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Why companies decide to operate in offshore zones?

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More and more companies decide to do that in today’s market

When a company minimizes the taxation on its profits, this automatically means that they are significantly increased.

The main factors why companies choose to operate in offshore zones

In our opinion, this would be the very high taxation on profits and dividends. Offshore zones are well-known as paradise for companies with huge profits, since they are required to pay very low percentage of taxes. Why would a company pay 10, 15 or more percent of taxes when it can pay 1-3. Another reason would be that managing a company in offshore zones is easier because these zones do not have strict regulations and there is more freedom on operational level.

The process which involves company registration, getting a business bank account and starting of operation is very easy and even available on-line, without the need of an office. It sounds really good, isn’t it?

There are companies with a main office which is located in an offshore zone but they have also branches in other countries where they pay taxes and have employees. This is a good practice if they are building a prestigious business.

Do you need to be scared of companies that operate in offshore zones?

In general, there is no problem if everything goes ok. A good practice when you are choosing a broker is to check its contact details and the channels to reach it. After that you should research if there are scam reports on the Internet which are talking about the broker. Your last step would be to look for traders’ opinions and reviews discussing the broker that you are interested in.

On the Internet there are many very well-known brands which are trusted and work in the best possible way. Our mission is to collect such brands and present them to our readers. That's the reason why we have a button at each broker’s overview called” report a scam”.

The community forum that we are running is also a place where you can ask your questions or share your experiences. The bad news is that good things are not easy to keep. We had many problems with spammers that attacked our small but strong community and that is the why now you can become a member upon invitation or request to use by e-mail.

Finally, the offshore type companies are popular on the binary market but it's not a guarantee that the companies do not work as they need to do. So just keep in mind how everything works.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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