A Trade Finance Business lends itself well to an Offshore Corporate Structuring Plan. Here’s it can/would work:
- You form a tax free Offshore Company
- 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
- The agreement would provide for the Company to be paid a fee for provision of these services
- The source of the fees would be the contract
- The contract would be signed/closed Offshore by the Company ie in a nil tax environment
- 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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