Company- Management | Offshore Companies International

How to Open an Offshore Company Bank Account

If you engage OCI (www.offshoreincorporate.com) to assist you to open an Offshore Account for your Company or Trust or Foundation or LP here’s how the system works:

When you first contact us we will email you a bank account brochure showing names and key details as regards the 50+ banks that we can assist to open an Offshore account with. This brochure contains details of each banks’ minimum deposit requirements, details of key services offered and set up costs.
Once you’ve decided where you want to incorporate (and how you wish to structure your Offshore Company/entity) we will email you for completion and return a banking questionnaire. The answers you provide therein will give us a snapshot of your banking requirements such as should enable us to recommend a/the bank most likely to meet your needs.
One of the partners in the firm (ie our Bank Accounts Manager) is a Chartered Accountant. For the past 10 years all she has done all day every day (apart from the firm’s Accounts) is assist clients to open Bank Accounts. She will review (and our In-House Lawyer will also review) your completed Bank Account Questionnaire. Once that’s done we will email you a short list of Banks that we feel are most likely to meet your needs + details as regards each bank (including their fees/charges).
You should review that info and then tell us which bank or banks you wish to open an account with
We will send you an (in house) Instruction form for completion as regards that particular bank
We use the data as captured in that order form to complete the bank account application forms for you
We arrange for the bank account application to be signed by the Company Director (and account/authorised signatory) for delivery to the bank + we will email you to tell you what info/docs you will need to supply
You should then furnish us/the bank with a detailed summary of the company’s proposed business activities + proof of your ID/residency as per the bank’s requirements (ie in the event that you are the underlying beneficial owner of a company applying for the account or nominated as account signatory). Certain banks also require a bank reference.
The Bank typically comes back with 2-3 rounds of questions. We will seek instructions from you as regards the bank/s queries.
We then use those instructions to draft answers to the Bank’s questions.
We then send answers to the bank’s questions directly to the particular Officer at the bank handling your Company/entity’s application
We follow up with the bank until the account is opened
Immediately the Account is opened we will either (securely) send you the account coordinates etc or arrange for the bank to securely send that info (+ any issued debit/credit/ATM card) to you

All the above work/services are included in the fixed fee that we charge you for providing assistance to open a bank account.

The fee for us to assist you to open an Offshore Account for your Offshore Company/Entity would be anywhere from $550 up to $1,550 (ie the amount of the fee depends on which bank you choose).

(Note we only assist to open accounts for Companies/entities formed by us).

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Set up a Subscription Based Startup Business Tax Free Offshore

Are you looking to startup a Subscription based business?

(For the uninitiated) Subscription Based businesses began in the media world many years ago. Before the Information age people would subscribe to a particular magazine or news service or book club ie the subscriber would pay a regular fee (eg a monthly fee or yearly fee) to regularly receive a particular newspaper or magazine. (Eg when I was a boy my parents subscribed to a record club and received a certain number of new vinyl LP records every month).

With the technological revolution, and in particular the advent of SaaS (Software as a service) products, a LOT of businesses are shifting away from the traditional cash flow model (ie where revenue is derived from a customer’s one-off purchase) to a subscription based revenue model where revenue flows in on a recurring basis. In this later scenario subscribers pay subscription fees periodically in return for consistent access to the delivery of a particular good or service.

Examples of latter-day subscription based models include:

Music streaming services (eg Spotify)
Pay TV services (eg Netflix)
Fitness Clubs (ie Gyms)
Online Newspapers (eg News Limited)
Software Services (eg MYOB/Accounting Software Providers)

With such a business often, if not typically, the services are offered Online (ie via a website and/or an active online direct marketing campaign), the subscriber signs up online and the service is delivered online (ie via download or via email) or via post/courier.

Such a business lends itself perfectly well to an “Offshore” Corporate Structuring Plan.

