Study Of Legal Issues Of Offshore Company Cross-border M&A-as Represented By British Virgin Islands (BVI) Offshore Companies

World-renowned off-shore destinations like British Virgin Islands,Cayman Islands, Bermuda,Cook Islands,etc.,though based on tiny areas,have made significant impact on the world economy since mature financial markets and offshore company system are inoculated there.One thing in common in these areas is its very liberal environment of economy and legal system,which is,to maximal extent,open to international investors. Meanwhile,these areas not only attract investors with various aspects of favorable terms,but also provide them with the most convenient channels for the operation of transnational capital.Despite an off-shore company is a specific product under an off-shore legal framework,but nowadays with their advantages of low cost and liberalization,off-shore companies have taken a significant place in the economic globalization of the world. Therefore,the off-shore company issue is not only for a country,but a common one facing countries within the wave of economic globalization.With the further deep development of economic globalization,offshore companies have made growing impact on international investment,international finance,international taxation and so on.The development of offshore companies not only promotes,in turn,the international process of economic globalization,but also brings the negative effects on countries beyond off-shore destinations,such as capital flight,tax loss,financial crime,which thus causes various praise or blame for off-shore companies.China,as a developing country using tremendous amount of foreign capital,is opening to the outside world so that both positive and negative influence of offshore companies infiltrate into our country.Facts that foreign investors via offshore companies invest in China and merge domestic enterprises or examples that chinese businesses and individuals establish an overseas offshore company as a springboard to achieve the listing have become increasingly common,which is posing a major challenge to China's foreign investment laws and policies.Negative impacts from off-shore companies on China's foreign investment laws,tax system,foreign exchange and other financial regulatory systems should not be underestimated.Therefore,how to effectively regulate and guide the operating activities of offshore companies under legal system has become a significant study subject.We must believe that even if the offshore company is a double-edged sword,but as long as there is a sound legal mechanism to regulate,off-shore companies will definitely be able to play a more positive role,and thus the legal study and practice study of regulation of offshore companies will show its significance.