CRS Report Nominee Company

[MBOffshore]

I have found multiple posts about people saying if you use a service for founding a company with a nominee you still can get in trouble with crs in your local country, is this correct?

So the only solution is to move to the company related country OR open a company using darks?

 

[Sols]

CRS doesn't apply to companies or company registers. CRS is an onus on banks and other financial institutions to report data to the beneficiaries' home countries.

Nominees do not change your role as UBO (Ultimate Beneficial Owner).

Avoiding CRS comes down to three options:

1. Stop being UBO, through certain trust/foundation like arrangements. This is legal, but costly and complicated.
2. Use synthetic, stolen, or purchased identities (darks and the like). This is obviously illegal and can cost you dearly (fraud charges, frozen funds, seized assets).
3. Non-CRS banks. Not many options left that most people would consider safe. US is one, but then you need to be mindful of FATCA instead.

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This is the probably the answer to your question.

 

[MBOffshore]

So if some online service offers company foundation with a nominee, what is the point of it? Is this just a marketing move to attract customers? What if I am using an EMI like Advcash with this founded company? I still run into problems for tax reporting because I am UBO?

 

[Sols]

MBOffshore said:
So if some online service offers company foundation with a nominee, what is the point of it?
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Nominees can in some cases be used to establish a soft permanent establishment or tax residence, which can serve a purpose in some forms of tax planning. For example, by appointing local directors to an IOM or Cyprus company, the company becomes tax resident there. But it can also be tax resident somewhere else simultaneously. It's really complicated and best avoided unless you have deep pockets to set up correctly.

Nominee directors can sometimes help increase chance of success of opening a bank account.

MBOffshore said:
Is this just a marketing move to attract customers?
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In many cases, it's a useless service upsold to clueless customers.

MBOffshore said:
What if I am using an EMI like Advcash with this founded company? I still run into problems for tax reporting because I am UBO?
Click to expand...

Yes. If not now, then tomorrow. Some EMIs are not participating in CRS yet but it's only a matter f time.

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This is the probably the answer to your question.

 

[DavidS]

Sols said:
CRS doesn't apply to companies or company registers. CRS is an onus on banks and other financial institutions to report data to the beneficiaries' home countries.

Nominees do not change your role as UBO (Ultimate Beneficial Owner).

Avoiding CRS comes down to three options:

1. Stop being UBO, through certain trust/foundation like arrangements. This is legal, but costly and complicated.
2. Use synthetic, stolen, or purchased identities (darks and the like). This is obviously illegal and can cost you dearly (fraud charges, frozen funds, seized assets).
3. Non-CRS banks. Not many options left that most people would consider safe. US is one, but then you need to be mindful of FATCA instead.

Click to expand...

Which options are these?

Also, what about option of getting another residency and reporting that to banks and institutions instead of your actual one?