1. OFFSHORE OPERATION IN FEAE DONE BY : ISMAILOV ISKANDAR TEACHER : ATOKHODZHAEVA M

2. WHAT DOES OFFSHORE MEAN? Offshore is a word that means “away from the coast” or “off the shore”. This description applies to different types of activities carried out at sea like offshore oil exploitation or production of wind energy. Offshore is a growing operations practice worldwide. Over the last decade, companies have moved manufacturing operations abroad, primarily from developed to developing countries. This movement can be considered a strategy formulated in response to the increasing competitiveness of global markets.

3. DEFINITION OF 'OFFSHORE' 1. Located or based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion. 2. Offshore can also refer to oil and gas drilling operations that are conducted in the ocean

4. OFFSHORE COMPANY An offshore company is a legal entity established in a tax haven or offshore financial center, being protected by specific legislation which guarantees a status of partial or full tax exemption. Yearly maintenance fees range from US $100 to US $1500 or more, depending of the type of the company and its jurisdiction. In some jurisdictions, annual company fixed tax is paid to government such as it is case with the Republic of Panama. Shareholders and directors of an offshore company may enjoy generally a high level of privacy. In some jurisdictions, offshore companies may trade or do business only outside of the country in order to be tax exempt, while in others companies may do local and international businesstax havenoffshore financial cente

5. MADEIRA: OFFSHORE LEGAL AND TAX REGIMES Most offshore activity in Madeira takes place in and around the International Business Centre, which comprises the Free Trade Zone, and its associated services, together with financial institutions and the Shipping Registry. Offshore entities use conventional corporate forms, or the Offshore Trust, which exists only in the Free Trade Zone. The Holding Company exists independently of the Zone, but still uses conventional corporate forms. International Business Centre,

6. MADEIRA FORMS OF OFFSHORE OPERATION Offshore operations may take place within the following forms: Private Limited Liability Company Stock Corporation Holding Company Trust Shipping Company

7. OFFSHORE OPERATIONS – MAIN ASPECTS Different from the common sense expectation, offshore has been practiced by companies for a long time ago. For instance, Ford Motor Company started to produce abroad in 1904, and in Europe, German Daimler started to produce abroad in 1891 (Sturgeon, Florida, 2000). Thus, offshore actually is not a new phenomenon (e.g. offshore plants, Moxon, 1975).

8. OFFSHORE BANKING Offshore banking The business that banks’ foreign offices conduct outside of their home countries Banks operate offshore though any of three types of institution: Agency office Subsidiary bank Foreign branch

9. OFFSHORE CURRENCY TRADING Offshore currency trading Trade in bank deposits denominated in currencies of countries other than the one in which the bank is located It is referred to as Eurocurrency trading. Eurodollars Dollar deposits located outside the U.S. Euro banks Banks that accept deposits denominated in Eurocurrencies