"OFFSHORE": A DEFINTION

As terms the words 'offshore business' and 'offshore company' have no precise legal, tax or general business meaning, as the word 'offshore' often means nothing more than anywhere other than the place of physical location of the person using the word (i.e. overseas). We use the words offshore business and offshore company as terms of definition in connection with matters such as the structuring of international business and family wealth management or tax planning. Read about the many reasons and benefits attached to utilising international corporate or fiduciary trust structures.
Typically, our clients utilise the following types of offshore companies to structure international business and for tax planning:
Back to top

LOW OR ZERO TAX OFFSHORE COMPANIES IN TAX HAVEN ISLAND JURISDICTIONS

Very low or zero tax offshore companies refer to, for example, the differing types of offshore companies that can be formed in offshore company formation centres such as the BVI or British Virgin Islands, Belize or the Seychelles or Brunei. Companies incorporated in jurisdictions which offer both offshore companies and onshore companies and which may benefit from favourable tax regulation and / or special offshore company regimes. For example:
Mauritius has two types of companies that are used for offshore business and international tax planning. The Mauritius GBCII Offshore Company pays zero tax and is effectively a tax haven company, similar in many respects to a BVI Company, whilst the Mauritius GBCI Company is tax resident and typically utilised for double tax treaty and international tax planning.
Hong Kong, although not typically regarded as a tax haven, has a favourable tax regime which effectively means that correctly structured, managed and administered Hong Kong companies can be utilised for undertaking offshore business and international business without paying tax in Hong Kong provided that any profits arising are not made in Hong Kong. This type of tax regulation is known as "territorial taxation".
Back to top

THE LLC OR LIMITED LIABILITY TYPE OF COMPANY

The LLC or Limited Liability Company and the LLP or Limited Liability Partnership type of company, are a particular class of company used for offshore business, international business and tax planning because they have the advantage of limited liability but the flow-through characteristics of a partnership for tax purposes. By this, we mean that profits are divided amongst the members, in proportion to their respective holdings, and are taxed in their hands. In some circumstances, if all the members or partners are non-tax resident in the domicile of the LLC or LLP company and no business is undertaken in that country, neither the LLC or LLP company nor the members or partners will be subject to tax in the company's country of establishment. Such companies are said to be "fiscally transparent" and examples include US LLCs, the Isle of Man LLC and the UK LLP.
Back to top

COMPANIES INCOPORATED IN TAX ADVANTAGEOUS "ONSHORE" JURISDICTIONS

Companies incorporated in the many onshore countries which have tax regimes that are by statute tax advantageous for specific international purposes.
The world of offshore is more complex than the black-and-white tax world inhabited by the media; offshore business consists not only of tax havens but also of onshore high tax countries competing fiercely to attract international companies and individuals with all manner of tax planning regulations and opportunities. These tax advantageous regulations are used for a wide variety of tax planning business, such as:

• Double tax treaty planning relating to dividends, interest and royalty payment
• The establishment of holding, international headquarter treasury and finance operations
• Specialist business, for example, leasing
• Personal and family wealth management and tax planning

In fact, almost all countries offer tax regulations of one kind or another to encourage inward investment.
International tax advisers have long been aware of the opportunities which exist for improving overall tax efficiency by using the special low tax regimes offered by high tax countries seeking to encourage international business. However, successful implementation of such structures is dependent on a wide variety of issues, often relating to matters such as anti-avoidance provisions, double tax avoidance, controlled foreign company and management and control tests and provisions, transfer pricing, thin capitalisation, participation exemptions, capital gains tax and a myriad of other ever-changing tax regulation. More recently, the weapons contained in the armoury of the tax collectors have been supplemented by exchange of information treaties and provisions.
So today the offshore world includes the expert implementation of specific tax advantageous structures domiciled in high tax onshore countries as diverse as the UK, Portugal, Singapore, Greece, Belgium, Austria, Spain, Switzerland, Luxembourg and the Netherlands.

