Why are the offshore jurisdictions interested to register tax free companies?

Most of the tax havens are small countries with small populations. So even relatively minor amounts of revenue can and does make a difference. A mere $100 of Government duty paid at registration of the IBC, and another $100 paid every year by every renewing IBC, multiplied by tens or even hundreds of thousands of active offshore companies on the Registry, turn into millions of dollars of budget revenue, without ever burdening the country`s infrastructure. And that´s only the tip of the iceberg. The non-government impact is even larger. The aggregate amount of professional fees paid by all offshore companies to local Registered Agents, company managers and administrators amount to volumes far exceeding the government revenue. In addition, there`s offshore money settling down in offshore banks, insurance companies and investment funds. All in all, a successful offshore financial sector, as in Belize, provides jobs, career opportunities and income for a whole lot of people. In a number of countries the offshore services sector has virtually pulled out the nation from hopeless poverty into the developed world. The offshore services sector creates demand for good telecommunications, office space, computer equipment, business software, office furniture and all sorts of business supplies. Ultimately, all that offshore revenue filters down into all other sectors of the economy. The result is sizeable increase in overall prosperity and social stability of the country. That, in turn, strengthens the independence of that country – in particular, it´s ability to withstand economic and political pressures from foreign governments.