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Offshore companies give the opportunity to run a business remotely

When an enterprise is expanding successfully and new prospective in international market arises, businessmen typically wish to consolidate their success and set new goals. It is time for detailed familiarization with possible directions of company growth. It is wrong to think that business in an offshore jurisdiction is just competent tax planning. Registration of a company abroad provides plenty of opportunities, but each country has its own peculiarity. For instance, transportation costs may be saved on by opening a branch office in a state where raw material is obtained. Or production may be organized in a region where workforce is much cheaper. More often than not offshore countries welcome new enterprises that will provide their citizens with jobs and increase capital turnover in the country.

Many Russian entrepreneurs have already been using offshore jurisdictions for many years to register new companies as a component of a world-class business. Network of offshore companies is being formed. There is room for both large market participants and small firms. The main thing is to choose the occupation from a variety of options. An offshore company may become a participant of international trade or investments. It is reasonable to use such an enterprise to open an account with a bank, engage in licensing, franchising or insurance. An offshore company may work in a financial market or help deal with property remotely. A number of large western companies that actively open representative offices abroad are worth paying attention to, for instance, General Motors, PepsiCo and other well-known producers.

As noted above, there are plenty of excuses to register a company abroad. In order to do it one should get familiarized with the legal framework of the state chosen. However, one should not be afraid of the procedure of company registration in an offshore jurisdiction. The best option is to turn to professionals who will draw up the right business plan according to the wishes of the company owner. Moreover, the specialists will teach strategies of remote management emphasizing the recommended option in a particular case.

Entrance to the world`s business market is not only possible by registration of a new offshore company but also by merger with an existing enterprise. Purchase of an appropriate company is not excluded, and it is often called takeover. When choosing this option one should choose a state whose legislation will enable plans concerning a new company to be implemented.

It is worth knowing that registration of a company in another region means timely payment of fees and charges every year. Failure to fulfil such obligations leads to company`s removal from the register. Reinstatement is connected with significant financial and time losses. Remote management of an enterprise will make it possible to avoid a number of sad consequences. There are cases where business owners for several reasons decided to stop carrying out international activities and running a foreign firm. But the owner of the enterprise continues to be responsible for its affairs irrespective of the location. In such a situation one can be deprived of property and assets which will be withdrawn when the debts must be paid off. Moreover, the head of the enterprise will be demanded to pay the debts. If the business is not developing successfully when instead of expected profit debts are growing, liquidation of the company according to the rules is recommended. However, a better option would be a successful expansion of business according to scheme.

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