sized countries to register companies in these countries without paying the company business tax, sales tax or even personal income tax, and only charging a small amount of annual management fee. Being able to register a company in such a country, especially where the parent company is located, has obvious advantages.
At present, the most sought-after offshore company in mainland China is registered in Hong Kong. Although Hong Kong is not as preferential as island companies in terms of taxation, the simple tax system and low tax rate in Hong Kong are also quite affirmed in the international market. Therefore, there are not a few mainland entrepreneurs and individuals who have chosen to register their companies in Hong Kong in recent years.
In addition, after registering an offshore company, you can enjoy various privileges when you return to China as a foreign investor. Generally speaking, returning to the original country as a foreign-funded company has preferential treatment for foreign-funded companies, especially in developing countries, such as China. Generally speaking, the benefits of tax exemption, tax reduction or subsidies for the first few years are given, and some domestic companies often have privileges that are not available.
Entering a market like China in the name of an overseas company also has a special function of protecting its own interests. Foreign-funded companies register and invest in shares in China, and they have more relaxed treatment in terms of entry, exit and share conversion, which is very meaningful for those who need to exit safely after making profits.