ECONOMIC AND LEGAL PERSONALITY OF OFFSHORE COMPANIES: MAIN PECULIARITIES AND DEFINITIVE FEATURES

Abstract

The article studies the features of economic personality of offshore companies. The study covers the definition and analysis of the main features of economic and legal personality. In particular, it was concluded that economic and legal personality of offshore companies includes: positive incentives for a company itself – additional benefits and opportunities (provided by the country of registration in order to attract investment in its own economy); negative restrictive elements for a company (set by the country of registration to protect domestic entities, as well as set by the countries, where an offshore company actually operates to protect its own economic systems from possible abuse and wrongdoing). The following most specific features of economic and legal personality of offshore companies are highlighted: 1) simplified procedure of creation (creation of companies with offshore status is carried out by a simplified method established by the legislation of the relevant offshore jurisdiction); 2) total restriction of economic and legal personality in the jurisdiction, within which the creation and registration of an offshore company was carried out; 3) availability of additional benefits and opportunities due to the offshore status of a company (simplified reporting procedures, tax benefits, higher level of protection of trade secrets, confidentiality of information about founders and ultimate beneficiaries of the company, etc.); 4) restriction of the economic and legal personality of an offshore company in the country, where such a company conducts its business activities. Regarding the latter feature, there are two sub-features: 4.1) prohibition of offshore companies to carry out certain activities and business operations, 4.2) establishment due to the implementation of business activities and additional requirements for business operations for an offshore company and its potential counterparties. The article also pays attention to the restrictions on the economic and legal personality of offshore companies, defined by the current legislation of Ukraine (in the field of insurance, banking, etc.), considers and analyses the main of such restrictions.