Offshore structure for SaaS business

[ralfie]

Hi!

I'm living in Europe and I own an IT engineering company. This company does well and has many local customers. I'm about to launch my new SaaS online marketing service, focusing on the analysis of customer profiles. Now, this new venture is perfectly legal, but could potentially reflect badly on my established business (data protection laws, trust, ...). So I'm thinking of creating an offshore structure to remain private in the new business.

My idea is to have the offshore company run the new service. So the offshore company will receive all the revenue from the new business and will also cover all costs associated with the new business. I will then send invoices from my current company to the new offshore company to bring the profits into my current setup.

I'm a noob when it comes to offshore structures. Does this make sense or is there a better way?

Thanks in advance!

 

[Gravity]

It does make sense, though you will have trouble finding a bank for offshore companies. As long as you pay your taxes you should be fine.

But keep something in mind: since your customers are most likely from a high-tax-county as well, they might have problems with your offshore invoices, depending on how much you charge them. It is not likely, though the local tax man (for example in Germany) obviously doesn't like invoices for services from offshore.

Do you mind if your personal name shows up anywhere? If not, go with a Seychelles IBC and a UK LLP. UK LLP billing your customers in Europe, profit transfer agreements with the Seychelles IBC. But since you'll face problems with the banks, prepare to lose quite some cash with EMIs and transferring.