Setting up a Tax-Free corp with EMI - where.

[Jerry56]

Hi all,

I am looking to set up a tax-free corp with an EMI service. This way my clients in Canada can make payments to a regular Canada account number. I would love to use Wise.com, however, they don't seem to offer this anymore to the countries I have tried.

Ideally, I would use Belize, however, I cant seem to find a way to do this.

Does anyone have suggestions on service and country that could accommodate this?

 

[KDX]

Jerry56 said:
Hi all,

I am looking to set up a tax-free corp with an EMI service. This way my clients in Canada can make payments to a regular Canada account number. I would love to use Wise.com, however, they don't seem to offer this anymore to the countries I have tried.

Ideally, I would use Belize, however, I cant seem to find a way to do this.

Does anyone have suggestions on service and country that could accommodate this?
Click to expand...

Are you aware of terms such as, UBO CRS FATCA AEOI PE (Permanent Establishment) CFC ?

Could you tell us some additional info that may affect tax structuring?
Your citizenships
Your residences
Your tax residences
How much revenue
Can you relocate?

This is just because some people are not familiar with offshore structures and they aren't aware that they could get into real trouble with the tax authorities if they do it wrong.

 

[Jerry56]

KDX said:
Are you aware of terms such as, UBO CRS FATCA AEOI PE (Permanent Establishment) CFC ?

Could you tell us some additional info that may affect tax structuring?
Your citizenships
Your residences
Your tax residences
How much revenue
Can you relocate?

This is just because some people are not familiar with offshore structures and they aren't aware that they could get into real trouble with the tax authorities if they do it wrong.
Click to expand...

Great questions, all of which I am working out with my accountant. As for the EMI question, do you have suggestions on banking options? I am looking for a Canadian account number so I can receive payments from my clients. Wise offers this, but does not work with Belize.

 

[KDX]

Jerry56 said:
Great questions, all of which I am working out with my accountant. As for the EMI question, do you have suggestions on banking options? I am looking for a Canadian account number so I can receive payments from my clients. Wise offers this, but does not work with Belize.
Click to expand...

Depends on your business. Is it high risk?

If I were you, I'd still supply all the info I asked, because many people do not realize these have a huge impact on what you can do!

Wise can work, but if you operate a high risk business like P**N gambling digital products etc, your account can get frozen. The more info you give us, the more we can recommend on what you should do and what would fit your needs.

Many people come on OCT asking "Who can make me a company in X jurisdiction (belize, BVI, seychelles etc) with banking?" And then, they are disappointed at the fact that there are so many rules and regulations nowadays that tax evasion is nearly impossible.

You can't just run a company from your home country while claiming it's only taxable in a tax haven. Your tax authority will come knocking on your door after receiving CRS reports from your company bank accounts. And its useless to claim "nominees" are the ones running the show. They're not and the tax authority knows it.

You will likely need to relocate if you are not already a resident in a tax haven or a territorial tax system.

Last edited: Mar 20, 2022

 

[Jerry56]

KDX said:
Depends on your business. Is it high risk?

If I were you, I'd still supply all the info I asked, because many people do not realize these have a huge impact on what you can do!

Wise can work, but if you operate a high risk business like P**N gambling digital products etc, your account can get frozen. The more info you give us, the more we can recommend on what you should do and what would fit your needs.

Many people come on OCT asking "Who can make me a company in X jurisdiction (belize, BVI, seychelles etc) with banking?" And then, they are disappointed at the fact that there are so many rules and regulations nowadays that tax evasion is nearly impossible.

You can't just run a company from your home country while claiming it's only taxable in a tax haven. Your tax authority will come knocking on your door after receiving CRS reports from your company bank accounts. And its useless to claim "nominees" are the ones running the show. They're not and the tax authority knows it.

You will likely need to relocate if you are not already a resident in a tax haven or a territorial tax system.
Click to expand...

The work is not high risk and is online consulting. Currently, it is running through a Canadian corporation that I will be closing once I strategically deleverage it.

I also plan to relocate. That said, Wise does not open Belize accounts so it cannot provide Canadian bank account details for my client to deposit into.

I am open to suggestions, but I was wanting to use Belize.

 

[KDX]

Jerry56 said:
The work is not high risk and is online consulting. Currently, it is running through a Canadian corporation that I will be closing once I strategically deleverage it.

I also plan to relocate. That said, Wise does not open Belize accounts so it cannot provide Canadian bank account details for my client to deposit into.

I am open to suggestions, but I was wanting to use Belize.
Click to expand...

Why Belize? it's not a good jurisdiction. You should get a company in a jurisdiction where it's easy to get banking.

HK can be tax exempt. Cyprus has an IP box regime which I don't think would apply to this. UAE FZCO is 0% tax, easy to get a visa along with your company.

Places you could relocate to:

UAE via FZCO regime (0% tax, 9% CIT on mainland companies)
Thailand via Elite Visa (territorial tax system)
Bahamas (750K real estate investment)

These are just a few ideas but, there's lots of people here who can help you with the above especially Cyprus and Dubai.