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Yiwu enterprises are keen to open off-shore companies

Source: Yiwu sourcing agent    Author: Helan      Date: 2009-04-08

In recent years, in order to better carry out foreign exchange, to take part in international competition, many companies start Yiwu open Offshore company  in Hong Kong, Panama and other regions. However, in the face of mixed market intermediary offshore company registration, experts remind, enterprises should be fully taken into account in the registration of the company development needs, carefully select the place of registration of companies and intermediaries.

     Offshore company registered became hot

     A few days ago, a professional street, Yiwu automotive supplies, surnamed Su, told reporters the operation of households on an idea of his. He said that relatives in Europe, he intends to register a company in Europe, and then apply for a local auto parts in the product labeling. "So I can bypass the foreign buyers to reduce the cost of circulation in Europe in order to lower the prices of local shipping. At the same time, I can also register to make use of foreign brands, to more effectively develop the European market." Mr. Su said.

     "Mr. Su would like to register a company, in fact, to be called in the industry off-shore companies." Yiwu an offshore company registered in Hong Kong engaged in the business sector told the reporter that there are a lot of Yiwu enterprises set up overseas offshore company.

     It is understood that the so-called off-shore companies, off-shore law refers to the region in the establishment of limited liability companies or limited companies. The world famous offshore jurisdictions including Hong Kong, British Virgin Islands, Niue Island, Bahamas, Seychelles Islands, Republic of Panama, Republic of Mauritius.

     "At present, Yiwu many businesses or individuals (including individuals doing foreign trade, foreign trade companies, some of the import-export companies, etc.) in offshore jurisdictions to registered companies are very enthusiastic." One of the industry told reporters that many companies In addition to local agencies to find registered offshore companies, but also through Hangzhou, Ningbo, Shanghai and other relevant agencies, in Hong Kong, Panama and other offshore companies registered. Yiwu Chouzhou in the forum, the Global Village Forum, China's foreign trade and other sites now, the reporter also found a lot of users published on Yiwu offshore company registered post.

     Press survey found that at the moment Yiwu enterprises through intermediary companies generally registered offshore companies, the cost is not high, is about more than 6300 yuan / family. According to some intermediary person in charge, the offshore jurisdictions in the company register, the local government only to the management of offshore companies charge annual fees, and will not impose any tax.

     Yiwu enterprises as a result of overseas companies set up off-shore is always a demand for a number of offshore jurisdictions have begun to contact the relevant bodies of Yiwu market. Such as Hong Kong Special Administrative Region last year, Invest Hong Kong had set up booths to the Fair, Yiwu entrepreneurs to promote Hong Kong's investment environment. Yiwu enterprises in order to attract more settled, when the Hong Kong Special Administrative Region Economic and Trade Office in Shanghai, Investment Promotion Manager of meditation peak as "investors, even if only a dollar, you can set up a company in Hong Kong" as the referral point.

     Why companies offshore companies keen

     Yiwu International Trade City, a nearby Hu, general manager of foreign trade companies, told reporters, after he spent 6,000 yuan Hangzhou agency through a register at a Hong Kong offshore company. He said the purpose of doing so, he is very simple, that is, in order to more easily collect dollars to foreign money.

     It is understood that Mr. Hu offshore registered company, on behalf of the new company registered in the domestic bank a "offshore accounts." "The U.S. national accounts have a certain foreign exchange controls, comparison, off-shore accounts more freely into and out of the U.S.." He also told reporters that the current Shanghai, Shanghai Pudong, Shenzhen Development, International Bank of Ningbo have opened " off-shore account "of the business.

     Of course, an off-shore U.S. dollar accounts into yuan, into individual accounts in China has some limits. Specific for, a personal account can only USD 50,000 settlement. Hu and relatives through the use of identity cards to apply for a number of domestic foreign exchange account, succeeded in solving the problem.

     Yiwu Long and Enterprise Management Consulting Co., Ltd. staff members also told reporters that the Yiwu enterprises, the role of offshore companies not only in foreign currency loans closed end so simple. As Mr. Su, the enterprise can be based on the capacity of offshore companies overseas brand, expand the market. In addition, for the advantages of an offshore company to avoid tariff barriers but also to make the cumbersome process of overseas investment has become a simple and legal, more easily, such as participation in overseas mergers and acquisitions.

     Negative aspects can not be ignored

     While many companies, the offshore company has a number of advantages. However, in recent years, the large number of offshore companies or have had some negative effects. According to one industry source, a number of products that clearly have a full set of production from the technical supervision of the factory, Yiwu, but in the product label marked "Hong Kong produced a certain company" message. In fact, the Hong Kong company is very likely that the company's money to spend several thousand dollars to set up an offshore company only.

     "To the territory of foreign investment and generally enjoy the local taxation, land acquisition policies and so on." The industry has also told reporters that, therefore, after a number of domestic enterprises still exist in law in the off-shore shell companies set up, and then return to domestic investment, so as to reduce the cost of the investment. Of course, in order to avoid this phenomenon, a few years ago, Jinhua City, has been introduced to regulate the relevant policies.

     The domestic economy more scholars Mei Xinyu, a survey in the report, the provision of services for the offshore company offshore financial center, the existence of 5 negative impact, namely: for the corrupt elements, bad businessmen misappropriation of state assets and public property ways; to promote further expansion of the scale of capital flight, and then on the RMB exchange rate arrangements and the operation of monetary policy to exert great pressure; investment potential controversy; enterprises inflated inflated assets and operating results of fraud; foreign shifted financial risks.

     Intermediary should be careful to choose

     At present, Yiwu want to register more and more off-shore company's business, but experts advise, business in the registration process should also be cautious.

     These experts said that Yiwu business agent for the registration of offshore companies are mostly overseas intermediary agencies to set up an agency or branch, law firms, registered investment banks. However, these agencies have their own advantages and disadvantages.

     They said that one of the overseas intermediary agencies in China to open a branch or intermediary agents to collect a relatively low cost, but registration of such institutions, small enterprises choice. Acting as some Hong Kong companies registered offshore companies, usually only to customers in Hong Kong recommended the establishment of offshore companies, and will only be on their side edge. In fact, for enterprises, should be based on the needs of their own choice of offshore jurisdictions.

     In addition, the law firm during the registration process will enable enterprises to reduce legal risk, but the higher the fees charged. And registration of investment banking services with a personalized, specific characteristics, but its main customer base is targeted at a certain strength and the development prospects of the individual owners.

     Yiwu Wang a law firm, a lawyer to remind the relevant enterprise, rather than the relative authority of the intermediary institutions, prior to the registration of offshore companies, enterprises should also be registered to a comprehensive understanding of the relevant tax laws, exchange control, financial policies, laws and so on, should not blind to the tax relief system for the selection of registration, but should be able to help select the best company in the register to register.



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