From the moment when commodity-money relations developed instead of in kind exchange, there were constantly both those who wanted to make a profit, and those who wanted to share this broth with them. The former were represented by merchants and merchants of various sizes, and on the other hand, the state or its ruling elite stood out.
Even in Ancient Greece, attempts were made to introduce a tax on import and export of products, as Athens did, which gave rise to the first offshore zones. These are nearby islands where you could import and export goods, as well as conduct trading operations without duty.
Taxes in the Ancient World
Attempts to conceal a part of revenues from the state or its rulers and to receive any benefits to reduce taxes have been known for a long time. In all countries of the ancient world there were one-time payments or, as they were called, victims. Citizens of the country introduced them during periods critical for the country, for example, during the war. Later, payments became regular and were directed to the development of the state.
The emergence of a tax system was caused by the formation of such institutions of power as the army, courts and officials at various levels. The collection of the victim in those days was more spontaneous, and the payment could be both part of the grown crop or produced goods, and personal services, for example, participation in a military campaign, service in the manor house and others.
There were areas where taxes were either minimal or not levied at all. These days they are called the term "offshore zones". For example, the island of Apollo, whose main port is Delos in 146 BC. e. was declared free, where overseas merchants could trade duty free. This was the first documented free zone in the world. Offshore companies gained the greatest development both from the legal and financial side in the 18-19 centuries.
The history of preferential tax territories
Offshore zones are entire states, or some part of them, where the law provides the opportunity to open companies with preferential tax policy.
The root cause of its occurrence was the demand by the French kings, who took loans from Swiss bankers, to keep secrecy about these facts. This was due to the fact that the royal people, being Catholics, did not want to publicize that they borrow money from Protestants.
Thus, the concept of the secrecy of loans and deposits arose, which led to the adoption of a law on banking secrecy in Geneva by the city council in 1713. According to it, bankers had to keep records of their customers and their financial transactions without the right to disclose this information to third parties.
It was Switzerland that created the first model of financial secrecy for foreign capital and was the European center for the exchange of money. Until 1934, the main concern of bankers in this country was to maintain confidentiality, which was guaranteed to customers on the basis of civil and labor laws.
Since 1934, new measures have been taken, the main of which are the protection of personal data of customers and the introduction of numbered accounts. Thus, Switzerland is the first offshore zone, which, after the abolition of limits on the purchase of foreign currency and the introduction of mutual convertibility of monetary units of all countries, began to provide banks with the opportunity to conduct monetary transactions in the markets of other countries. This allowed international firms and corporations to expand their activities, relying on loans that were not limited to national ties.
The laws adopted in this country make it possible to hide customer data even before the state. This rule was fixed and became the main one in offshore zones not only for individuals or legal entities, but also for their trusts, firms and foundations. To find out who is the founder of a company open in such a zone is almost impossible.
The development of offshore zones in the 20th century
Offshore economic zones have become one of the ways to attract foreign capital to countries with poorly developed economies. For example, in the mid-20th century, part of the colonies of Great Britain gained independence, and part, remaining part of the United Kingdom, was deprived of government subsidies to further support their economy. Therefore, laws were adopted in these countries to register foreign offshore firms.
An example of such a company is the Liberian fleet, which at that time was the largest. 
A poor African country, having created an offshore on its territory and giving numerous foreign courts the opportunity to register and fly under the Liberian flag, was able to raise and develop its economy.
To date, such international offshore zones have created Panama, Malta, China, Hong Kong and Singapore. Due to the fact that the paperwork is quick and simple, and the tax rate is minimized in these countries, they have the largest number of merchant ships in the world. Most of the ships belong to owners from other countries, but this does not prevent them from flying under the flag of the state where the offshore zone is registered.
Separation of financial responsibility
The countries where the separation of the company as a legal entity and its owner, the subject of physical activity, began to use special popularity among business representatives.
This allowed the manufacturer, in the event of declaring his company bankrupt, to preserve his property, and the payment of debts should have been made by the company as a legal entity. In most countries, in the event of the ruin of any production or company, banks claimed damages from the owner, describing his personal property. At the same time, a person became completely bankrupt.
In the UK, a law was passed according to which the company was considered the country of residence from which the business was run. At the same time, the company could be registered in another country, but since it did not produce anything there, and its owner was considered a non-resident, taxes at the place of registration were not paid.
The territories where such registration took place are the offshore zones of the country. The beginning of this process was laid by Britain on its colonial islands, but today not only small and economically underdeveloped countries, but also large states are adopting a similar policy.
Free economic zone
In order for an influx of foreign investment into the country to begin, it is enough to create favorable conditions for doing business in it and consolidate all this legislatively.
