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Offshore company to hold only IP, bank account not needed

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If you look for something trustworthy, I would look in the direction of Cyprus, Malta‌ and BVI - if you don't care about credibility you can setup the thing in‍ the Seychelles for less than USD 800!
 
There are some locations that have blocked IP holding as an activity now so I‌ would suggest using a professional who understands what is and is not possible in each‍ location for this. It is essentially a very simple requirement though.
 
Why not Wyoming? It's cheap and quick to create and hard to sue
 
Cyprus is one of the most credible jurisdictions for IP in the EU. Otherwise BVI (which⁠ you will need to have presence based on new regulations) or Belize.
 
I'm not sure Cyprus is particularly credible for IP over any other location to be‌ honest, but BVI or Belize impose certain requirements for substance essentially where IP is concerned‍ meaning that these locations are no longer particularly appealing for IP holding entities.
 
Economic Substance refers to new legislation introduced in the British Virgin Islands (BVI) which derives‍ from an EU based unfair tax practices initiative that requires certain entities that are incorporated⁠ or registered in the BVI, and which conduct one or more of a set list⁤ of nine relevant activities, to comply with local requirements and demonstrate adequate ‘economic substance’. The⁣ BVI legislation follows closely the approach taken by the Crown Dependencies of the UK (Jersey,⁢ Guernsey and the Isle of Man) and the other UK Overseas Territories including the Cayman︀ Islands and Bermuda.

The legislation imposes economic substance requirements on companies incorporated or registered in︁ the BVI and limited partnerships with legal personality that are formed or registered in the︂ BVI (together, relevant legal entities), which carry on one or more of the following relevant︃ activities:

Banking
Holdings Business
Insurance
Fund Management
Headquarter Business
Finance and Leasing
Distribution
IP
Shipping

https://www.bvifsc.vg/library/legislation
 
Background Cyprus IP regime is fully compliant with international developments in⁤ the tax treatment of IP income and OECD’s guidance. The IP regime has been reviewed⁣ by the EU Code of Conduct and has been assessed as fully compatible with EU⁢ standards. Benefits of the Cyprus IP regime 80% of the profits qualifying for the regime︀ are exempt from tax. With a corporate tax rate of 12.5%, this can result in︁ an effective tax rate of as low as 2.5%. Relevant details of the regime Under︂ the Cyprus IP regime, 80% of the qualifying profits generated from the qualifying assets is︃ deemed to be a tax deductible expense for qualifying taxpayers. In calculating the qualifying profits,︄ the new regime adopts the ‘Nexus’ approach. According to this approach, the level of the︅ qualifying profits is positively correlated to the extent the claimant performs R&D activities to develop︆ the qualifying asset (QA) within the same company. Qualifying assets Qualifying assets under the new︇ regime include: • patents, • copyrighted software programs, and • other intangible assets that are︈ non-obvious, useful and novel. Qualifying assets do not include trademarks and copyrights.
 
Thanks for the reply!

But something I don't understand, the company should only hold the‌ IP so no bank account. What has tax got to do with the company then?‍
 
Very little if the IP company is not receiving royalties etc as there is⁠ no tax liability. I guess you just want to ring fence the IP? You could⁤ use a UK company for that. I wrote a thread on cheap UK company setup⁣ if your search forum. Just make sure you declare it all to your taxman and⁢ do annual filing. You need to do this as taxman does not know company has︀ no activity unless you tell them sadly.
 
Whether income︆ will be generated by the IP has not been discussed and therefore how relevant the︇ tax regime of the holding company is has not been established. More importantly the compatability︈ of the IP tax regime with EU standards as mentioned in your post earlier, may︉ or may not be relevant at all to the contributor. The information on Cyprus may︊ of course change the position, but more information would be needed to see whether that︋ is applicable or not. In most cases a location that protects the owner of the︌ IP is sufficient.
 
Can this be⁢ done with domain names (UK dormant company which holds a few domains)? What if you︀ want to sell the domain to someone?
 
You need to speak to an accountant. Questions such as do you enter the domain⁠ name on the companies books at the market value you bought it at need to⁤ be answered. Also will you then have to pay capital gains tax on the difference⁣ between the price you entered it on the companies books at and the price you⁢ sold it at? I would say the answer is yes to both questions. Personally I︀ would go far offshore for this. I just saw news that Labour want to increase︁ UK corporate tax to 26% if they come into power 😳

I take back my idea︂ of using UK company for IP due to low cost alone. The UK political risk,︃ tax changes, brexit etc is too high for my tatste. Find another far offshore jurisdiction︄ as tax today is no concern for you until later date. You can always declare︅ the offshore company and move residency to a tax free country before any sale. Plenty︆ of people do this all the time with larger businesses.
 
Also because being a US company it has more power to enforce IP overseas
 
+++

small question : does this imply that for︂ all OTHER activities, there is no substance requirement ? There are many small online consulting︃ or coaching or services or marketing or management or freelance or ... business owners /︄ start ups out there (including myself) who are looking for a hassle free company in︅ terms of audit, accounting, filing, reporting, next to tax friendliness and operational. BVI companies seem︆ to have access to many good banks and can even have a Neat online business︇ account ... (only few countries can). BVI = 0 % corporate tax, 0 % income︈ tax, 0 % dividend, rents, ...

perhaps a BVI could be a solution for online︉ SMB's and/or freelancers looking for convenience ?

About Cyprus & IP : I read somewhere︊ these were called IP boxes and have been exterminated by the 'higher powers' ... looks︋ like everything that can benefit small entrepreneurs too, must go. Strange we never heard of︌ an attack on the trusts ... because that is where the most and the most︍ black and the oldest money is sitting ...
 
I totally agree with you. They are in a process to remove everything‍ that the small man could hide there last safings. The Elite of this world, the⁠ 1% will keep their money holes a live and no one will ever touch it.⁤
 
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