Trading Programs & When to Incorporate Offshore

Are you involved in a Trading Program (eg Trading Bank/Negotiable Instruments) or a Private Placement Program and expecting a big pay day soon?


If so there are certain things you need to be aware of.


Often we are approached by persons looking to set up a tax free Offshore Company and or Tax Free Offshore Bank Account in anticipation of receiving profits from a private placement investment or bank trading program.


The common misapprehension of 99% of such clients is that all they have to do to avoid paying tax at home on such a windfall is to set up an Offshore Company or Bank Account and have the proceeds paid into that.


If you are in this position, and you want to minimize the chances of being taxed in your home county on your profit/windfall, you will need more than just an offshore bank account to receive funds into.




(a) You will need to ensure that any contracts or instruments held or signed entitling you to a payday are sold to, transferred to or assigned at law to your tax free Offshore Company before you become entitled to be paid the profit.


(b) Immediately you become entitled to receive the profit, even if you haven’t received the money yet, it’s probably a taxable event.


Hence if you want to minimize the chances of being taxed at home on the profits of your trading or private placement program you will need to set up a tax free Offshore Company BEFORE you become entitled to the profit.


Depending on where you live (eg if you live in a country which has Controlled Foreign Corporation Laws) it might also be wise to include a tax free Offshore Private Foundation as part of your Corporate structure.


For more information contact me…



Comments are closed.