CHINA & HONG KONG BUSINESS SERVICES

Use Our Expertise to Help Grow Your Business

Traditional outsourcing firms tend to have specialist knowledge only of the country in which they are located.
OCRA's world-wide offices with a truly international team give you a major competitve edge in your trading business - across borders across the world.
To discuss how we can help you, please contact our trade services consultant:

OCRA (Hong Kong) Limited

3908 Two Exchange Square
8 Connaught Place, Central,
Hong Kong
Telephone: +852 2522 0172
Facsimile: +852 2522 4720
Email: trade@ocra.com.hk

If you answer 'yes' to any of these questions, then contact us to discuss how our innovative and reliable solutions can help:

Are you importing from or exporting to Asia?
Do you want a local presence in Asia without the high set-up and maintenance costs?
Do you have large retail chains as clients?
Do your clients want to buy direct from an Asian supplier, or ship direct from a port in Asia?

Why use OCRA's trade services?

OCRA Worldwide has extensive operational knowledge of trade and protocols in Asia having maintained offices in Hong Kong since 1990 and in China since 1997. We provide companies with high-quality integrated trade services, including invoicing, banking and processing of letters of credit, liaison with inspection companies and freight forwarders, and financial management and accounting.
Our many years of experience and hands-on approach have led us to develop streamlined processes for trade billings and invoicing, import/export documentation, preparation of applications for letters of credit, and for arranging shipping, insurance and customs declarations for importers and exporters.

Who are our trade clients?

Startup Trading Businesses
If you are an entrepreneur, you can create an efficient low-risk trading business by outsourcing your back office - while still maintaining full control of your business, rather than entrusting this to a shipping agent or third party. First we help you set up your company and trading operation, and then our trade services division will follow up with full support when and where it is needed - while keeping your costs low and predictable.
Existing Importer/Manufacturer
For an existing importer/manufacturer of products for home markets (through your retailers or distributors or perhaps large retail chains in North America, Europe or the Pacific Rim), OCRA can implement a structure for your clients to purchase direct from Asia through your company in Hong Kong. We act on behalf your company with your goals and needs in mind, providing all the resources for shipping, trade transactions, and banking and administration, leaving you with much lower overheads and greater flexibility.
Existing Foreign Business
For established businesses outside Asia that need to source suppliers, as well as business and government contacts, OCRA can help you to find the contacts you need. In addition, we can assist with creating and facilitating your market-entry strategy in Asia.

Trading with China

With a population of over 1.3 billion, China is the world~s biggest potential market - and clearly the 'factory of the world'. Although China is a full member of the WTO, there are still some barriers to foreigners (both real and perceived) in doing business there - not least of which are culture and language, as well as time-zone differences, between your home country and global target markets.
That's where we can help. OCRA trade services, provide new and existing businesses with full support and guidance in these often daunting and complex working environments.

How Can We Help Your Import/Export Business?

• Extend your business contacts and relationships.
• Create and maintain an efficient and cost-effective trading operation here in Asia.
• Outsource your back-office functions allowing you to focus on growing your business.
• Give you control and flexibility of your Asian operation without the risk and high set-up costs.
• Provide timely and accurate information on your business for banking, accounting, financial reporting, shipping.

Why use Hong Kong as your trade base in Asia?

