Offshore company and offshore zones - what is it?

The offshore company, have the special organizational-legal status providing the minimal rates of tax payments. If to consider a situation from the legal point of view the offshore company has no basic differences from other enterprises. It can conclude deals the same as also other legal entities.

The offshore companies represent a way of business dealing by means of which use of more favourable procedure of the taxation is possible.

Key features of the offshore company are connected by that it has the non-resident status: in order to prevent payment of taxes on seat of registration, the offshore company function outside of area of jurisdiction where they have been registered.

For conducting activity of offshore firm formal attributes of the company – directors, owners (for the majority of offshore jurisdictions it is necessary at least two directors), the complete set of registration and constituent documents, as well as the bank account are required.

Territories or the countries which register the companies with a preferential mode of the taxation are considered as offshore zones. As a rule, these benefits consist that at compliance with the certain conditions is not required to pay taxes. Thus data about the company are under jurisdiction of the state.

Except for foreign offshores, there are internal offshore zones which are located in some regions of Russia (Kalmykia, Altai, Smolensk, etc.). The principle of their use is based on tax concessions regarding local taxes. But use of the offshore company which are registered in the given regions, is complicated in connection with constant variations in the legislation of the Russian Federation.