How do I open an offshore bank account for a new business?

[Christian9]

Hello,

I am developing a webapp that will be available in all countries. I am based in Australia myself, but this site doesnt really have anything to do with Australia nor do I expect Australia to be any kind of substantial revenue.

I have not yet incorporated anywhere and am looking at places to best incorporate but it's rather pointless if I am not able to start a bank account for it. Australian banks are closely linked with the government and seemingly don't do anything remotely interesting such as supporting BVI, Cayman Islands etc. (And I like the idea of diversifying out of Aus anyway).

Some points that may or may not be relevant

• I am able to get a British passport
• I have a legitimate business in Australia with bank account etc
• My agenda isnt to hide money, but equally, just because my personal nationality is Australian, I don't see that the company need be

I would be looking to put a deposit in of lets say around $30-50k USD. I would be looking at around min. of $100k USD in the first year.

I know not quite offshore, but I like the idea of incorporating in Switzerland although the requirement to have a director as resident makes that perhaps difficult. I still do wonder though if I could start a swiss bank account with incorporation elsewhere?

I am not really interested in the neobanks and would prefer an actual traditional bank.

Any thoughts on possibilities?

Thanks in advance,
Christian

 

[daniels27]

I have been there. Almost all of it. Just sitting on the other side of the globe. If you want it legal

• incorporate in Switzerland
• register your Swiss company with ASIC
• open a bank account in Switzerland and Australia
• pay taxes in Australia, better with a private letter ruling from Switzerland

It does not make much sense but it is possible and legal. You will probably end up paying same or more taxes as you would in Australia.

You just need a nominee director in Switzerland, it is not too expensive. Just be sure to get a private letter ruling to pay taxes in Australia. You can pay them in Switzerland, but it will get you into troubles at some point. The Swiss will even release you from the Swiss tax obligation if the company is not managed from there.

Just for your information, in Australia you cannot open retail bank accouts without ASIC registration, for which you need an office with business hours. I tried this in the past, but the ABN is not enough. Once, you have the ASIC registration, you can open your bank accounts anywhere.

Christian9 said:
I still do wonder though if I could start a swiss bank account with incorporation elsewhere?
Click to expand...

Yes, unlike Australia, this is possible in Switzerland. You won't have many banks to chose from, but depending on the case, they may be more or less inclined to onboard you. PostFinance should be possible for all neighbouring countries.

Last edited: Mar 28, 2024

 

[sebastian]

As long as you live in Australia you have to pay taxes there! Otherwise you are entering into a shady company setup where you may slip through the Australian tax office for now but later they will come after you.

 

[Christian9]

sebastian said:
As long as you live in Australia you have to pay taxes there! Otherwise you are entering into a shady company setup where you may slip through the Australian tax office for now but later they will come after you.
Click to expand...

I feel like surely it's not really that black and white otherwise not really understanding this site. Of course, I don't know for sure

Appreciate that on day 1 it's just me so I get it but in let's say a few months the company employs a couple of dev's in the UK and there's another director / shareholder from wherever then not too sure why it would be Australian.

daniels27 said:
I have been there. Almost all of it. Just sitting on the other side of the globe. If you want it legal

• incorporate in Switzerland
• register your Swiss company with ASIC
• open a bank account in Switzerland and Australia
• pay taxes in Australia, better with a private letter ruling from Switzerland

It does not make much sense but it is possible and legal. You will probably end up paying same or more taxes as you would in Australia.

You just need a nominee director in Switzerland, it is not too expensive. Just be sure to get a private letter ruling to pay taxes in Australia. You can pay them in Switzerland, but it will get you into troubles at some point. The Swiss will even release you from the Swiss tax obligation if the company is not managed from there.

Just for your information, in Australia you cannot open retail bank accouts without ASIC registration, for which you need an office with business hours. I tried this in the past, but the ABN is not enough. Once, you have the ASIC registration, you can open your bank accounts anywhere.


Yes, unlike Australia, this is possible in Switzerland. You won't have many banks to chose from, but depending on the case, they may be more or less inclined to onboard you. PostFinance should be possible for all neighbouring countries.
Click to expand...