Here’s how such a business can/will typically work from an “Offshore” Perspective:

A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated to own/operate the business
You design/launch a website or Online Product/Sale portal which is owned by the Offshore Company
The IBC owns all proprietary items (including also the/any Trademarks, Operating software/systems, soft products to be delivered to customers etc)
Your website/landing page should ideally should be hosted in a nil tax/private Jurisdiction (Iceland is currently the most popular destination for such web hosting, Singapore is also often favoured)
The clients find you and/or contact you via the web
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” Director.
The client applies to become a subscriber Online (eg via your website)
Your standard sale agreement/website terms and conditions should provide that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company)
Before the client clicks the “subscriber” button he/she clicks on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email or text to the buyer, after he/she has paid online; In simple terms what this means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between you and the buyer for you to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which, in effect, the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a client buys and you send an email thanking him for payment that concludes as contract of sale at law)
Ideally the Company’s Board of directors would meet once a month to ratify (ie belatedly approve) all subscription contracts signed up/entered into in the month previous
An Offshore account (which can/will also be set up to receive card payments via a merchant account) is opened in a nil tax banking centre (ie a jurisdiction/country which does not tax interest paid by local banks on bank deposits)
Subscribers pay the IBC; All such monies are banked free of tax in the first instance
You or your local company would/could be contracted by the IBC to manage sales/delivery of product/website maintenance/whatever
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

Management/Ownership Structure

As alluded to, in order to minimise the chances of the IBC being taxed onshore, ideally, the IBC should/would be (and be seen to be) managed and controlled from Offshore. How this can be achieved is by including a Nominee Director as part of the Corporate structure. For details of how that can work click on these links:

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

Ideally – so you can swear on oath in the event of a tax investigation, law suit or regulatory inquiry – I am not the beneficial owner of this Company, (which could get you around what might otherwise be a substantial tax or legal liability eg imprisonment for tax evasion) you will want to set up a Private Foundation to act as the shareholder of your IBC. (This should also assist you to get around CFC rules ie if you live in a country which has such a law).

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by your Offshore Company (and/or on any distributions paid to you by the Foundation); The rest of your Online sales earnings you should be able to bank, and/or invest, Offshore in a nil tax environment.

Similarly, if a product that you sell doesn’t perform and a customer tries to sue you the good news is your personal assets should not be at risk as the customer has contracted with a limited liability Company (ie the Company carries the legal risk, not you personally). Moreover, having your business incorporated Offshore in a foreign/strange land is of itself a deterrent. (Have you ever tried to sue/get money out of an “Offshore” Company? It’s the Litigation Lawyer’s equivalent of climbing Mount Everest!)

Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Import or Market PPE Using a Tax Free Offshore Company

The COVID 19 pandemic has seen a massive market develop for the supply of Personal Protective equipment (eg Facemasks, surgical masks, surgical gloves, surgical gowns, hand sanitizer etc).

If you are buying these goods from one country (eg China) and selling them into a 2^nd country (eg the USA or Europe or South America) but living in a 3^rd country you’ll be pleased to know that such a business lends itself well to an “Offshore” Corporate structuring Plan.

Here’s how it will work:

A nil tax offshore company (commonly an International Business Company ie “IBC”) is incorporated in a country that does not tax income earned/sourced outside of the home country (let’s say the Company is called “IBC Trading Limited”)
IBC sets up an Offshore bank account, in a nil tax banking centre, which receives customer payments (including ultimately those made via a merchant account)
Ideally the website and server are hosted/located in a country which does not tax business on the basis of server location (eg Singapore)
Customers contract with and pay the IBC. The contract is formed Offshore, ie in a nil tax jurisdiction (see below re how that is achieved). All sales monies are banked free of tax in the first instance
IBC pays the manufacturer for the goods. The manufacturer ships (or couriers or posts or airmails) the product or goods direct to IBC’s customer
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” director.
Your standard sale agreement/website terms and conditions should provide (a) that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company) and (b) that the source of the income is the contract. (If the order come in via website, before the client clicks buy he/she clicks on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions)
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email or text to the buyer, after he/she has placed the order; In simple terms what that means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between your Company and the Buyer for your Company to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a client buys and you send an email thanking him for payment that concludes a contract of sale at law)
(For belt and braces) ideally the Company Board of Directors should meet once a month and ratify all contracts entered into in the previous month
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income. Alternatively the Company could loan you money (a loan is not taxable) or buy your investments direct (which would avoid the Company having to pay you “income” which would have tax consequences)
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

The other possibility is you could simply act as a Commission Agent for the Manufacturer of the PPE. Such an operation also lends itself well to an Offshore Corporate Structuring Plan. See below which explains how.

