Offshore Financial CentersOffshore financial centers (OFCs) are usually referred to as:
Many jurisdictions around the world have been recognized as OFCs. The International Monetary Fund (IMF) has listed more than 60 jurisdictions according to its definition, but the better known ones are the British Virgin Islands (BVI), the Bahamas, the Cayman Islands, Hong Kong, and Panama.
The potential of offshore financial centers is growing each day with more and more funding flowing into these jurisdictions from both private individuals and institutions. The stock exchanges of the Bahamas, Bermuda, the Cayman Islands, Luxembourg, Hong Kong, Panama, Singapore, and other offshore jurisdictions have seen tremendous growth in the past decade and this trend shows no signs of abating.
Many onshore and offshore companies are actively raising venture capital in OFCs to enlarge their share capital and business operations before they undertake an IPO. The current global trends basically involve investing in China, India, and offshore financial instruments.