Many people think that registering a company in the Cayman Islands is something that wealthy people do to evade taxes, but that's not the case.
Foreign-capital enterprises still have to pay taxes on their business income in China, and the rich have countless legal ways to minimize taxes without going through such trouble.
The biggest reason why the Cayman Islands are popular is that companies there are not subject to regulation.
Large capital flows are unrestricted, and there is no need to disclose company information, making it relatively convenient for overseas investments.
And that was exactly what Xiao Ming needed.
He had no choice since the majority of his money came from gambling ships, a classic case of dubious funding sources.
In order to prevent others from using it as an excuse to pick the fruit off his tree in the future, he had to take this step.