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

How To Use an IBC To Act as a Commission Agent or Broker

Acting as a Commission Agent or Deal Broker is a line of business which lends itself well to an Offshore Corporate Structuring Plan.

In this model structure (ie as set out below) it’s assumed that you will be acting as a middleman between a buyer and seller and if the buyer and seller do business you get paid a commission ie typically a percentage of the sale/deal proceeds.

To summarise how it would work is:

You set up a zero tax Offshore Company eg an International Business Company (“IBC”) with a tax haven based Nominee Director
You are appointed as the IBC’s Authorised Representative
On behalf of the IBC you negotiate terms with the Seller and or Buyer to pay your IBC a Commission if/when the Buyer and Seller do business
The Commission Agent/Broker agreement/contract is signed Offshore by the Nominee Director
The source of the income is the contract.
Because the contract was signed offshore in a nil tax environment there should be no tax payable on income generated by the contract (a) where the Company is incorporated and (b) where you live (assuming you structure and administer the Company in the right way).
When you need some living/spending money the IBC pays you a wage, or consulting fees or a commission (eg a percentage of trading profits generated)
That living/spending money can be paid to your local bank account (which means it would be assessable income wherever you are tax resident though you should also be able to claim a sizeable amount of allowable deductions eg for home office, car, equipment, insurances, travel, stationary etc etc to reduce the amount of your “taxable” income at home). More sizeable amounts could be accessed by way of loan or a 2nd Offshore Company could be formed to buy your onshore investments
If you don’t want the authorities to know how much money you are earning eg by way of wages you could convert your hard currency into Bitcoin and/ or you could use an anonymous ATM or Debit/VISA card to withdraw $ from an Auto Tele Machine (though technically that receipt would be assessable income for local tax purposes)

The majority of trading profits would be banked and or reinvested Offshore potentially tax free.

In either structuring scenario, ideally – so you can swear on oath in the event of a tax investigation, law suit or regulatory inquiry – I am not the beneficial owner of this Company, (which could get you around what might otherwise be a substantial tax or legal liability eg imprisonment for tax evasion) you will want to set up a Private Foundation to act as the shareholder of your IBC. (This should also assist you to get around CFC rules ie if you live in a country which has such regs).

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by the company (and/or on any distributions paid to you by the Foundation); The rest of your Online/sales earnings you should be able to bank, and or invest, Offshore in a nil tax environment.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Set up an Education Products Business Tax Free Offshore

With the slow decline in the popularity of (&, post Covid, the practical challenges of using) traditional classroom based educational institutions, ever increasing amounts of students are looking for Online learning/educational opportunities.

As a result a new substrata of entrepreneurs has begun to emerge, ie persons & businesses offering direct education products/courses (eg Literacy programs, numeracy programs, financial educational products, online learning tools etc).

With such a business typically the services are offered Online (ie via a website and/or an active online direct marketing campaign) and delivered online (ie via download or via email) or via post/courier.

A business where goods or services are advertised for sale, and/or delivered, online lends itself (rather) well to an “Offshore” Corporate Structuring Plan.

