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Offshore Incorporation - why UK or US?


OxbridgeResearchers  5 | 722 ☆☆  
Jul 07, 2009 | #1
This is a genuine question. Why do offshore companies incorporate in the UK or US? By doing so they are bound by the respective laws of these two countries (consumer protection, etc etc). Offshore incorporation, which one would assume much easier for them, protects them from all that. So ... why do they go out of their way to incorporate in the UK/US?
chacha421  3 | 329  
Jul 07, 2009 | #2
This is other way round.... UK and US companies (other than home based so called legit paper mills like yours) have started to incorporate themselves in other countries in order to save costs for themselves. I m sure you must have heard the words like greenfield projects, frenchising, licensing, joint ventures etc etc.... As for as laws are concerned, let me tell you a secret, consumer protection and blah blah is just a myth.. a pure myth... an occasional goodwill gesture from companies other than that it is nothing..... Firms even manuplate Tax laws to evade or rather save taxes for themselves.......

OOOOPPPPPPPSSSSSSSS I share with you some of the dirty secrets of how the businesses are run......
exwriter  3 | 250  
Jul 07, 2009 | #3
Offshore Research ServiceBy incorporating in the UK or US those availing themselves of their services assume the company to be bona fide because it is incorporated within these countries.

This is particularly important with essay writing companies, as they are trying to persuade the customer that because they are incorporated in that country ALL or the VAST MAJORITY of their writers must also originate from that country.

Essay writing companies do not fear consumer protection laws because very few students are likely to avail themselves of protection under these laws for fear of being exposed.

Also, a point made by another poster in a different thread, the companies can hide behind the disclaimer that the work should only be used for research purposes.

Anyone who submits a paper written by someone else as their own, really has no protection, as the intention of the essay was supposedly for research purposes.

This is why there have never been any claims brought against these companies.
undertow2  4 | 97  
Jul 08, 2009 | #4
Anyone who submits a paper written by someone else as thier own, really has no protection

I was wondering about this. I remember reading once that consumer protection is virtually non-existent for certain ephemeral goods, i.e. things that aren't really physically there. An essay, e-mailed to a client, might come under this heading. If anyone knows the legal situation (rather than is just guessing), it'd be interesting to get some clarification.
WritersBeware  
Jul 08, 2009 | #5
Indeed, sellers' "virtual goods" are not insured by most online payment processors, including PayPal. This is because, in the event that a customer claims to have not received the product, the merchant is unable to provide "tracking information" to prove that he/she actually shipped the product.
OP OxbridgeResearchers  5 | 722 ☆☆  
Jul 08, 2009 | #6
Indeed, sellers' "virtual goods" are not insured by most online payment processors, including PayPal.

I see!!! Very very interesting. And one can assume that some clients take advantage of this?
WritersBeware  
Jul 08, 2009 | #7
Righto!

It's important to note that consumers are nearly as vulnerable, as the "quality" of a virtual good cannot be qualified or substantiated to or by a third-party payment processor. This is where fraudulent companies that knowingly employ horrible writers take advantage. When a customer complains to the credit card company about the "poor quality" of a paper (after the ripoff site refuses to issue a refund voluntarily), the credit card company declines to reverse the charge because reps at the credit card company are neither inclined nor qualified to make such a judgment.
OP OxbridgeResearchers  5 | 722 ☆☆  
Jul 08, 2009 | #8
This is where fraudulent companies that employ horrible writers take advantage.

It is how they stay afloat which really has me wondering. Must be the constant "rebranding" (fake new ownership announcements) ...
EW_writer  21 | 1981 ☆☆☆  
Jul 08, 2009 | #9
May I know who you mean by "they" exactly?
beckys  - | 5  
Apr 11, 2012 | #10

Foreign essay sites incorporated in the US (do the U.S. laws apply to them?)



If a foreign essay website has a formal business presence in the U.S. (because the owners used a registered agent to set up a corporation in the U.S.) - is it bound by the US laws (including taxation laws)?

It seems there are several big foreign research websites that are incorporated in the US, but in fact their owners and staff are based in foreign countries. How does the American legal system apply to such companies?
Phd Scholar  2 | 11   Student
Apr 11, 2012 | #11
Registering a company in country A while you are in country B doesn't really mean much to the customer in country A in case he is defrauded. The much the US government can do is to simply confiscate the assets of the company (like websites) but after that the law enforcers can't help you much in your attempt to reclaim your money(I am talking specifically about essay websites).

A fraudster holed up in Saudi Arabia can register an essay company in UK and gleefully perpetuate his trade against unsuspecting UK customers knowing very well the much he can lose is only his website.
beckys  - | 5  
Apr 11, 2012 | #12
Thank you. What about taxes - do foreign companies having business presence in the U.S. have to pay taxes in the U.S.? Or they only pay taxes in the foreign country?
Phd Scholar  2 | 11   Student
Apr 11, 2012 | #13
Any business entity registered in the US must pay taxes to the US government.
beckys  - | 5  
Apr 11, 2012 | #14
So they pay twice? Both in the foreign country and the U.S?
Phd Scholar  2 | 11   Student
Apr 11, 2012 | #15
That is a very general question; i guess it depends with the country you are talking about.
Out of curiosity- are you planning to establish an essay site in the US while you are not physically in the country?
beckys  - | 5  
Apr 11, 2012 | #16
are you planning to establish an essay site in the US while you are not physically in the country?

Yes, sort of. Is it a bad idea or is it illegal in some states?
Cite  2 | 1853 ☆☆☆  
Mar 30, 2021 | #17
Offshore incorporation helps companies that may have questionable financial resources avoid the taxman in their own country. It allows them to cover their financial tracks because they are not covered by the laws that would normally govern their income, money transfer, taxes, and overall financial movement in their true base of operations. Offshore incorporation is not something a company should brag about. They normally raise a red flag when they say so.
a1writer  3 | 292   Freelance Writer
Jul 08, 2022 | #18
@Cite
Being registered overseas is not necessarily a red flag. As someone else has posted on another thread, it is now illegal to advertise essay writing services in England and Wales. As a result many reputable UK essay companies have been forced to register overseas in order to legally circumvent the legislation and trade legitimately. So for example ukessays is trading name of a company registered in UAE.
noted  7 | 1948 ☆☆☆☆☆  
Jul 09, 2022 | #19
Offshore incorporation only has big-time benefits for large conglomerates that have ultra complicated financing and accounting records. There are always international tax loopholes that the rich can exploit. Academic writing companies cannot claim the same benefits though. They do not make the same amount of revenue to do so. There are even times when claims of offshore incorporation prove to be false. It is just a play they use thinking that it makes their dark company seem more legitimate. Do not overthink offshoring so much. It is irrelevant in this business.
The opinions are that of the author's alone based on an individual capacity. Opinions are provided "as is" and are not error-free.
a1writer  3 | 292   Freelance Writer
Jul 10, 2022 | #20
@noted
Are you deliberately misunderstanding the point of offshore companies so far as English essay writing companies are concerned. No one is overthinking offshore and neither is it irrelevant.

In order to operate legitimately in England and Wales, essay writing companies must now be based overseas. So offshore company registration is critical in this respect.

Hope you can now grasp this point.




Forum / General Talk / Offshore Incorporation - why UK or US?

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