Off Shore Companies & Information?

[CAKEBRAINS]

Hello,

I am a turkish resident looking to open an off-shore company,

When applying for Off-Shore company i have supplied my Turkish Residency Permit & Turkish Address, Let's assume i open an account in the BVI, Do the banks know which country i'm a citizen in?

Let's assume i am a UK citizen but i live in turkey as a resident, If i open the company using my turkish details in the BVI would the UK ever find out through FATCA/CRS ?

Obviously i would pay all the necessary taxes and this is not a TAX Evasion question, I just want to know if i will have any issues within the country of citizenship?

My company would have a bank account in the BVI and then all my income would be sent to Turkey, I will pay the necessary turkish taxes but don't want to pay taxes twice.

 

[CAKEBRAINS]

Are there any locations i could also benefit from a PayPal account to receive money as PayPal no longer works in turkey

 

[Sols]

CAKEBRAINS said:
When applying for Off-Shore company i have supplied my Turkish Residency Permit & Turkish Address, Let's assume i open an account in the BVI, Do the banks know which country i'm a citizen in?
Click to expand...

Yes, the bank will need to verify your identity as well (passport, proof of address, bank reference, and other documents). If you have multiple citizenships, you are required to declare all citizenships.

CAKEBRAINS said:
Let's assume i am a UK citizen but i live in turkey as a resident, If i open the company using my turkish details in the BVI would the UK ever find out through FATCA/CRS ?
Click to expand...

While reporting under CRS is usually done based on residence, the bank is free to report you by citizenship as well (i.e. to both UK and Turkey).

CAKEBRAINS said:
Obviously i would pay all the necessary taxes and this is not a TAX Evasion question, I just want to know if i will have any issues within the country of citizenship?
Click to expand...

As long as you don't live in the second country, the reports shouldn't cause any problems. If they look at the report, they'd see it's for a non-resident. I suppose they might hold on to the report and bring them up in the future if you move there, so keep your affairs in order.

CAKEBRAINS said:
Are there any locations i could also benefit from a PayPal account to receive money as PayPal no longer works in turkey
Click to expand...

It won't work with most typical offshore locations either. PayPal is very, very difficult to get working for companies in BVI and such jurisdictions, unless you're a genuinely local company with operations/dedicated office there.

EU/Europe is much easier and you can probably open bank/EMI account quite easily. Normally I'd suggest Cyprus but it might not work in this case and if you want to avoid UK, UK LLP is probably not a good choice either. Malta might be your best bet.

Hong Kong and Singapore could also work if you bank with for example TransferWise (SG), Neat, Airwallex, or Currenxie and if PayPal can settle into those.

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This is the probably the answer to your question.

 

[CAKEBRAINS]

Hi Sols,

Sols said:
As long as you don't live in the second country, the reports shouldn't cause any problems. If they look at the report, they'd see it's for a non-resident. I suppose they might hold on to the report and bring them up in the future if you move there, so keep your affairs in order.
Click to expand...

Currently i'm living in turkey, Have Residency, Bank account, Tax ID in Turkey, Property there etc but my country of citizenship is not Turkey.

I'm just worried that my home country will demand some tax when i do not work there, I've checked and it's all to do where you work and where the "Brains of the company are" so i should be fine.

If i travel to my home country for around 30 days per year, Will they see this as staying in my home country and impose tax laws? I wouldn't be working from home but during holiday periods i have family at home and normally travel home to be with them for christmas and birthdays and special events.

 

[CAKEBRAINS]

Hi,

Also, My main concern for this is to obtain PayPal account so i can sell products online. Not to avoid taxes or evade taxes, However i would prefer to not pay any more taxes than i currently do.

 

[tacokai]

CAKEBRAINS said:
Hi,

Also, My main concern for this is to obtain PayPal account so i can sell products online. Not to avoid taxes or evade taxes, However i would prefer to not pay any more taxes than i currently do.
Click to expand...

you can find great ways inside mentor group to setup dark paypal accounts.. I don't know if it will work for you but search on google for stealth accounts if you don't want to join the elite.

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[Sols]

CAKEBRAINS said:
If i travel to my home country for around 30 days per year, Will they see this as staying in my home country and impose tax laws? I wouldn't be working from home but during holiday periods i have family at home and normally travel home to be with them for christmas and birthdays and special events.
Click to expand...

That's normally fine as long as those are truly your only ties to that country. Read up on the relevant laws and/or ask a local professional for advice.

CAKEBRAINS said:
Also, My main concern for this is to obtain PayPal account so i can sell products online. Not to avoid taxes or evade taxes, However i would prefer to not pay any more taxes than i currently do.
Click to expand...

Then BVI is most likely not the right choice for reasons stated earlier.

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This is the probably the answer to your question.

 

[CAKEBRAINS]

Stealth accounts won't work when i can process around $1000 per day.

I've been told the only way is to setup a BVI company, Then setup a Georgia Company & Bank account,

Since Georgia can only be opened with a passport or by another company. BVI company is then required.

I can always setup a company in another location to act as an agent, I've explored isle of man but purchasing goods from EU still requires me to pay VAT which i would much prefer not to pay being in Turkey

 

[CaptK]

CAKEBRAINS said:
Stealth accounts won't work when i can process around $1000 per day.

I've been told the only way is to setup a BVI company, Then setup a Georgia Company & Bank account,

Since Georgia can only be opened with a passport or by another company. BVI company is then required.

I can always setup a company in another location to act as an agent, I've explored isle of man but purchasing goods from EU still requires me to pay VAT which i would much prefer not to pay being in Turkey
Click to expand...

You can ask your seller not to charge VAT if the product is leaving the EU or keep the receipts and claim it back.
I ship high end luxury goods to Middle East and Africa from the UK. Some are happy to discount the VAT so long as they send it to the overseas client themselves.
Alternatively accumulate your receipts and refund in bulk.

 

[CAKEBRAINS]

There is no physical products with my business, Only services.

Website Hosting, Game Server Hosting, Dedicated Servers

No physical products. Renting and then reselling.

 

[CaptK]

Set up the offshore business in somewhere like the UAE and the franchise it to your local company. After expense split the profit 70/30 pay tax on the 30 and leave the 70 to accumulate.
When you are ready to move there then you can cash in.

 

[CAKEBRAINS]

Dubai would be a great option for me if they accepted anything other than a passport. I'm trying to find an option for the following requirements.

Must be a 0% Tax country so i can benefit from having to pay no more tax than i currently pay on income / corporation tax etc.
Must be able to be opened with Turkish Residency Card / National ID
Must be able to accomodate PayPal.

The only option i have currently is to open a BVI company with Turkish Residency Card and then open a company and bank account in Georgia using the BVI company.

UAE Requires, Passport, Proof of Address, Bank reference etc

Last edited: Sep 19, 2020

 

[CaptK]

Then you can replicate this in Mauritius.