Here’s how such a business will typically work from an “Offshore” Perspective:

A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated to own/operate the business
You design/launch a website or Online Product/Sale portal which is owned by the Offshore Company
The IBC owns all proprietary items (including also the/any Trademarks, Operating software/systems, soft products to be delivered to customers etc)
Your website/landing page should ideally should be hosted in a nil tax/private Jurisdiction (Iceland is currently the most popular destination for such web hosting, Singapore is also often favoured)
The clients find you and/or contact you via the web
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” director.
Your standard sale agreement/website terms and conditions should provide (a) that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company) and (b) that the source of the income is the contract. Before the client clicks buy he/she clicks on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email or text to the buyer, after he/she has paid online; In simple terms what that means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between you and the buyer for you to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a client buys and you send an email thanking him for payment that concludes as contract of sale at law)
An Offshore account (which can/will also be set up to receive card payments via a merchant account) is opened in a nil tax banking centre
Customers/clients contract with and pay the IBC; All such monies are banked free of tax in the first instance
You or your local company would/could be contracted by the IBC to manage sales/delivery of product/website maintenance/whatever
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by the company (and/or on any distributions paid to you by the Foundation); The rest of your Online sales earnings you should be able to bank, and or invest, Offshore in a nil tax environment.

Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

HOW TO SET UP A STARTUP ADVISOR SERVICES BUSINESS OFFSHORE

With the recent realigning of the world economy a proliferation of new start up businesses have begun to emerge.

This realignment presents business opportunities for entrepreneurs in the start up advisory service sector.

These types of business are generally subscription based with the adviser providing (hopefully useful!) information to the would be start-up business owner on a regular (commonly monthly) basis eg information/advice in regard to:

How to get set up Online
How to market your services
Accounting systems
What kind of legal structure to adopt
Business pitfalls to be aware of
Market trends
Ongoing Financial mentoring/management
Etc

Typically the customer is sourced/found, and all services are delivered, online.

A business where goods or services are advertised for sale, and delivered, online lends itself (incredibly) well to an “Offshore” Corporate Structuring Plan. Here’s how it usually works:

A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated to own/operate the business
You design/launch a website or Online Product/Sale portal which is owned by the Offshore Company
The IBC owns all proprietary items (including also the/any Trademarks, Operating software/systems, soft products to be delivered to customers etc)
Your website/landing page should ideally should be hosted in a nil tax/private Jurisdiction (Iceland is currently the most popular destination for such web hosting, Singapore is also often favoured)
The clients find you and/or contact you via the web
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” director.
Your standard sale agreement/website terms and conditions should provide (a) that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company) and (b) that the source of the income is the contract. Before the client clicks buy he/she clicks on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email or text to the buyer, after he/she has paid online; In simple terms what that means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between you and the buyer for you to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a client buys and you send an email thanking him for payment that concludes as contract of sale at law)
An Offshore account (which can/will also be set up to receive card payments via a merchant account) is opened in a nil tax banking centre
Customers/clients contract with and pay the IBC; All such monies are banked free of tax in the first instance
You or your local company would/could be contracted by the IBC to manage sales/delivery of product/website maintenance/whatever
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by the company (and/or on any distributions paid to you by the Foundation); The rest of your Online sales earnings you should be able to bank, and or invest, Offshore in a nil tax environment.

Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Sell Digital Assets Using a Tax Free Offshore Company

Whenever there is economic disruption on a major scale (such as we are experiencing presently thanks to the Corona pandemic), opportunity comes knocking.

People working from home and or with more time on their hands are starting to realize that valuable digital assets can be sold online and there is more demand for such products than ever before.

Examples of digital assets include:

EBooks
Original music (including beats, jingles, film music, ringtones etc)
Videos (eg original films, tutorials etc)
Photos (eg for website use, Look up tables, mock up images etc)
Icon designs/artwork (eg business logos, business cards, website home pages etc)
Software (eg add ons/plugins for video games, website templates etc)
Knowledge (eg Coaching, teaching, financial, legal etc)
Marketing services (eg Email campaign templates, add flyers etc)

What do all these products/services have in common?

They can be marketed and delivered online.

