Ýêîíîìè÷åñêèå íàóêè /
2.Âíåøíåýêîíîìè÷åñêàÿ äåÿòåëüíîñòü
Student Boiko A. I.
Donetsk national university of
economics and trade named after Mykhailo Tugan-Baranovsky, Ukraine
The benenefits of
offshore business in modern world
Offshore business is developing
rapidly throughout the world. Investors from all over the world are interested
in offshore business to avail a lot of benefits which are missing in case of
onshore business and also with an intention to prevent taxes and other charges
imposed by local government [1].
The aim of this paper is to outline
the basic benefits of offshore business.
The off shoring of business
processes to low-cost countries, having grown substantially over recent years,
has become an increasingly important part of the senior management agenda at
most Fortune 1000 companies. The trend has been led by institutions in the UK
and US, and is far more developed in some industries [2].
The
phrase “going offshore” refers to the process of creating a business or asset
protection structure in one or more of a specific group of the specialty
“offshore jurisdictions.” [3].
The motivations for individuals and
corporations to utilise offshore planning and offshore companies include the
desire to: reduce
tax; protect assets; manage risk; enhance assets; maintain
privacy; avoid bureaucracy;
reduce costs.
Going Offshore, more
broadly, the reasons for going offshore and utilising offshore companies for
tax planning and offshore business include:
Free remittance of profits and capital
Access to top-rated debt history jurisdictions
Access to tax treaties
Security of property rights
Accessing low cost areas
Banking privacy
Availability of offshore experts
Access to foreign insurance and reinsurance
Customs and duty exemptions
Exchange convertibility
Government cooperation
Fair treatment
Territorial taxation on foreign income
Fewer restrictions
Sanctity of contracts
Foreign investment inducements
Tested legal systems
Higher yields and returns
The availability of sophisticated banking facilities
Reduced taxation
The search for political stability [4].
To summarize the reasons why you should
consider going offshore, these are the main benefits of it:
·
Asset Protection
·
Reducing Tax Liability
·
Confidentiality
·
Estate Planning
·
E-Commerce [5].
So
today offshore business is widely spread all over the world. Offshore business
has many advantages which makes it very attractive to businessmen in different
countries.
References:
http://www.letsgooffshore.com/offshore-outsourcing/offshore-business-in-india.html
http://www.offshore-business-management.com/offshore/successful-offshore-business.html
http://www.offshore-business-management.com/offshore/going-offshorebasics.html