Currency trading is one the most popular activities for Offshore companies
What seems to work for most is you set up an International Business Company (“IBC”), in a country that does not require details of shareholders/s owners of the company to be publicly filed, with a Corporate “Nominee” Director and Shareholder as part of the structure. That way, even if details of the director/shareholder of the company had to be revealed,the name of the underlying beneficial owner of the company still wouldn’t appear.
The nominee is arranged or would be provided by OCI and as part of the incorporation package you receive a number of (private) documents which note we hold the shares and directorship for you as nominee subject to your instructions. These agreements are legally enforceable and thus protect your underlying ownership of the company. We also supply pre-signed transfer documents enabling you to transfer the shares/directorship to yourself at anytime. (We can also supply you if required with a board resolution preventing us from changing bank account signatories or shareholders/directors without your written consent).
In terms of practicalities how it works is this:
- The IBC gets set up with a Nominee Director/Shareholder
- The underlying beneficial owner of the company is appointed, in writing, as Financial Consultant (egForex Trading Manager)
- As part of his/her brief the owner is given the authority to trade certain markets/accounts on behalf of the company, reporting to the Director
- The IBC director completes the Brokerage Account Opening forms
- A Bank and/or Trading account is opened with either the owner (as Consultant/Trading Manager) nominated as the signatory or given the internet banking codes or other authority to be able to make/place trades
- The IBC starts trading with the placing of all trades (buy and sell orders) organized by/authorized by the owner who, in effect, retains controlof the funds.
- If for legal reasons the company owner doesn’t want his or her name to appear as signatory on the IBC bank or brokerage account then arrangements can be put in place for the Nominee Director to undertake this role (acting on the instructions of the company owner)
Provided the IBC is (and is seen to be) managed and controlled from Offshore this system should:
- Give you access to a wide range of brokerage houses and trading platforms
- Enable the profit to be earned by the IBC “Offshore” potentially tax free whilst at the same time affording the underlying owner of the company the ability to oversee the company’s finances and trading endeavours.
Ideally for this structure to have maximum chance of financial success the shareholder of the IBC would be an Offshore Trust or Private Interest Foundation.
For more information on this topic (or if you would like to know more about How We Can Help You) please Contact Us
This is a generic example of how an offshore corporate entity can or might be used. Local laws may impact on your situation. Hence we would recommend that you seek local legal and/or tax advice before establishing such an entity