Investing in an ICO (Initial Coin Offering) is an activity that lends itself well to an Offshore Corporate Structuring Plan.
How it works is:
(a) You incorporate a tax free Offshore Company (“OC”)
(b) You structure the Company in such a way as to ensure that the Company is seen to be managed and controlled from Offshore; This can/will be achieved by via deployment of a tax haven based Nominee Director (which is a service that OCI can/will provide)
(c) Your OC either signs a general investment with the Company doing/launching the ICO or subscribes for shares in the said Company
(d) You advance funds to your OC
(e) The OC then advances funds to the ICO Company
(f) The ICO Company utilizes your money to help develop or market its particular/unique Cryptocoin and in return gives you a Token.
(g) Typically the Token will entitle you to receive a quantity of the ICO Company’s Cryptocoins and/or it will entitle you to a share of the Company’s profits (which are typically paid in Cryptocurrency).
(h) At a certain point in time you will probably want to cash in your Coins (or your share of the ICO’s profits) and exchange same for for hard currency (eg USD/Euro etc). This money would be paid to your OC and banked free of tax
(i) For all intents and purposes the OCs profits are generated in a nil tax environment tax free/offshore (ie provided the OC is structured properly)
(j) If you structure the tax free Offshore Company correctly you should only be liable for tax at home once you draw down money from the OC.
(k) This should enable you, via the power of compounding, to grow your nest egg MUCH faster than you would otherwise had your company been liable to account for Corporate/etc tax each year (eg up to 40%, depending on where you live).
Note if you need to draw on these returns at home (or send hard currency to your IBC) there are several ways to go about this discreetly.
Local laws can have an impact. Hence you should seek local legal/tax/financial advice before committing to set up an Offshore Company for such purposes.
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