Offshore financial center-what is the Offshore financial center?
Offshore financial centers to the Eurodollar market as an example, it is a very typical offshore financial center, it is a free transaction, the freedom of unregulated international financial markets. Offshore financial business is part of wholesale banking, deposit and loan amounts are large, trading partners are usually banks and multinational companies, their business is usually the introduction of foreign capital, and then loaned to foreign capital. Individual investors can also be institutional investors.
Offshore financial centers - basic profile of an offshore financial center, the relatively well-known offshore financial center of the British Virgin Islands, Cayman Islands, the Bahamas, Bermuda, Western Samoa, Anguilla Islands. Offshore Company Limited, compared with the general, the main difference between the tax. With the commonly used turnover or profits tax practice is different from offshore jurisdictions, offshore companies to pay the Government only to the annual management fee, in addition to no longer charge any tax. In addition to tax concessions, almost all of the offshore jurisdictions expressly provides: information on the company's shareholders, equity ratio, earnings and so on, to enjoy privacy rights, such as shareholders or not, may not be disclosed. Another advantage is that almost all major international banks have recognized these companies, such as the United States, Chase Manhattan Bank, Hong Kong, HSBC, Singapore Development Bank, the French Calyon Bank. "Offshore" companies can be opened in the bank account number, in the financial operation is extremely easy. Such "off-shore" region and the countries and the world's developed countries have good trade relations. Therefore, overseas offshore companies is that many large multinational companies and high worth individuals have frequently used financial instruments.
Offshore financial centers - the major categories of the international offshore financial center and mapping of the major offshore financial centers in theory can be divided into three categories:
1, to London on behalf of the London-based offshore financial center. Features: The currency is the foreign currency operations, market participants can operate offshore financial business, they can operate free-market business. There is no restriction in the management and operation of offshore businesses do not have the financial authorities for approval.
2, with New York as the representative of the New York-based offshore financial center, offshore business operations of domestic banks and foreign banks must apply to the financial authorities. Offshore offshore financial services business can be exempt from reserve requirements, deposit insurance concessions enjoyed the interest withholding tax and local tax exemption. Offshore business operates outside the currency could be money, it can be the national currency, but the offshore business and traditional business must be separate accounts.
3, avoidance-based offshore financial centers, generally located in the scenic islands and ports, political stability, tax incentives, there is no financial controls. This is the sense we usually referred to offshore financial center. In recent years, some of the world countries and regions such as the British Virgin Islands (BVI) and so have resorted to legal means to try to figure out and cultivate some special liberal economic region, allowing the international community in its territory, the establishment of an international business company, these areas generally referred to as offshore jurisdiction or as an offshore jurisdiction. The so-called offshore companies in offshore jurisdictions that generally refers to the establishment of limited liability companies or international business companies.
