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Advantages and Disadvantages of Conducting Business Offshore. - Essay Example
Advantages and Disadvantages of Conducting Business Offshore.
Offshore company relates to the incorporation of a company overseas, and it is utilized in a way that investors are able to avoid tax laws imposed to business in their home countries…
Therefore, the tax reasons for offshore business are the principal factors in deciding to start the business offshore, though there are other advantages and disadvantage. Making a decision of conducting business offshore entails the motives of establishing a business for a given purpose in a country having different corporate and commercial laws. In fact, there are alternatives allowing solutions like organization of relationships, which are created between the stakeholders of the business contrary to the commercial laws. Consequently, this is a significant way of reducing the level of administrative duties regarding financial statements and tax return, which are not submitted or entries made in the commercial register. Nevertheless, the main objective of the paper is to explore the advantages and disadvantages of conducting business offshore (Gitman and McDaniel 44). Advantages One of the advantages of conducting business offshore relates to the investor or owner protection due to anonymity that is considered a vital factor of investing. Therefore, there is an advantage associated with anonymity in the beginning phase of a business regarding the utilization of anonymous business with unknown owners. ...