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Why offshorcing is so profitable?

Posted by pawaniqr On 10:57 PM
An important advantage of investing offshore is that you could be gaining access to investments that only particular jurisdiction offer - most often because the "compliance requirements" in your own country are nothing less than outrageously expensive to honor! This does not mean that these investment opportunities are unsound. It actually means the opposite: that the people behind them are not stupid enough to spend hundreds of thousands of dollars in order to obtain permission from your government to market their opportunity in your country, when they can obtain their financing elsewhere, at far more reasonable terms.

In order to solicit an investment offer in the USA,Uk for instance, you would have to comply with the US Security Commission's insane demands for information, in addition to accepting their filing demands and other requirements, and a whole bunch of other issues that all are officially "protecting the investors-to-be" against a scam. The costs of doing all this can easily drain a promising business venture for half a million dollars.

And what is a prosperous business getting in return for spending that money? Answer: the rights to solicit the investment opportunity to citizens in the USA. Nothing else. No help in any way with the marketing. No support. Nothing that could be helpful for the business in regards to connecting with its investors-to-be, so it can obtain its needed financing.

So, would this be an attractive situation for a young business with a brilliant idea that just needs a million or two to get launched?

The answer is clearly, NO. If such a dynamic business could afford to spend money like that, it wouldn't need any cash injection from any investors. The fact of the matter is that only the big multinational corporations have enough cash on their hands to be able to afford this kind of luxury.

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