Gateway to China
Hong Kong's world class financial, marketing and technical expertise and sophisticated infrastructure together with the Mainland's rapidly developing manufacturing and services base have created an exceptional environment for business. Thousands of international companies involved in China trade have chosen to establish their regional offices in Hong Kong. Hong Kong is currently the largest foreign investor in Mainland China, accounting for about 46% of China’s foreign direct investment.
The Closer Economic Partnership Arrangement (CEPA)
Signed in 2003 by the Central People’s Government and the Government of the Hong Kong Special Administrative Region, CEPA provides preferential access to the Mainland market for Hong Kong companies and reduced tariffs for certain individuals and enterprises in Hong Kong, whether locally or foreign-owned.
Low Taxes
Hong Kong’s tax regime is simple and predictable, with taxes among the lowest in the world. Profits tax payable by local and foreign companies is equally low at 17.5 percent. Many foreign companies using Hong Kong as their regional office can actually be structured to pay zero tax in Hong Kong if their income is earned outside Hong Kong.
Unrivalled Location
Simply put, more than half of the world’s population is within four hours flying time from Hong Kong.
World Class Infrastructure
In Hong Kong, everything works. From the state of the art electricity grid to potable tap water to an amazing transportation system and mobile phones that connect even in tunnels and in the subway.
Clean Government
A clean government and its anti-corruption agency ensure that companies are free to pursue their business interests on a level playing field without concern for corruption.
World’s Freest Economy (year after year)
The cornerstone of the economy rests on free enterprise, the free flow of information, free trade and free markets open to all. There are no barriers to trade (no tariffs, no quotas, no exceptions), no restrictions on investments inward or outward, no foreign exchange controls, and no nationality restrictions on corporate ownership.
Entrepreneurs’ Paradise
Entrepreneurs’ Paradise Hong Kong was created by entrepreneurs and trading companies. It is the world’s freest economy, and thrives on business – 24 hours a day. It offers a huge network of business services (from warehousing to legal and tax advice) all designed and fine-tuned to assist trading companies and foreign businesses.

CHINA & HONG KONG BUSINESS SERVICES & MARKET ENTRY SOLUTIONS

OCRA Worldwide's Global Corporate Services provide your business with all the support you need to streamline your operations and work more efficiently.
Virtual Office Services China Business Services UK Property Investment Accounting Trade Services

China Business Services Overview

OCRA Worldwide offers cost-effective China Business Services and China market entry solutions and expertise to companies and entrepreneurs wishing to take advantage of the attractive quality-to-cost ratio of Chinese manufacturing operations or seeking to access China's growing market for imported goods and services.
The transformation of China's centrally planned economy into a market-oriented economy has created a business and market environment in China where business regulations are subject to change, business goal posts are constantly being moved and bureaucracy is overbearing. Thus, doing business in China and China market entry are often challenging experiences and coming to terms with Chinese legislation, regulation, taxation and, most importantly, the Chinese way of doing business can be both expensive and time-consuming.
OCRA Worldwide's strength lies in its understanding of and ability to deal with these China business and market entry challenges. Our extensive network of relationships in China, developed over fifteen years of doing business in China, ensures that our clients receive full support in their business activities, be they in China trade, services or investment.
Our connections in China are excellent. Our local presence in three cities in China, the Hong Kong SAR and our international outlook make us sensitive to cultural and business differences and enable us to bridge the cultural and business gaps that can so easily hinder business success in China and facilitate our ability to deliver both China business services and China market entry solutions.

Hong Kong and China Business Services

We offer a portfolio of China business services and China market entry solutions covering every aspect of these processes. Our expertise encompasses a wide-portfolio of services and advice relating to China market entry, typically leading to the establishment of a:

• A Hong Kong or a low or zero tax company, possibly "offshore".
• A Representative Office in China
• A Wholly Foreign-Owned Enterprise ("WFOE") in China
• A Joint Venture in China

Additionally, OCRA Worldwide offers:

• Bespoke China Business Services relating to the identification of suitable tax advisers, lawyers, local partners, premises, factories, management, staff and expatriate housing.
• Professional corporate administration services. We have the capacity to deliver a turn-key back office function for an operation in Hong Kong or China. These business services encompasses communication services, accounting and handling a broad range of commercial work including documentary credit services and managing an import or export operation.

Whilst our China Business Services and China market entry solutions are broad, many of our clients utilise our services selectively, and this approach is welcomed.
Our clients are diverse. They include major US Corporations, international companies and both owner managed business and entrepreneurs. We have particular expertise in assisting Clients looking to set up business in China relating to hi-tech industries, such as IT and telecommunications.