Why isn't everyone offshore?

Question

Freelance

If you can pay $500 a month to register a company in an offshore like Panama and not pay any taxes to anyone, not keep any superfluous reports and not worry about financial matters at all, then why aren't all companies registered offshore? What's the downside? What makes people register a company in their home state with much higher taxation and a lot of problems to boot?

Answer 1

Because the money in offshore accounts was confiscated a million times under far-fetched reasons.
+ lack of any judicial protection and deposit insurance.

Answer 2

There is such a wonderful "legislation" in the Russian Federation, at least read about "currency control".
[ www.vedomosti.ru/glossary/%D0%92%D0%B0%D0%BB%D1%8E... ]
[ daily.rbc.ru/opinions/finances/27/01/2015/54c79949... ]

Answer 3

stuffing. not from the USA?)

Answer 4

Author, what high taxation and problems are we talking about? An individual entrepreneur is registered in a few hours with a total cost of 2-3k rubles, then reports are submitted once a quarter, it is possible via the Internet, and a tax of 6% on turnover or a little more on profit is paid. ALL. With an LLC, everything is a little more complicated, but also not critical, and it is necessary for large companies with a division of shares by the founders, in such a situation it is not a problem to hire an accountant to manage everything. Most people don't need these offshores, only for specific purposes and large movements of dubious funds, since there are plenty of problems there.

Answer 5

It depends what the company is for.
offshore is not a fetish, but a tool. each tool must be used for its intended purpose. Local companies have their purpose, offshore companies have their own. And most often offshores are used not for tax evasion, by the way ...
For example, if you work with the budget in Russia, offshore is useless.
If you want to open a store in - I don't know - America, for example - it also makes no sense.
If the business is online and digital - why not.

Answer 6

Patriotism? Or ignorance of such an opportunity / fear of the consequences that may overtake an offshore company.

Answer 7

Because if the government of another banana republic decides to suddenly change or they fly there with democracy, then you can say goodbye to money, you will not receive any protection. With large purchases, you will once again have to attract the attention of financial monitoring and other various associated hemorrhoids, not everyone needs this.

Answer 8

The content of the offshore goes to several thousand dollars, the accountant is the director and so on.
Well, taxes there are also just less.
Well, the situation in Cyprus when they divided the bills in a crisis is also fun.