How To Use a Tax Free Offshore Company To Trade Futures & Options

Whenever there is a sudden downturn in the world economy (such as is occurring now thanks to the Corona virus) there is the potential to make a fortune on the Futures market.


If you’re a dedicated Futures Trader (or if you are looking to get in to the field) you’ll be pleased to know Futures and Options Trading are activities which lend themselves well to an Offshore Corporate Structuring Plan.


To summarise how it would work is:

  • You set up a zero tax International Business Company (“IBC”)
  • The IBC opens an account with a Broker
  • The Company is set up with a (nil tax jurisdiction based) “Nominee” director
  • You are appointed as the IBC’s authorised trader or Trading Manager (ie you are given the 100% authority to place the buy and sell orders on behalf of the company)
  • All legal contracts/agreements are signed, and all board meetings take place Offshore ie in the nil tax jurisdiction wherein the Nominee Director is based. The director ratifies all trades placed by you on a monthly basis.
  • For all intents and purposes the IBCs trading profits are generated by calls made ultimately by the Nominee Director in a nil tax environment tax free/offshore
  • 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 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 you could use an anonymous ATM or Debit/VISA card to withdraw your wages from an Auto Tele Machine
  • 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.


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.


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