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]

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 have︀ strong CFC rules in your country then an offshore setup will not help you tax︁ wise unless its all managed at arms distance or you change residency.

Maybe @Fred can help with UAE side.

 

[Gediminas]

Hey,

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

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

In UAE︌ you also might set up a fully licensed crypto exchange. UAE Securities & Commodities authority︍ started to issue exchange licenses just recently. Company with such activities might be established in︎ DMCC (they already have special activities for crypto exchanges). Currently, it is possible to open️ 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. Plus︀ such activities overall are not allowed.

I hope this helps.

 

[sp2021]

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

 

[sp2021]

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

 

[Martin Everson]

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

 

[Gediminas]

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.⁤

 

[sp2021]

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]

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. 😉

 

[uplana]

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.

 

[PhantomOf ThePits]

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

 

[Martin Everson]

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

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

 

[BrianTan]

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.

 

[uplana]

does it require‍ an introducer?

 

[Fulton Abraham Sanchez]

yes, it does.