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What are transaction costs for the Offshore Companies

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Basically, they are costs related to the company when it needs to raise funds for maintenance or investments. However, it uses financial transactions to raise this money, so that this amount can be used to search for raw materials, services, equipment, etc.

It is good to know that when a company goes to the market to obtain this type of financial resource, it finds some fees that may have a higher value than expected. This happens because of the common variation of these international operations, since there is the influence of the exchange rate. The Offshore company setup in Dubai  is the best person there.

Why is it important to track this type of spending?

For those who usually transact abroad, it is essential to keep an eye on how these costs work and how they can influence their operations. After all, they represent extra expenses and, depending on the case, can make a big difference in the final pricing.
Also, there is the legal issue, since it is important to know the legislative points of operations abroad, taxes to be paid, among other details. Thus, it is possible to carry out this type of transaction without problems and without the possibility of having to pay fines or even having to answer legally.

So, the importance of monitoring this type of expenditure is precisely to keep up with the rules stipulated in Brazil and guarantee the freedom to carry out these international negotiations.

What are the costs?

We will use the example of offshore companies, that is, companies located in tax havens, but which allow people from other countries to invest and operate through them. The cost of opening, maintaining and closing this type of organization depends on a few factors. The main one is the financial institution chosen to carry out this activity.

However, in general, the cost of opening does not usually exceed US $ 2 thousand, plus maintenance, which can be up to US $ 1.5 thousand. Of course, if it is a simpler structure, because the more sophisticated the company, the higher the costs. The offshore company with bank account  is important to be opened in this case.

What are the main fees charged for international transfers?

In addition to the basic costs of maintaining this business, banks usually charge a fee to carry out the financial transfer, in general. As well as other costs:

Contract cost: financial institutions usually place the amount of this fee plus the final cost of the shipment. It is important to be aware of how much this value represents in percentage over all. Several financial institutions no longer charge more.

The exchange rate itself: banks normally use a high spread over the commercial exchange rate. Basically, a cost margin is added to the commercial exchange rate. Thus, it is a value different from that determined by the market and totally arbitrary by the operator, always respecting the minimum cost of the operation for the financial institution. Opt for the UAE Free Zone  there now.

Swift:It is a messaging system called the Society for Worldwide Interbank Financial Telecommunications, so it is common to charge a fee for the expenses of this service. The amount is not fixed and depends on each institution;

 

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