General Knowledge About Offshore Companies

Why are the offshore jurisdictions interested to register tax-free companies?

Most of the tax haven countries have small territories and small populations. So even relatively minor amounts of money can and does make a difference. The direct Government duties paid at IBC registration and its annual renewal fees are only the tip of the iceberg in respect of the overall impact of a successful offshore formations industry in a particular country. A $100 Government licence fee, multiplied by tens of thousands of offshore companies, provides millions of budget revenue without ever burdening the country`s infrastructure. The non-government revenue is even larger. It`s made up of the professional fees paid by all those offshore companies to local Registered Agents, company managers and administrators. In addition, there`s money settling down and turning over in offshore banks, insurance companies and investment funds. All in all, a successful offshore financial sector provides jobs, career opportunities and income for a whole lot of people. The offshore services sector creates demand for quality telecommunications, office space, computer equipment and software, office furniture and business supplies. Ultimately, all that offshore revenue filters down into all sectors of the national economy. The result is notable increase in overall prosperity and social stability of the country. That, in turn, strengthens the independence of that country - in particular, it`s ability to withstand pressures from foreign governments and international organizations.