Best Jurisdiction for Offshore Crypto Company (Indonesian Citizen)

[Gigaburner]

I'm exploring the idea of setting up an offshore company mainly to hold my crypto assets. I'd also like the company to have the ability to open accounts with platforms like Kraken, Binance, and IBKR. I don't plan to trade frequently””maybe just a few times a year””but I want everything set up properly in case I need to.

I'm an Indonesian citizen and currently reside in Indonesia. I've heard that setting up a company in the British Virgin Islands can make it difficult to open a bank account, especially when crypto is involved. Because of that, I'm trying to figure out which jurisdictions are more crypto-friendly and practical for someone in my situation.

Ideally, I'm looking for a setup that's relatively straightforward, cost-effective, and won't cause too many compliance or banking headaches down the line. Any advice or suggestions would be greatly appreciated.

 

[uplana]

You could setup a Malta, Cyprus or UK LTD depending on what other goals you‌ have and open a Wise account for the company to get the money from kraken‍ og Binance.

 

[Protect Your Wealth]

You could set up a company in Panama with a bank account in Towerbank. I‌ suggest Towerbank in particular because it's crypto-friendly. Otherwise a UAE company could do the trick‍ as well (no FZE/FZCO, it's difficult to open bank accounts)

 

[Fred]

Hi @Gigaburner ,

you should make sure that you incorporate in a jurisdiction which is‌ not too regulated and at the same time you don't face any problems opening fully‍ fledged transactional Retail Bank Accounts and not end up on problematic EMI banking.

I don't⁠ see a FZCO/FZE Company Formation in Dubai, UAE as a fit as you have nowadays⁤ Accounting and Audit requirements and even for normal Business the Accountants don't know yet what's⁣ acceptable for the UAE Tax Authority and what's not - avoid.

I agree with @Protect Your Wealth that Panama as a Offshore Jurisdiction makes sense as you have 0% Corporate⁢ Tax, No Audit and No Accounting requirements and at the same time you don't have︀ any Public Company Registry if structured properly by a Service Provider.

We provide 0% Tax︁ Panama Offshore Company without Audit and Accounting requirements together with Hong Kong Business Bank Account︂ and Hong Kong Crypto Exchange Account together with a Crypto Cash Out Scheme - all︃ done quick and remote.

With this Setup you do whatever you want to do in︄ the Crypto Space and whatever you want to Cash Out for either Living Expenses, Lifestyle︅ Money or Investments - you can take out in Fiat and either spend or invest︆ further.

You can build once familiar with the Setup and Panama as a Jurisdiction substance︇ and deepen the Setup with opening local Panama Personal Bank Account and even take 0%︈ Tax Residence in Panama - all depending on your Volume and Wealth - what makes︉ sense for someone with 1M$ doesn't make sense for someone with 10M$ etc.

In regards︊ to Towerbank mentioned earlier here - straightforward Personal Account Opening Process with Panama ID Card,︋ Business Account is lengthy and a lot of Compliance (that's why we prefer Hong Kong)︌ - remote Account Opening without Panama ID Card is possible if you bring 6 figures︍ $$$ with you ready to invest.

Investment Solutions with Towerbank are solid - International ETF's,︎ Stocks tradable at average Bank Rates and custodied with EUROCLEAR in Belgium which is next️ to CLEARSTREAM in Luxembourg one of the biggest Custodians.

Crypto On-Off-Ramping possible at least in‌ USD to Customers Bank which is right now the biggest and pretty much only Official‍ Crypto Exchange Correspondent Bank in the US (another reason why we have chosen Hong Kong⁠ so far) which can be a risk what we learned in the past with Silvergate⁤ Bank and Signature Bank.

 

[Gigaburner]

As far as I know, none of these⁠ jurisdictions are tax-free, right? So any earnings sent back to the company would be taxed.⁤

 

[Gigaburner]

Roughly how⁠ much does it cost to set up a company in Panama, and what are the⁤ annual maintenance fees like?

 

[Fred]

Correct.

