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For a long time, many clients have consulted us with questions like: "What is a trust?", "What are the uses of a trust?", and "How can one allocate assets and plan taxes?". Today, Oushin will guide you through the essentials of trusts. NO. 1｜What is a Trust? Basic Definition of a Trust Before understanding trusts, we need to first grasp three concepts: Settlor: The settlor is the entity that establishes the trust, also known as the donor or grantor. The settlor sets up the trust and legally transfers control of their assets to the trust. In certain types of trusts, the settlor can also act as the beneficiary, trustee, or both. Trustee: The trustee is a third party that manages the trust assets according to the terms of the trust. In most countries, trustees can be local licensed institutions or a private trust company (PTC) established by the settlor themselves.

Offshore companies have been popular in the international market for many years, but for a long time, they were a mysterious concept for Chinese people. With the development of reform and opening up, China has integrated with the world, and more and more Chinese enterprises and affluent new elites are "going global," making it common to establish companies overseas. Many well-known Chinese enterprises have offshore companies abroad, such as Baidu, Alibaba, Tencent, and Bilibili. Today, Oushin will provide a detailed understanding of what an offshore company is. NO. 1｜An offshore company, as the name suggests, is a company registered outside the place of residence. For example, non-local residents register companies in countries or regions like Belize or Mauritius. Among Chinese enterprises registering offshore companies overseas, Sina is a prime example. Due to Chinese laws and the Ministry of Industry and Information Technology not allowing internet companies with servers in China to list abroad, Sina cleverly utilized an offshore company to register a subsidiary with actual control overseas.