A business where goods or services are advertised for sale, and delivered, online lends itself (incredibly) well to an “Offshore” Corporate Structuring Plan. Here’s how it usually works:

A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated to own/operate the business
You design/launch a website or Online Product/Sale portal which is owned by the Offshore Company
The IBC owns all proprietary items (including also the/any Trademarks, Operating software/systems, soft products to be delivered to customers etc)
Your website/landing page should ideally should be hosted in a nil tax/private Jurisdiction (Iceland is currently the most popular destination for such web hosting, Singapore is also often favoured)
The clients find you and/or contact you via the web
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” director.
Your standard sale agreement/website terms and conditions should provide (a) that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company) and (b) that the source of the income is the contract. Before the client clicks buy he/she clicks on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email or text to the buyer, after he/she has paid online; In simple terms what that means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between you and the buyer for you to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a client buys and you send an email thanking him for payment that concludes as contract of sale at law)
An Offshore account (which can/will also be set up to receive card payments via a merchant account) is opened in a nil tax banking centre
Customers/clients contract with and pay the IBC; All such monies are banked free of tax in the first instance
You or your local company would/could be contracted by the IBC to manage sales/delivery of product/website maintenance/whatever
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by the company (and/or on any distributions paid to you by the Foundation); The rest of your Online sales earnings you should be able to bank, and or invest, Offshore in a nil tax environment.

Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Use a Tax Free Offshore Company to Trade Currencies

The impact of the Corona virus pandemic has sent markets into a state of turmoil the world over and has seen certain countries’ currencies weaken whilst others strengthen.

Such turbulence presents opportunities for professional currency (forex) traders.

If that’s your chosen field, you’ll be pleased to know that Currency Trading is an activity which lends itself well to an Offshore Corporate Structuring (Tax Minimization) Plan.

To summarise how it would work is:

You set up a zero tax International Business Company (“IBC”)
The Company is set up with a (nil tax jurisdiction based) “Nominee” director and with an Offshore “Office” (ie in a nil tax jurisdiction/the country of incorporation)
The IBC opens an account with a Forex Broker
You are appointed as the IBC’s authorised trader or Trading Manager (ie the Director delegates to you the power to place/responsibility for placing the buy and sell orders on behalf of the Company)
All legal contracts/agreements (eg Brokerage Contracts) are signed, and all board meetings take place Offshore ie in a/the nil tax jurisdiction wherein the Company and or the Nominee Director is based.
Ideally you would provide the Director with some kind of monthly Trading (ie buys and sell records) report.
The Director ratifies/confirms all trades placed by you at the end of each Trading month
(with this admin system in place) For source of income purposes the IBCs trading profits are seen to be generated by calls made ultimately by the Nominee Director ie in a nil tax environment, tax free/offshore
When you need some living/spending money the IBC could pay you a wage, or consulting fees or a commission eg a percentage of trading profits generated (or could provide you with a tax free loan ie to assist with asset/investment purchases, see below)
That living/spending money can be paid to your local bank account (which means it would be assessable income wherever you are ordinarily resident for tax purposes though you should also be able to claim a sizeable amount of allowable deductions eg for home office, car, equipment, insurances, travel, stationary etc etc to reduce the amount of your “taxable” income at home)
If you don’t want the authorities to know how much money you are earning by way of wages potentially you could use an anonymous ATM or Debit/VISA card to withdraw your wages from an Auto Tele Machine (though technically – unless it’s documented as a draw down on an overdraft/loan from the Company – that would be classified as income for tax purposes ie reportable)
You could also potentially draw down money from the Company tax free by way of loan or have the Offshore Company (or a subsidiary thereof) buy your investments (ie to avoid you having to receive money directly from the Company – which would likely have tax consequences).
The majority of trading profits would be banked and or reinvested Offshore potentially tax free.

AND if you live in a country where the trading of forex is heavily regulated (eg The USA) an Offshore Company can get you access to Brokers outside the your home country which offer much better trading terms/conditions (particularly in regards to leverage) than what you can get at home.

AND because a high percentage of our client base are professional forex traders we know and can introduce you to a wide range of quality Brokers (including Brokers who will accept as customers Offshore Companies set up and or owned by US persons).

