How to ensure management activities happen Offshore?

[Velar]

Good day OCT community.

I'm wondering how to legally establish management in an offshore business but am curious to know how exactly.

How does this sound?

1. Assign a nominee director + shareholder
2. Send over proposals pertaining to the management, growth, and development of the business, then ask the nominees to review (and sign off) the documents so my business continues to thrive - thus showing company-related decisions are made in the offshore jurisdiction?

Would this show authorities that key decisions in the management of the company are in fact handled offshore?

My work on the business onshore would more general day-to-day tasks like sales/marketing (through social media). Any structure, development, or feature additions to the business would go through the nom director and shareholder.

 

[boomy]

Actually it is very easy and the rules are clear.

You need to find a real office, employ staff and register your company on this address.

Furthermore you need to appoint a director and other management that may be required, you need to have a phone line, electricity and everything else that a company need to operate from a location. Your website need to be managed from that address.

All this is called "substance" !

All in all depending on where you set this up you look at establishing costs of 10 - 25,000 euro for the substance, now you need to add the costs for the registration of the company which most often is a fraction of the rest.

The example apply for Cyprus.

 

[Sols]

Velar said:
I'm wondering how to legally establish management in an offshore business but am curious to know how exactly.

How does this sound?

1. Assign a nominee director + shareholder
2. Send over proposals pertaining to the management, growth, and development of the business, then ask the nominees to review (and sign off) the documents so my business continues to thrive - thus showing company-related decisions are made in the offshore jurisdiction?

Would this show authorities that key decisions in the management of the company are in fact handled offshore?
Click to expand...

Make sure that nominee directors the sole signatories on the bank accounts. That way legal and financial control, on paper, is with them.

However, it ultimately depends entirely on how aggressive your local tax office is. If you aren't being poked and prodded too much, this can and often does work.

But if the tax office suspect foul play, is desperate for cash, or for whatever reasons is looking closely at you, you may need to defend the structure in court. You get into spirit of the law vs. letter of the law.

Velar said:
My work on the business onshore would more general day-to-day tasks like sales/marketing (through social media). Any structure, development, or feature additions to the business would go through the nom director and shareholder.
Click to expand...

Pay yourself a fair salary and pay income tax on that salary. This helps increase the legitimacy of the structure. Pay the rest as dividends and pay whatever capital gains or other tax applies on that income.

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This is the probably the answer to your question.