What is an offshore zone

In international economic relations, there is the concept of "special economic zones", which are separate territories in the state or country as a whole, which at the legislative level is enshrined by a special legal status, allowing to provide preferential economic conditions for various clauses. One of the species of special economic zones is an offshore zone.

An offshore zone is a territorial space limited by a whole state or part of which there are preferential regulations for registration of organizations, issuing licenses for various activities, as well as taxation for non-resident organizations. Such organizations are called offshore. In addition to privileges, a number of restrictions are also applied to offshores, for example, a ban on entrepreneurial activity in the offshore zone.

To take advantage of the benefits of offshore zones can be both legal and individuals, however, for small enterprises, it is an offshore - expensive pleasure. It is worth remembering that each offshore zone works under general principles, but has a number of differences related to the internal legislation of each state. Large companies, registering in other states, have great benefits, for example:

simplified registration process, sometimes there is no need to provide data on the company's founders;
low rates or their complete lack of income tax on profit and income tax;
reduced tariffs for registration and annual re-registration of the company;
lack of state control in foreign exchange operations;
guarantees of confidentiality of data on the activities of offshore;
the use of cheaper workforce;
lack of customs duties for imported equipment, materials necessary for the implementation of activities.

Offshore zones attract companies through the political and economic stability of the state. Many countries have already acquired the status of offshore zones, and even more wishes to get it, since offshore zones make a lot of benefits to their countries:

budget replenishment due to obligatory contributions of offshore, as well as property rental fees, communications, transport, electricity, etc.;
attraction of investors for the development of the state;
creating additional jobs for the population.

There are many points of view on the meaning of offshore zones: on the one hand, the offshore zone allows for international trade, and reduced tax rates or their absence provide optimization of financial flows, and also improve risk management, on the other - non-disclosure and confidentiality policy, inherent in offshore zones , promote the development of illegal activities, for example, money laundering. To combat illegal actions of the state, intensify internal legislation in order to avoid a conflict situation.

To take advantage of offshore zones, it is not necessary to register your own company, you can purchase an existing one. It is important to pay great attention to the study of the internal legislation of the state, which is an offshore zone.