Best low tax jurisdiction company+corp bank acc

[sp2021]

Hello everyone,

I would like to enquire as to the following:

What is the best corporate set up that would allow for hassle free banking for a business that would mainly serve one client, who is a crypto exchange? The service provided would be business development and the exchange may eventually relocate to an offshore jurisdiction (they're in the EU at the moment). Sole proprietorship is not an option as this is a partnership. EMI do not interest me, I would like a normal corporate bank account to go with the company.

Essentially, I am looking to minimize taxes and minimize admin costs associated with all the usual, such as accounting, filing, this fee, that fee, etc. Also, minimize the time spent on admin and accounting.

The business is 100% legit and the customer is 100% legit - no shady business. I am simply looking to optimize on tax, on time spent managing and lower admin costs. I thought of a UAE FZE, like SHAMS, but the banking issues has got me reconsidering. Is it true that it will be very challenging to open a bank account for a SHAMS entity in the UAE, even with a residence permit? What about abroad? Impossible?

Any advice is appreciated.

 

[Martin Everson]

sp2021 said:
What is the best corporate set up that would allow for hassle free banking for a business that would mainly serve one client, who is a crypto exchange?
Click to expand...

The word "crypto" puts your business in high risk category so there won't be any hassle free banking.

sp2021 said:
EMI do not interest me, I would like a normal corporate bank account to go with the company.
Click to expand...

For crypto related activity and depending where you live you may not have much choices.

sp2021 said:
Essentially, I am looking to minimize taxes and minimize admin costs associated with all the usual, such as accounting, filing, this fee, that fee, etc. Also, minimize the time spent on admin and accounting.
Click to expand...

Where are you based? If you have strong CFC rules in your country then an offshore setup will not help you tax wise unless its all managed at arms distance or you change residency.


Maybe @Fred can help with UAE side.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Gediminas]

sp2021 said:
Hello everyone,

I would like to enquire as to the following:

What is the best corporate set up that would allow for hassle free banking for a business that would mainly serve one client, who is a crypto exchange? The service provided would be business development and the exchange may eventually relocate to an offshore jurisdiction (they're in the EU at the moment). Sole proprietorship is not an option as this is a partnership. EMI do not interest me, I would like a normal corporate bank account to go with the company.

Essentially, I am looking to minimize taxes and minimize admin costs associated with all the usual, such as accounting, filing, this fee, that fee, etc. Also, minimize the time spent on admin and accounting.

The business is 100% legit and the customer is 100% legit - no shady business. I am simply looking to optimize on tax, on time spent managing and lower admin costs. I thought of a UAE FZE, like SHAMS, but the banking issues has got me reconsidering. Is it true that it will be very challenging to open a bank account for a SHAMS entity in the UAE, even with a residence permit? What about abroad? Impossible?

Any advice is appreciated.
Click to expand...

Hey,

To open a bank account (not EMI) for virtual currency exchange is possible either if you have a fully licensed company in Europe or UAE, or if you apply for some offshore banks like Pacific Private Bank.

From Europe, you might consider Lithuanian company (with crypto authorization) and bank account in Lithuanian specialized bank (not EMI, but also a bit different from “street bank” as well). But such a company should have accounting books, it is also subject to taxes (depends on the structuring model).

In UAE you also might set up a fully licensed crypto exchange. UAE Securities & Commodities authority started to issue exchange licenses just recently. Company with such activities might be established in DMCC (they already have special activities for crypto exchanges). Currently, it is possible to open bank accounts for such companies in Swiss banks and in rare cases in local UAE banks, but there are undergoing discussions between DMCC and UAE local banks, so it is only a matter of time when they will start opening accounts for virtual asset related companies. But UAE companies with a license would cost significantly, plus DMCC requires annual statements and an audit.

SHAMS company (as you considered) is not an option at all. Currently, SHAMS does not have approved virtual currency-related activities, there is no even a small chance to open a local bank account for SHAMS company engaged in crypto exchange activities. Plus such activities overall are not allowed.

I hope this helps.

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[sp2021]

Gediminas said:
Hey,

To open a bank account (not EMI) for virtual currency exchange is possible either if you have a fully licensed company in Europe or UAE, or if you apply for some offshore banks like Pacific Private Bank.

From Europe, you might consider Lithuanian company (with crypto authorization) and bank account in Lithuanian specialized bank (not EMI, but also a bit different from “street bank” as well). But such a company should have accounting books, it is also subject to taxes (depends on the structuring model).

In UAE you also might set up a fully licensed crypto exchange. UAE Securities & Commodities authority started to issue exchange licenses just recently. Company with such activities might be established in DMCC (they already have special activities for crypto exchanges). Currently, it is possible to open bank accounts for such companies in Swiss banks and in rare cases in local UAE banks, but there are undergoing discussions between DMCC and UAE local banks, so it is only a matter of time when they will start opening accounts for virtual asset related companies. But UAE companies with a license would cost significantly, plus DMCC requires annual statements and an audit.

SHAMS company (as you considered) is not an option at all. Currently, SHAMS does not have approved virtual currency-related activities, there is no even a small chance to open a local bank account for SHAMS company engaged in crypto exchange activities. Plus such activities overall are not allowed.

I hope this helps.
Click to expand...

