Compared with general limited companies, offshore companies are mainly different in taxation. Unlike the usual practice of collecting taxes according to turnover or profits, the offshore jurisdiction government only collects annual management fees from offshore companies, and other than that, it does not collect any taxes. (As long as the management fee is managed by the tax preference in the international tax law) Except for the tax preference, almost all offshore jurisdictions expressly stipulate the company's shareholder information, shareholding ratio and income status. Enjoy the right to confidentiality. If shareholders don't want to, they can not disclose it to the public. Another advantage is that almost all major international banks recognize such companies, such as Chase Bank in the United States, HSBC Bank in Hong Kong, Development Bank in Singapore and Credit Suisse Oriental in France. "Offshore" companies can open accounts in banks, which is very convenient in financial operation.
Generally, such "offshore" regions and countries have good trade relations with developed countries in the world. Therefore, overseas offshore companies are financial instruments frequently used by many large multinational companies and high-asset individuals (HNWIs).