A free economic zone is a part of a country where preferential conditions for foreign capital apply in such matters:
- currency regime - support for the exchange rate in accordance with its global indicators;
- taxation must be minimal;
- customs rates should be extremely low;
- labor law.
The country wins in many respects in the development of its own economy, creating free economic zones. Offshore zones have specific goals:
- mutual investments of countries in the development of any industry or production;
- familiarization with the latest foreign technologies and their application;
- attracting a large influx of foreign currency;
- introduction of new systems for organizing and conducting production;
- job creation and export development;
- bringing social, business and economic infrastructure to a new level of development.
All this leads both to an improvement in the economic situation in the selected region, and throughout the country as a whole.
SEZ classification
Due to the fact that many countries began to organize offshore zones in their territories, this led to the need to streamline and classify them. Nowadays, several SEZs are distinguished by the signs that underlie them:
- What is the purpose of investing - to develop an external or internal market.
- Economic motives - in some regions where the economy is very weak, they introduce tax incentives for the growth of small and medium-sized businesses, which revives it, in others they create favorable conditions for foreign investment, which leads to an inflow of foreign capital.
- The development of a particular industry.
- The subjects of ownership are private, state or mixed-type companies.
This classification allows business owners to choose exactly where to open their own business or where to invest their money.
The advantage of creating a free economic zone
Today, opening or buying a ready-made offshore company is beneficial for several reasons:
- Such a company expects minimal taxation.
- The security of the businessman’s assets is ensured.
- Complete confidentiality of data on the owner and shareholders of the company.
- Cash safety in reliable foreign banks. ”
- Economic stability of countries with offshore zones.
Under such favorable conditions, many businessmen prefer to open their companies in free economic regions.
List of SEZ countries
Worldwide offshore zones today can be represented as a whole state, or any part or region of it. In the United States, each state has its own jurisdiction, and some of them are free economic zones (for example, Delaware and Oregon). Also in Switzerland, a number of cantons have privileges for doing business in the form of low tax rates.
Since there are many economically free zones in the world today, it is sometimes difficult to choose exactly where to open your own company, so that it not only receives maximum profit, but also is protected in the legal field. Therefore, political, economic and social stability in the state should be taken into account.
The full list of offshore zones includes 26 countries on whose territory the most comfortable conditions for doing business are created, among them Andorra, Monaco, Liberia, Switzerland, Panama, New Zealand and others. In some countries, free economic zones have been created in certain regions, for example, in Germany, Canada, the USA and other countries.
Offshore Registration
Before deciding where to register your company, you should know that a non-resident pays a tiny percentage of the cost of the business to maintain it abroad. In order to transfer to the offshore zones of the company, to register them or to buy a ready-made business, it takes only a few steps:
- Choose the region with the most favorable conditions for the functioning of production. Non-resident activities include:
- insurance, banking and finance;
- export and import operations;
- mutual settlements between partner companies;
- asset allocation and tax optimization.
2. Based on the selected business, choose an offshore with the lowest tax rate, while the main company can be registered in one SEZ, and a subsidiary in another.
3. To study the conditions of registration and work in this region.
There is a conditional division of non-resident jurisdictions in different countries of the world.
Low tax areas
Of the five types of non-resident jurisdictions, the most popular are the low-tax free economic zones. In these countries, the most favorable conditions are provided to foreign investors. These include Canada, Ireland, Scotland and the United Kingdom (for international trade), Cyprus and the Isle of Man (for banking and insurance).
Classic Fez
There are countries that offer legal conditions to avoid paying taxes while maintaining the complete confidentiality of clients' personal information and protecting their assets. At the same time, they are guaranteed financial integrity.
Similar offshore zones are BVI, Panama, Belize, Seychelles, Mauritius, Dominica, Saint Kitts and Nevis, the island of Anguilla. Supervision over the legality of the activities of these economically free regions is monitored by special institutions and the IMF.
European free economic zones
In Europe, offshore zones are more tied to specific business niches. For example, in Latvia favorable conditions for the registration of IT companies, in the Netherlands and Switzerland - holding companies and banks, in the Czech Republic, Slovakia and Bulgaria there are significant benefits for the development of tourism and agriculture.
The opening of such a company in a European country is prestigious, respectable and reliable, although accounting will have to be carried out, since this is a classic type of offshore.
Offshore zones in Russia were abolished in 2004, after the decree on the abolition of income tax benefits came into force.
Asian free economic zones
In Asia, offshore is at the "three pillars" - Hong Kong, Singapore and China. In these countries, only financial transactions conducted directly at the place of registration are taxed. Otherwise, these are extremely favorable regions for conducting commercial and intellectual business related to innovative developments and research.
