Oxffshore Migration Approach
Therefore, international businessmen have to use offshore migration method for the aims that:
1) avoiding local market sharp competitiveness
2) increase market shares in global way
3) raise potential business opportunities
4) importantly, minimize the tax level both local and global ways
5) simplify incorporation procedure and with lower setup fee
Offshore migration approach is the way that it aims at achieving the above using overseas company and overseas bank account for overseas markets.
Offshore migration approach is a general name that a businessmen use an overseas company to engage businesses overseas. It does brings a lot of benefits like simple formation procedure, no initial capital requirements, lower setup fee, enjoyment of privacy, etc.
However, it does incur some difficulties like it is hard to borrow money, and difficult to register special type of businesses like insurance business.
The most importantly, for most investors, it is hard for them to proof the sources of profits which they will feel frustrated one day in the future for their successful businesses. The reasons are that: Firstly, overseas company may have no local reporting requirements so there has no income proof from overseas governments. Secondly, overseas bank account will be opened for overseas company. It produces the result that the overseas bank account will have a lot of money through unknown business transactions (as no evidence by reporting the income statement to the local tax authority). So there is a risk that the bank from local government will force to close the bank account or even seize money without notice in some days. This case does has occurred for a lot of investors. So how to solve it. Please continue reading below.