Note:- to ensure that your name isn’t recorded in the Company registers as “beneficial owner” (and to get around CFC rules, should you live in a country which has them) ideally you would also set up a Private Foundation to act as shareholder of the Company.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How To Use a Tax Free Offshore Company to Trade Stocks & Shares

With the extreme market volatility we are seeing right now, thanks to the Covid 19 inspired economic downturn, the chance exists to make a, potentially once in a lifetime, small fortune Trading Shares on the International Stock Exchanges/Stock Markets.

You’ll be pleased to know that Share Trading is an activity which lends itself well to an Offshore Corporate Structuring (Tax Minimization) Plan.

To summarise how it would work is:

You set up a zero tax International Business Company (“IBC”)
The Company is set up with a (nil tax jurisdiction based) “Nominee” director and with an Offshore “Office” (ie in a nil tax jurisdiction/the country of incorporation)
The IBC opens an account with a Share Broker
You are appointed as the IBC’s authorised trader or Trading Manager (ie the Director delegates to you the power to place/responsibility for placing the buy and sell orders on behalf of the company)
All legal contracts/agreements (eg Brokerage Contracts) are signed, and all board meetings take place Offshore ie in a/the nil tax jurisdiction wherein the Company and or the Nominee Director is based.
Ideally you would provide the Director with some kind of monthly Trading (ie buys and sell records) report.
The Director ratifies/confirms all trades placed by you at the end of each Trading month
(with this admin system in place) For source of income purposes the IBCs trading profits are seen to be generated by calls made ultimately by the Nominee Director ie in a nil tax environment, tax free/offshore
When you need some living/spending money the IBC could pay you a wage, or consulting fees or a commission eg a percentage of trading profits generated (or could provide you with a tax free loan ie to assist with asset/investment purchases, see below)
That living/spending money can be paid to your local bank account (which means it would be assessable income wherever you are ordinarily resident for tax purposes though you should also be able to claim a sizeable amount of allowable deductions eg for home office, car, equipment, insurances, travel, stationary etc etc to reduce the amount of your “taxable” income at home)
If you don’t want the authorities to know how much money you are earning by way of wages potentially you could use an anonymous ATM or Debit/VISA card to withdraw your wages from an Auto Tele Machine (though technically – unless it’s documented as a draw down on an overdraft/loan from the Company – that would be classified as income for tax purposes ie reportable)
You could also potentially draw down money from the Company tax free by way of loan or have the Offshore Company (or a subsidiary thereof) buy your investments (ie to avoid you having to receive money directly from the Company – which would likely have tax consequences).
The majority of trading profits would be banked and or reinvested Offshore potentially tax free.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How to Run an Ecommerce Store using a Tax Free Offshore Company

The Corona Virus has seen a stampede of entrepreneurs rushing to get set up Online. If that’s you (ie if you’re looking to launch an Ecommerce Store Online) you’ll be pleased to hear/read that such a business lends itself (really) well to an “Offshore” Corporate Structuring Plan. Here’s how it usually works:

A nil tax offshore company (commonly an International Business Company “IBC”) is incorporated to own/operate the business
You design/launch a website which is owned by the Offshore Company
The IBC owns all proprietary items (including also the/any Trademarks, Operating software/systems, soft products to be delivered to customers etc)
The website ideally should be hosted in a nil tax/private Jurisdiction (Iceland is currently the most popular destination for such web hosting, Singapore is also often favoured)
The customers find you and/or contact you via the web
The IBC is seen to be managed and controlled from (and ideally beneficially owned from, see below) Offshore. This is achieved via the appointment of a (nil tax jurisdiction based) “Nominee” director.
Your standard sale agreement/website terms and conditions should provide (a) that a contract is not formed until the customer’s offer is accepted by you (ie the Offshore Company) and (b) that the source of the income is the contract. Before the customer can click the “Buy”button he/she must on a button acknowledging that he/she has read and agrees to be bound by your terms & conditions
Acceptance of the buyer’s offer would be provided by the Company (which is seen to be managed from “Offshore” via a nil-tax-jurisdiction resident Nominee Director) sending an email to the buyer, after he/she has paid online; In simple terms what that means is that the situs of the Contract ie the place where the contract of sale (ie the agreement between you and the buyer for you to supply goods in consideration of the buyer paying), at law, is formed is the director’s location ie a nil tax environment…
Hence the income – from which the contract of sale is the source – has been/is derived, prima facie, in a zero tax jurisdiction (every time a customer buys and you send an email thanking him for payment that concludes a contract of sale at law)
An Offshore account (which can/will also be set up to receive card payments via a merchant account) is opened in a nil tax banking centre
Customers contract with and pay the IBC; All such monies are banked free of tax in the first instance
You or your local company would/could be contracted by the IBC to manage sales/delivery of product/website maintenance/whatever
(If you need a regular income) You would invoice the IBC periodically (eg monthly) for this service which income would be assessable income in your home state – though a smart Tax Accountant should be able to assist you to claim a series of expenses against this income (eg home office, equipment, travel, phone/internet/utilities etc) to significantly reduce the amount of tax payable on this income
Ideally once you start to grow you and to add substance you would be wise to set up your MD/Board and or a sales team to take orders and receive income in a low tax onshore environment (eg Hong Kong, Ireland, Singapore, Cyprus etc as per the Amazon/Google model).