Thanks for the detailed answer. Just to make it clear, my company is not directly involved in crypto exchange activity, it would simply do marketing and bizdev for an exchange, such as running digital campaigns, advertising etc. I dont know if that qualifies it as a crypto business per se or rather a marketing business? For example, a marketing agency doing work for banking client doesn't make it a financial services company, right? Of course, I don't know how authorities or banks would look at it, but I wanted to clarify this point.

 

[sp2021]

Martin Everson said:
The word "crypto" puts your business in high risk category so there won't be any hassle free banking.



For crypto related activity and depending where you live you may not have much choices.



Where are you based? If you have strong CFC rules in your country then an offshore setup will not help you tax wise unless its all managed at arms distance or you change residency.


Maybe @Fred can help with UAE side.
Click to expand...

Hello, Martin. Just to make it clear, my company is not directly involved in crypto exchange activity, it would do marketing and bizdev for an exchange, such as running digital campaigns, advertising etc. I would not think that qualifies it as a crypto business per se but rather a marketing business. For example, a marketing agency doing work for banking client doesn't make it a financial services company. However, there would be this one client mainly in the beginning, which is an exchange - so I don't know how a bank or a regulator would look at this.

 

[Martin Everson]

sp2021 said:
Thanks for the detailed answer. Just to make it clear, my company is not directly involved in crypto exchange activity, it would simply do marketing and bizdev for an exchange, such as running digital campaigns, advertising etc. I dont know if that qualifies it as a crypto business per se or rather a marketing business?
Click to expand...

Banks do not care. Once word "crypto" appears that is it.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Gediminas]

sp2021 said:
EMI do not interest me
Click to expand...

Can you tell me why is so? There are very good financial institutions for that. Since your business is related to crypto, you want to have an account with a financial institution that is focused on crypto activities. With retail banks, you will face troubles, slow speed, and high fees.

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https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[sp2021]

Gediminas said:
Can you tell me why is so? There are very good financial institutions for that. Since your business is related to crypto, you want to have an account with a financial institution that is focused on crypto activities. With retail banks, you will face troubles, slow speed, and high fees.
Click to expand...

Well, maybe I'm old school and frankly I don't know much about them. I also have doubts about their stability and protection of funds, etc. I suppose I'd be open to learn more and if it makes sense, then maybe I'd consider them.

 

[Gediminas]

sp2021 said:
Well, maybe I'm old school and frankly I don't know much about them. I also have doubts about their stability and protection of funds, etc. I suppose I'd be open to learn more and if it makes sense, then maybe I'd consider them.
Click to expand...

Send me an email and let's schedule a call. I could give you more details on that, and then maybe we would help you both with company registration and bank account opening. 😉

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https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[uplana]

Martin Everson said:
The word "crypto" puts your business in high risk category so there won't be any hassle free banking.
Click to expand...

there must be banks willing to take on the business, I mean Swiss, Seychelles and many more are full of crypto firms and they all found a way to bank safely for now.

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[PhantomOf ThePits]

sp2021 said:
Hello everyone,

I would like to enquire as to the following:

What is the best corporate set up that would allow for hassle free banking for a business that would mainly serve one client, who is a crypto exchange? The service provided would be business development and the exchange may eventually relocate to an offshore jurisdiction (they're in the EU at the moment). Sole proprietorship is not an option as this is a partnership. EMI do not interest me, I would like a normal corporate bank account to go with the company.

Essentially, I am looking to minimize taxes and minimize admin costs associated with all the usual, such as accounting, filing, this fee, that fee, etc. Also, minimize the time spent on admin and accounting.

The business is 100% legit and the customer is 100% legit - no shady business. I am simply looking to optimize on tax, on time spent managing and lower admin costs. I thought of a UAE FZE, like SHAMS, but the banking issues has got me reconsidering. Is it true that it will be very challenging to open a bank account for a SHAMS entity in the UAE, even with a residence permit? What about abroad? Impossible?

Any advice is appreciated.
Click to expand...

Look for example at Silvergate or Signature bank if that would be an option for you.
They have many crypto exchanges/hedge funds and such as clients.

 

[Martin Everson]

uplana said:
there must be banks willing to take on the business, I mean Swiss, Seychelles and many more are full of crypto firms and they all found a way to bank safely for now.
Click to expand...

He never said where he is based? Also look at the crypto related activity he said below:

sp2021 said:
Hello, Martin. Just to make it clear, my company is not directly involved in crypto exchange activity, it would do marketing and bizdev for an exchange, such as running digital campaigns, advertising etc.
Click to expand...

Promoters of scam unregulated exchanges.....sorry marketers and bizdevs of crypto exchanges are probably the last customers I want if I owned a bank. However important factors such as is the exchange regulated and where is the promoter resident and which countries is he marketing too matter. A coinbase affiliate is far more credible than marketing some exchange based on a pacific atol with no airport.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[BrianTan]

sp2021 said:
EMI do not interest me
Click to expand...

You may want to consider that option cause most banks will avoid high-risk businesses like yours. Besides, I think EMI is good alternative, you can get an account number, sort code, and debit card. I personally use EMI for any significant cash transfer in my business, so far so good.

 

[Fulton Abraham Sanchez]

Nevis company and Antigua bank account. There is a bank in Antigua that will help once the company is open.

Last edited by a moderator: Jun 29, 2021

 

[uplana]

Fulton Abraham Sanchez said:
Nevis company and Antigua bank account. There is a bank in Antigua that will help once the company is open.
Click to expand...

does it require an introducer?

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[Fulton Abraham Sanchez]

uplana said:
does it require an introducer?
Click to expand...

yes, it does.