CURRENT STATUS OF OFFSHORE BUSINESS DEVELOPMENT IN THE WORLD
DOI:
https://doi.org/10.29038/2524-2679-2020-01-21-40Keywords:
offshore, offshore business, offshore jurisdiction, economic security of the country, process of de-offshore economyAbstract
The creation of favorable monetary, financial and fiscal regimes for entrepreneurs, a high level of legal guarantees for banking and commercial secrecy, and loyal government regulation are the features of offshore business. The main advantages of offshore companies are identified in the paper, namely: simple registration; minimum commission; flexible management and minimum reporting requirements, minimum number of directors and shareholders; financial statements, information on accounts and annual income is either completely unnecessary or is minimal; lack of currency control; favorable local corporate legislation, favorable legal framework to encourage and stimulate the offshore industry development; high privacy and so on. One of the global trends of the offshore jurisdiction using by TNCs is considered. It has been found, that the total amount of funds in offshore jurisdictions is significant. And all these funds are not fully taxed. TNC‟s tax will have been paid if the funds had been brought to the countries where their parent companies are resident. But the opportunity to establish branches in offshore harbors determines, firstly, the economic opportunities to the countries where the TNCs are registered, and secondly, through accelerated capital accumulation, it gives these TNCs not only market, economic, but also a political power, and therefore, they are becoming a major players on the world arena. The world‟s largest financial centers are investigated by index GCFI in 2018. It is concluded, that New York remains in first place by index, just 7 points ahead of London. Hong Kong is in the third place, while Singapore is in the fourth one. Shanghai, Tokyo, Toronto, Zurich, Beijing and Frankfurt remain in the top ten. It is found that, nowadays, the global process of offshoring in economy absorbed almost all countries. According to the OECD datas, the world loses about $ 20 trillion annually through offshore, which is 10% of the country‟s economy. In recent years, the global community has been very concerned about the offshore companies activity. New approaches to combat offshore are developed each year. Therefore, it is fair to say that the world has begun a global process of de-offshore economy.
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