For most of the entrepreneurs, it is a such complicated and heavy-load matter to register a company in inland China. Especially for the group of SOHO companies and people, there exist many unsure risks. 

Nowadays the company founders have to solve a lot of procedures to finish registering one company, also need to spend lots of money and energy.  Inland foreign trade companies as general tax payer have to pay value added tax, stamp tax, urban construction tax, additional education tax, regional  education fee, and withholding  individual income tax, also entrepreneur income tax.

We can see that the international trade environment for inland foreign trade companies is not so positive, the outcome and tax cost are too much high. So some  founders give up the idea to create a new company. On the other side, we can register one company in HongKong and other off-shore areas, the procedure is much more easier and the information of the stockholder is confidential, people need not to pay much tax, and the operation cost is low, the international cognition is high.