Thanks - very helpful, I just wonder about doing this in reverse to avoid Australia? I mentioned a scenario above about having another shareholder or 2, and some employees - I appreciate that right now i am the sole director and that I am Australian but in the future it might be 50% me 50% someone else who resides in a different country.

I should add, that I would draw a wage in which of course I'd pay Australian tax - I'm more thinking about the profits that sit in the company that haven't touched Australia in any way

Last edited: Mar 28, 2024

 

[Sols]

It sounds like you have a pretty good business ahead of you. Why risk it all by going offshore? Just form a company in Australia. If you don't like Australian taxes, don't live in Australia. With digital nomad visas, entrepreneurship visas, and other schemes, you have a lot of options out there in the world.

Christian9 said:
I feel like surely it's not really that black and white otherwise not really understanding this site. Of course, I don't know for sure
Click to expand...

It really is.

https://www.ato.gov.au/businesses-a...l-tax-for-business/working-out-your-residency

Companies​

A company is a resident of Australia if:

• it is incorporated in Australia, or
• although not incorporated in Australia, it carries on business in Australia and has either its
  • central management and control in Australia, or
  • voting power controlled by shareholders who are residents of Australia.

Click to expand...

Christian9 said:
Appreciate that on day 1 it's just me so I get it but in let's say a few months the company employs a couple of dev's in the UK and there's another director / shareholder from wherever then not too sure why it would be Australian.
Click to expand...

Then the company might be tax resident in both Australia and UK/wherever the other director is resident.

Toggle signature
This is the probably the answer to your question.

 

[sebastian]

Sols said:
With digital nomad visas, entrepreneurship visas, and other schemes, you have a lot of options out there in the world.
Click to expand...

That's what I try to say.

If you have no ties to Australia, then move away from there and only come back for vacations or however you can manage so you won't be liable for taxes there. There are many options available to you, and that's why this forum exists””to highlight the many possibilities that many people don't even consider.

 

[Fulton Abraham Sanchez]

For your setup, Cayman or BVI mostly accept clients with companies there.

Consider banking options in the Bahamas, could be beneficial for your needs.

Christian9 said:
Hello,

I am developing a webapp that will be available in all countries. I am based in Australia myself, but this site doesnt really have anything to do with Australia nor do I expect Australia to be any kind of substantial revenue.

I have not yet incorporated anywhere and am looking at places to best incorporate but it's rather pointless if I am not able to start a bank account for it. Australian banks are closely linked with the government and seemingly don't do anything remotely interesting such as supporting BVI, Cayman Islands etc. (And I like the idea of diversifying out of Aus anyway).

Some points that may or may not be relevant

• I am able to get a British passport
• I have a legitimate business in Australia with bank account etc
• My agenda isnt to hide money, but equally, just because my personal nationality is Australian, I don't see that the company need be

I would be looking to put a deposit in of lets say around $30-50k USD. I would be looking at around min. of $100k USD in the first year.

I know not quite offshore, but I like the idea of incorporating in Switzerland although the requirement to have a director as resident makes that perhaps difficult. I still do wonder though if I could start a swiss bank account with incorporation elsewhere?

I am not really interested in the neobanks and would prefer an actual traditional bank.

Any thoughts on possibilities?

Thanks in advance,
Christian
Click to expand...

 

[uranium]

Dubai is best for you
Move there so your new residency is UAE. Pay 9% when you reach 100k income in USD.
Setup stripe to accept credit card payments and Wio bank for wire transfers.

 

[JohnLocke]

uranium said:
Dubai is best for you
Move there so your new residency is UAE. Pay 9% when you reach 100k income in USD.
Setup stripe to accept credit card payments and Wio bank for wire transfers.
Click to expand...

If that still works without all the troubles with the taxes there it sounds indeed like the best suggested solution here.

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[uranium]

JohnLocke said:
If that still works without all the troubles with the taxes there it sounds indeed like the best suggested solution here.
Click to expand...

The only thing that works, I have looked in other jurisdictions but couldn't find any alternatives to Dubai.
Taxes are at 9%. It is just that some folks are looking for ways around it and wasting time.
I have been telling them to get accounting done but they still want to wait.
Result is same ,you will pay 9% taxes and 0% personal income tax with real bank account, No EMI.
Fred was right from the beginning.