http://offshoreincorporate.com/faq/should-i-engage-nominees-or-should-i-direct-and-hold-the-shares-in-my-offshore-company/

http://offshoreincorporate.com/faq/how-can-i-protect-my-underlying-ownership-of-my-offshore-company-where-a-nominee-is-engaged-to-act-as-director-or-shareholder/

With a bespoke legal/admin structure in place you should only be liable to declare and pay tax on income paid to you by the company (and/or on any distributions paid to you by the Foundation); The rest of your ECommerce store earnings you should be able to bank, and or invest, Offshore in a nil tax environment.

Similarly, if a product that you sell doesn’t perform and a customer tries to sue you, the good news is your personal assets should not be at risk as the customer has contracted with a Limited Liability Company (ie the Company carries the legal risk, not you personally). Moreover, having your business incorporated Offshore in a foreign/strange land is of itself a deterrent to law suits. (Have you ever tried to sue/get money out of an “Offshore” Company? It’s the Litigation Lawyer’s equivalent of climbing Mount Everest!)

Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an IBC for such purposes.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

How to Form a New IBC Using Nominees

If you’re wanting to set up a new Company – and have/make your existing Offshore Company the owner thereof – here are the procedures that, in our experience, would ordinarily need to be followed (ie assuming your existing Company has a Nominee Director).

You would need to firstly explain to the Nominee director why it’s in the current Company’s best interests to form this new Company – an email sent to your Offshore Corporate Service Provider (“CSP”) addressed to the Nominee Director should suffice in this regard
The Company Director should appoint (or should already have appointed) you as an “Authorised Representative” of the Company. This will give you the necessary authority to liaise with the Company formation agent to arrange for all the docs that need to be prepared for the new Company to be formed
You’ll need to the email to your existing CSP the Incorporation application docs re the new Company that need to be signed by the existing Company “Nominee” Director
You should confirm to your existing CSP/the Nominee Director that you’ve sought legal advice in relation to the Incorporation docs (or explain why you say outside legal advice won’t be necessary prior to the Director signing the docs)
Your existing CSP’s Compliance Manager (or In-house Lawyer as the case may be) should review the docs as submitted and advise the Nominee Director so that the Nominee knows what he/she is signing
The existing Company will call a board meeting
At that Board meeting a Board resolution will be passed authorising (a) the existing Company to form the new Company and (b) authorizing a certain person to sign the incorporation docs for/re the new Company
This resolution will be drafted/put in writing in the form of a meeting minute and will be printed and signed by the Nominee Director
The Nominee Director will then sign the docs authorizing the incorporation of the new Company

10.The docs as signed will be emailed to you (and/or couriered to an address as provided by you as/if requested by you)

If you follow the above procedures at all times you have acted as would an employee or contractor of the Company.

As such your Private situation, ie as the actual Founder of/the person behind the Company, should never be revealed/compromised (ie assuming your existing Offshore Company has been structured/administered in a certain way).

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com