How To Run a Trade Finance Business Using a Tax Free Offshore Company

A Trade Finance Business lends itself well to an Offshore Corporate Structuring Plan. Here’s it can/would work:


  1. You form a tax free Offshore Company
  2. The client would sign off on a contract with your tax free Offshore Company for the Company to supply Trade Finance Services on certain terms
  3. The agreement would provide for the Company to be paid a fee for provision of these services
  4. The source of the fees would be the contract
  5. The contract would be signed/closed Offshore by the Company ie in a nil tax environment
  6. The Trade Finance itself ideally would also come from Offshore (ie from an Offshore Bank established in a nil tax environment)


As such you can create a scenario whereby the income is generated, prima facie, in a nil tax environment.


Provided the Company is (a) seen to be managed and controlled from Offshore and (b) seen to be owned/beneficially owned by an Offshore/non-local resident there should be no tax payable in your home country on the Company’s earnings.


In short you should be able to achieve (a) by deploying a nil tax jurisdiction resident “Nominee” director as part of the Corporate structure & achieve (b) by setting up a Private Foundation to own/hold the shares of the Company.


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


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