Letterbox companies might be defined as chiefly legal entities established in a country where they have no (or very little) economic activity, in order to benefit from more advantageous tax and social security systems.

A letterbox company is therefore a company with no significant activity, created solely for the purposes of circumventing the applicable laws and regulations in the country in which it operates by registering itself in another.

Does anybody know of any research conducted on this issue? 

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