China Company Formation

Features of China Offshore Company

- Tax avoidance: Offshore corporations can be utilized for tax planning purposes. A significant amount of tax can be accomplished by accurately arranging finances. Also using offshore companies for exporting products in anti-dumping regions can be a way to avoid heavy tax.

- Limited risk: Offshore companies provide a layer of limited liability, removing risk from its valuable parent company.

- Easy management: There is no requirement of holding annual shareholder meetings nor is the requirement of selecting a place for such meetings. In most cases, the secretary of the company is appointed for preparing any required documents for use within the company. The corporate law of offshore jurisdictions is often very flexible.

- Confidentiality: There is no provision of checking the directors or the shareholders status publicly. This is limited to only the trust management companies and the law prohibits them from leaking important information to any outside parties.

- Save bureaucratic hassles: The sale of the investment in China can be made by transferring the offshore entity, rather than the stake in the Chinese entity, which saves bureaucratic hassles in China.

- Zero restrictions: There is no restriction based on the nationality, assets, personal information or background of the shareholders.

- Single shareholder: Only a single shareholder is required to incorporate and there is the requirement of at-least one director.