Reboot 2003

Chapter 44 044: British Virgin Islands

The agency company is easy to talk about. After all, although China’s Internet is not yet developed, and venture capital investment is not done by itself, the mainland-oriented services such as capital flight are well developed, and the registration of offshore companies is already a mature business.

Using an intermediary... Chen Qin can register three companies overseas.

Two BVI companies and one Xiangjiang company.

The battle is a bit big, but it is in the capitalist world where the air is sweet and sweet. Registering a company does not require paid-in capital. In fact, the price is very low. Registering three companies for [-] yuan, most of the money will actually fall into the pockets of the intermediary...

Moreover, Chen Qin did not register so many offshore companies on a whim.

Xiangjiang Company is the shell used to hold shares in Kuaikan Media. This is because Xiangjiang is an international financial center and also a part of the Chinese territory. It is a reasonable choice to use Xiangjiang Company to invest in the territory.

However, it is not enough if there is only one Xiangjiang company.

After all, although Xiangjiang is an international financial center, it is not a place outside the law. Companies registered in Xiangjiang also expose part of the information and register equity, and there is no way to safely hide Chen Qin, an eight-year-old child, behind the scenes.

So there are the latter two BVI companies - BVI is the abbreviation of "British Virgin Islands", which may be a bit unfamiliar to most people, but it is an international tax haven. The same tax haven has the famous Bermuda and Cayman, and these two are much more famous.

Whether it is BVI, Cayman, or Bermuda, they are not important in themselves.Although many companies are registered in Cayman, they probably don't have anyone there, and they may not even go there in person. The function provided by these 'tax havens' is only registration.

As for the purpose of doing this... the apparent reason is tax avoidance.

As a result, whenever a listed company is registered in Cayman, the audience will call out traitors when they see it, and they have gone to a crooked country for tax evasion...

This is actually true, but these tax havens do have other uses, and those big companies have reasons to register there.

The most important function is to go public. Tianchao cannot directly go to Nasdaq to cut leeks, so it has to register and land on the Cayman curve.

In addition, there are some problems left over from history...

In the early days, Internet companies basically had to seek investment from foreign companies. After all, due to the special industry risks of Internet companies, eight or nine of the ten companies that invested in the Internet companies would die.

Domestic individual investors generally do not understand the Internet at this time, so they can only find foreign venture capital.

For the government, to let foreign investors take risks, of course, they must respect the final investment results and ensure the exit mechanism, so as to maintain the credibility of the market. Although they will indeed cooperate with cheating when it is time to cheat, but in the Internet industry, there is no big problem in itself with foreign entities holding shares...

As for the issue of tax avoidance, this still needs to be viewed dialectically.

Just like in the entertainment industry later, he registered an offshore company, filmed by himself, entered into a Yin-Yang contract with the film studio, and transferred the money to the account of the offshore company. Of course, he was looking for death.

Internet companies use tax havens to avoid taxes, the most important one is capital gains tax.

That is to say, if the taxation of equity transactions occurs overseas, it can bypass supervision and not pay taxes.

However, for entity companies, the most important income will always be operating income.

Thanks to the relatively powerful economic policies in China, entrepreneurs cannot imitate their counterparts across the ocean and directly move their business entities to Ireland and Singapore, using high-end operations such as the "American-Dutch Triangle Move", "Double-Deck Irish Cayman Burger", and "Three-Deck Dutch Sandwich".

Judging from the status quo, domestic companies, whether they are operating entities, jobs, or bank accounts, are all in the country. At least these operating entities have not fallen into the hands of evil crooked people.

And the government's supervision is also working in this direction. On the one hand, it restricts foreign exchange, and on the other hand, it pays close attention to business supervision. Generally speaking, it is actually much more practical than other countries.

Of course, these things have nothing to do with Chen Qin for the time being.

He is just an ordinary elementary school student who just wants to register a BVI company with the minimum share capital to get his shares in Kuaikan Media.

The reason why BVI was chosen is of course not just for a good meaning - if it is translated, the name of the country of BVI is probably called "British Virgin Islands". Chen Qin can probably just hold this company until adulthood, and then jump out of the platform by himself...

For Chen Qin, he doesn’t need to launder money out of the country, and he doesn’t have an operating entity. The biggest advantage of a BVI company for him is that it’s kept secret——

Different tax havens serve different purposes.Among the common tax havens, Cayman can be listed in Hong Kong in the United States, Luxembourg is convenient for going to Europe and the United States in the opposite direction, and Bermuda is the tax evasion place of multinational companies in the previous version.

Marshall is the host country of the United States, the air is sweeter, Malaysia is the route of ASEAN countries, Seychelles is more flexible in equity operations, and Singapore is closer to the Chinese-speaking circle...

Among these registration places, the registration and maintenance procedures of BVI companies are the loosest. It does not disclose company information at all, and there is no such thing as auditing and auditing. Basically, it can be registered as long as the annual fee is paid, so it can realize the equity operation that most people can think of.

For example, Chen Qin has now registered three companies. As the last link, it is a trust company...In other places, a trust is a kind of asset management organization with three positions: investor, manager and beneficiary.

So Chen Qin first registered the "San Diego Trust", the registrant was grandmother Wang Yinglan, and the beneficiary was Chen Qin himself.

Then register a second 'San Diego Holding Company', which is 100% owned by the San Diego Trust and acts as the administrator of the San Diego Trust as an institution.

These two companies are both registered in the British Virgin Islands, and now Chen Qin is registering 'Xiangjiang Santiago Co., Ltd.', which is registered in Xiangjiang, and is jointly held by two BVI companies to form a limited company.

Of course, Xiangjiang is more formal than BVI after all... Registering a company requires a legal person is the rule of the mainland. In addition to legal person, Xiangjiang also has a concept of "incorporation", that is, a company can be the legal person of another company.

In this way, the three companies can be directly connected together to form an impeccable equity chain. On the one hand, it is concealed enough, and on the other hand, it will not cause extra problems in this most critical place.

Next, just use 'Xiangjiang Santiago' to directly participate in Kuaikan Media, and Chen Qin can naturally become a shareholder of Kuaikan Media in his own name...

While no other fake or relative identities are directly mixed in, it might be a bit unsafe in practice.

But apart from a BVI company, who can know if there is an eight-year-old elementary school student on the other side of the equity chain?

(End of this chapter)