0% Tax PANAMA Offshore Company⁠ all-inclusive (Nominee Director inclusive)

0% Tax Panama Offshore Company, Hong Kong Bank Account, Hong Kong⁤ Crypto Exchange Account

Setup Cost: 6,300 EUR
Renewal Cost: 3,000 EUR

You find cheaper options⁣ on Google - however no Banking included - that's what matters - you get what⁢ you pay for.

 

[Meta]

Hey, any︃ reasons to do that? I don't really know much about Indonesian laws, but don't you︄ have some absolutely nominal less-than-1% tax on crypto profits? If you trade infrequently and amounts︅ are not too big, just open personal accounts with Kraken, IBKR and maybe some local︆ crypto exchange and, like, be happy?

 

[CEOz]

I am sorry but in your position you⁠ shouldn't write this.
Wise was clearly said No to crypto.

Reference.
https://wise.com/help/articles/2v3OMcg97Z7gObSifJbjsu/understanding-wises-position-on-cryptocurrency

 

[Fred]

WISE has a weird Policy‍ when it comes to Crypto - they allow from regulated Crypto Crypto Exchanges in EU⁠ like Kraken and Bitstamp Withdraws but don't allow Deposits to this Exchanges - this Policy⁤ hasn't changed in the past 7 years - could never figure why they handling Crypto⁣ in this way.

With significant volumes receiving from Exchanges WISE is asking for Source of⁢ Funds - you end up with monkey compliance even if you provide them with all︀ documents - personal latest experience was with just low 6 figures EUR back in 2019.︁

You should definitely choose proper Transactional Retail Banks for significant Amounts of Crypto Cash Out︂ like we give it our clients on hand.

 

[CEOz]

Totally agree, they are weird because employees are geniuses.

But we can︂ not advice to use them, they will freeze the account for years especially for Indonesian︃ citizen, 0% doubt.

I believe that building trust and authority takes long time, but in︄ one minute we can ruin it for the rest of the life.

I speak in︅ general, no one get offended.

 

[Gigaburner]

You’re correct,⁤ but that only applies to registered/local exchanges in Indonesia. If you’re dealing with a small⁣ amount, that should be fine. However, I don’t trust the Indonesian IRS,there’s so much corruption⁢ that I don’t feel comfortable putting large amounts of money or investing through my personal︀ account here.

 

[uplana]

It's obvious you don't use‍ Kraken, Binance, or Wise yourself. It's completely legal to move funds from Kraken to, say,⁠ Wise, it's not against any rules. The issue is the other way around: it's them who refuse to accept it.

 

[CEOz]

Who said I didn't use them?
I used all of them mate, maybe your advice⁤ is good for EU citizen but not for non-EU.

 

[JohnLocke]

Guys, let’s stop attacking each other, and @CEOz, you really need to watch your‌ language if you want to remain here. Work with the community, not against it.

This is just a friendly reminder of the forum guidelines. Let’s keep things constructive.

 

[undercover]

Do you know how reliable towerbank is ?

 

[Fred]

They are‌ OK for USD and EUR Transactions and major Crypto Exchanges like Kraken and Bitstamp have‍ no problems with Panama either - both exchanges have Customers Bank as Correspondent Bank and⁠ onboard Panama Residents to Kraken BVI and Bitstamp BVI entity.

Talking Personal Bank Accounts.

Company Account Openings are difficult to work with like with all other Panama Banks - lengthy⁤ KYC Process etc.

General Speaking Banking in Panama is rather slow and expensive - some⁣ Banks Charge 50$ for a Wire Transfer and 30-50$ to receive a Wire Transfer.

Towerbank has CITIBANK US and CITIBANK UK as Correspondent Bank - we at DLS Offshore established⁢ Banking Options directly with CITIBANK instead using Towerbank.

Faster and Cheaper Payment Processing and at︀ the same time within risk appetite of Panama Offshore Companies.

Towerbank was a good hint︁ for DLS Offshore to go in the right direction to enable Banking for Panama Offshore︂ Companies.

 

[EliasIT]

do you know if it makes it more expensive using Towerbank compared to go directly to‍ citibank ?

 

[Fred]

Yes.

 

[undercover]

With payment processing you mean wire transfers /‍ bank transfers not card processing ?