Crypto trading firm setup

[lifesurfer]

Hi all,

I run automated trading operations on crypto markets via personal account.
Previously I have been working for a proprietary high frequency trading firm.
I have no clients and all the funds are my own.
I'd like to have a corporate account on crypto exchanges instead of personal one.

Thus, I'm looking for crypto friendly incorporation with banking / EMI.

Below are some issues before finding where to incorporate.
- I can have millions of trades during the year. Could I have sort of aggregated reporting instead of checking every trade?
- I look for solutions without licenses
- I need to have low retained earnings and thus low dividend tax or can pay salaries to myself?
- I'm Russian resident

Could you please let me know where to incorporate and trusted service providers and other possible issues?


Thanks,
lifesurfer

 

[BoomBoom]

lifesurfer said:
Hi all,

I run automated trading operations on crypto markets via personal account.
Previously I have been working for a proprietary high frequency trading firm.
I have no clients and all the funds are my own.
I'd like to have a corporate account on crypto exchanges instead of personal one.

Thus, I'm looking for crypto friendly incorporation with banking / EMI.

Below are some issues before finding where to incorporate.
- I can have millions of trades during the year. Could I have sort of aggregated reporting instead of checking every trade?
- I look for solutions without licenses
- I need to have low retained earnings and thus low dividend tax or can pay salaries to myself?
- I'm Russian resident

Could you please let me know where to incorporate and trusted service providers and other possible issues?


Thanks,
lifesurfer
Click to expand...

Did you find any information on your situation?

 

[Don]

I would suggest Estonia or Georgia (no CIT if you don't withdraw dividends). The main things to keep in mind are Russian CFC/PE rules and banking.

 

[CyprusLaw]

lifesurfer said:
Hi all,

I run automated trading operations on crypto markets via personal account.
Previously I have been working for a proprietary high frequency trading firm.
I have no clients and all the funds are my own.
I'd like to have a corporate account on crypto exchanges instead of personal one.

Thus, I'm looking for crypto friendly incorporation with banking / EMI.

Below are some issues before finding where to incorporate.
- I can have millions of trades during the year. Could I have sort of aggregated reporting instead of checking every trade?
- I look for solutions without licenses
- I need to have low retained earnings and thus low dividend tax or can pay salaries to myself?
- I'm Russian resident

Could you please let me know where to incorporate and trusted service providers and other possible issues?


Thanks,
lifesurfer
Click to expand...

Hi, if you are still considering, I would recommend looking into Cyprus as a jurisdiction for your set up

 

[lifesurfer]

Many thanks for your replies. I have recently started Estonia setup.

 

[JohnLocke]

I know for sure there are people around at the forum that are able to help with this issue for instant @neweraoffshore @CyprusLaw and @Gediminas are usually the guys that are able to help. You want to have a chat with one of them.

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[janelafina]

Rather than start a new thread, I'd like to chime in here.

I am in a similar situation to OP, but as a USA resident
- I would like to trade my own funds in a corporate account on popular crypto exchanges
- I would like to be active on exchanges that don't allow US residents
- I would like to do this in a tax-efficient manner. Ideally, I would only want to pay taxes on money withdrawn as salary to myself (which will eventually be all of the profits of the company, but I'd like to defer earnings to future years while I grow the operation)
- I would like to be in control of my funds, even if I use a setup that uses a nominee director and/or shareholder
- Above all, I don't want a knock on my door. I'd like to do everything in a legal, above-board manner.

My understanding is that in order to do this, I need to set up a company offshore somewhere like the Cayman Islands, and appoint a nominee director and a nominee shareholder (likely the same person).

But I am somewhat lost on the remaining details. Here are a few of my questions:
- can this setup exist without a bank account or EMI? if so, how do corporate taxes get paid?
- how do people ensure trust in nominee setups?

I'll likely have more questions - please bear with me - this is an area very far outside my expertise. I am sure there are also onlookers in similar positions. I don't think my predicament is particularly unique.

Last edited: May 2, 2021

 

[spaces]

janelafina said:
Rather than start a new thread, I'd like to chime in here.

I am in a similar situation to OP, but as a USA resident
- I would like to trade my own funds in a corporate account on popular crypto exchanges
- I would like to be active on exchanges that don't allow US residents
- I would like to do this in a tax-efficient manner. Ideally, I would only want to pay taxes on money withdrawn as salary to myself (which will eventually be all of the profits of the company, but I'd like to defer earnings to future years while I grow the operation)
- I would like to be in control of my funds, even if I use a setup that uses a nominee director and/or shareholder
- Above all, I don't want a knock on my door. I'd like to do everything in a legal, above-board manner.

My understanding is that in order to do this, I need to set up a company offshore somewhere like the Cayman Islands, and appoint a nominee director and a nominee shareholder (likely the same person).

But I am somewhat lost on the remaining details. Here are a few of my questions:
- can this setup exist without a bank account or EMI? if so, how do corporate taxes get paid?
- how do people ensure trust in nominee setups?

I'll likely have more questions - please bear with me - this is an area very far outside my expertise. I am sure there are also onlookers in similar positions. I don't think my predicament is particularly unique.
Click to expand...

I am interested in this as well.

 

[uplana]

You need an crypto lawyer - rather a lawyer specialized in the setup of an crypto firm.

We had a guy around here a few months ago, I will see if he can be traced - @Admin do you remember him?

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[PaulKruger]

CyprusLaw said:
Hi, if you are still considering, I would recommend looking into Cyprus as a jurisdiction for your set up
Click to expand...

are you able to help with the setup?

 

[CyprusLaw]

PaulKruger said:
are you able to help with the setup?
Click to expand...

Yes, please send me a PM if you would like to discuss further

 

[EliasIT]

CyprusLaw said:
Yes, please send me a PM if you would like to discuss further
Click to expand...

can you explain what solution you may have available for us please?

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[pesto]

CyprusLaw said:
Yes, please send me a PM if you would like to discuss further
Click to expand...

would like to learn about how you would go about it please?

It would make good sense to explain a little so people get to used to you and understand what you are able to help with!

 

[Marc Rich]

what about a UAE crypto set up?

 

[PaulKruger]

Don said:
I would suggest Estonia or Georgia (no CIT if you don't withdraw dividends). The main things to keep in mind are Russian CFC/PE rules and banking.
Click to expand...

what countries will Russian in the real world report to if I may ask?

Marc Rich said:
what about a UAE crypto set up?
Click to expand...

I don't believe the UAE will make it very easy for someone not living in UAE - wire transfers require a lot of documentations to reach Europe !

 

[Marc Rich]

PaulKruger said:
I don't believe the UAE will make it very easy for someone not living in UAE - wire transfers require a lot of documentations to reach Europe !
Click to expand...

You automatically become a UAE resident by incorporating a set up here. You just need to enter the UAE every 6 months for at least 1 day in order to not have your residency permit cancelled.

 

[DSoz]

did anyone get a proper answer? has anyone setup a company for this usecase?