Accounting records and cash injections

[mnschwarz]

Hey guys,
I'm just curious how you would show (on accounting records) an injection of cash from a personal source to your offshore corporate structure? I realise most of the jurisdictions we use (including my own) don't require accounting records but I keep them because I've been asked a few times by banks, exchanges etc when opening accounts.

In the past I did it as a loan to the company but it's a pain supporting that with documentation and having to eventually repay the loan etc etc. I just wanna dump money in the corporate account and be able to show it semi-legitimately on an accounting record.

Would you just make up some random form of income? Interested to hear how you'd go about it. Cheers!

 

[Spinat]

So far I have used a few EU entities I created where I transfer the‌ money to, then from these entities to the offshore company. After one year I let‍ the EU entities run out and be liquidated. This is not an optimal solution but⁠ it has been working for a some years so far.

However, I'm in the same⁤ situation as you know and consulting some professionals next week in order to get their⁣ opinion about what and how to do this stuff.

 

[anticfc]

No need to make fake sales - this is just an increase in paid in‌ capital. You can emit more shares to yourself, but you don't have to.

Some examples to make this more clear.

 

[Spinat]

don't get it. Is this⁠ just to spam your link?

 

[anticfc]

? Isn't this an accounting question?

 

[happyjohn]

I'm in the same︂ situation and looking into a UK company that will send the money to the local︃ corporate account! as far as I asked my tax advisor he told me that is︄ possible and legal! Now I just need to anonymize the UK corp which I seem︅ to have found a solution for now.

 

[Stefano3323]

I think the increase in paid up capital should work. You are currently owner of‌ your company and you have i.e. 10,000 shares. This shares most likely have a par-value‍ of $0.01 each. If you ask the incorporation agent to increase the share amount to⁠ i.e. 20,000 you will be able to deposit $1,000 in the company. And in accounting⁤ the movements would be 'cash in the bank' and 'owner's equity'.