Where can i form an offshore company - then move over there to work for the company

[robertisnt]

Summary: I want to form and offshore company in a appropriate country and then move‌ over there to work for this company.

I suppose most people here who have offshore‍ companies, work for the company from their home country.

I want to form an offshore⁠ company, but with a significant twist. I need to be allowed , by law of⁤ offshore country, to work from there. I will basically move there over a period of⁣ 5-6 months per year, and I will go back home. Since during the time I⁢ work for my company, I will still be resident of my "old" country I should︀ be able to set my salary (per laws of country where my company is incorporated︁ in) to zero.

I do online marketing services for several USA based companies. More precise︂ it is affiliate marketing. I do the business directly from my pc, and I am︃ getting paid by these USA based companies.

So I am not sure if that counts︄ as International business, even I don't do any business with companies from the country I︅ incorporated in. Because I still perform services/work inside this country.

Specifically if we talk about︆ a Belize based IBC:

1) Can I work from my Belize company office (I am︇ not resident of Belize) if I have IBC. I am getting

2) If I stay︈ long enough to become a resident of Belize, could I still operate as tax free︉ IBC? So I do have to pay income taxes and dividends.

3) Is there a︊ way to avoid becoming a resident of Belize, even if I stay like 6 months︋ per year over there?

 

[tiea-hunter]

I'm new here so forgive me if this is not the proper reply. I hope‌ it helps anyway.

Facts on Immigration Procedures

If you are planning to travel to Belize‍ and you are not a Commonwealth, Mexican, North American (U.S.A.), Costarican, Austrian or national of⁠ a member state of the European Community you require a visa. Any Belizean Consulate or⁤ Embassy can issue one at the cost of $25.00 U.S. currency. This visa is valid⁣ for thirty(30) days only. If there is not a Belizean Consulate in your country you⁢ can obtain a visa through the nearest British Embassy or you can still travel to︀ Belize and the Immigration Officer at the Phillip Goldson International Airport may issue one for︁ the same cost and duration.

While citizens from the European Community do not require visas︂ for travel to Belize, citizens of Bangladesh, Bolivia, Colombia, China, Angola, Brazil, Afghanistan, Lebanon, Cuba,︃ India, Libya, Pakistan, Peru, South Africa and nationals of the former USSR require previous approval︄ for a visa from the Ministry of Human Resources, Department of Immigration.

After being thirty︅ (30) days in Belize and you still require more time to finish your business, you︆ need to contact the nearest Immigration Office to get an extension, paying BZ $25.00 for︇ every thirty days extended period.

Any individual can apply for permanent residence after having one︈ (1) year legal residence fee in Belize on a continuous basis. Permanent residence fee is︉ $100.00 and a deposit is needed which can range from

$100.00 to $1,200.00 depending on︊ the nationality of the applicant. This deposit may be refunded three (3) years after residency︋ is granted. The application form is to be accompanied by two pass-port photographs of each︌ member of the family wishing to travel to Belize and the back of the photograph︍ should be endorsed with his or her name and signed by a Justice of Peace.︎ In addition you should attach to the petition your personal bank statements as well as️ current Medical and Police Records.

To acquire nationality status the applicant should have permanent residence‌ and or be a legal resident for a minimum of five(5) years in accordance with‍ the Belizean Nationality Act of 1981 (Section l0); there is also a provision for the⁠ registration of minor children along with the applicant (Section 12). All necessary evidence should accompany⁤ the application to avoid delays.

Why should that be any issue? Most countries will allow such thing.

 

[robertisnt]

Let me explain it better. Keep in mind that Belize is just an example.

From Wikipedia: "Typically the IBC cannot conduct business in the country of incorporation."

Does "conduct business‌ in the country of incorporation" means, i cannot do business with local Belize companies and‍ individuals from Belize, or that i also cannot work for my company from Belize. My⁠ work is info product creation. So i would like to go to Belize, rent an⁤ apartment,and for here for my IBC 3-4 month per year.

Where owners of offshore companies,⁣ typical work and manage that company from. If i didn't explained this well I mean⁢ where the value/product creation is located. The offshore country, home country or third one.

Thanks you post was very helpful. I think i need a work visa.

It is a problem in some countries. For example, in countries close to the country of︁ mine the minimum salary is around 50% of the average salary.

 

[robertisnt]

Admin

Can i both reside and manage a Cyprus company from Cyprus. and have 10%‌ tax rate, since all income derives from outside of the Cyprus? Is cost of living‍ in Cyprus less than 1500 EUR per month?

Also is there any other country than⁠ Cyprus where i can reside, and own an IBC(or any other offshore company form), providing⁤ that all income of mine derives from outside of that country?

 

[tiea-hunter]

So it means that you can't for instant move to the Seychelles and do‍ business from there, or, does it mean that you can move to the Seychelles form⁠ an IBC but can't conduct business locally (in the Seychelles) but offer your services to⁤ the rest of the Globe is OK?

 

[fionix]

I asked them about this⁠ for some time ago and it isn't any problem to manage a Cyprus company and⁤ only pay 10% corporate tax even if you live there. I have been visiting Cyprus⁣ and I tell you it is expansive compared to the UK at least.

 

[robertisnt]

..........

 

[robertisnt]

The most important, do you have right⁤ to reside there as a tourist and work/manage your company. It seems to be a⁣ very easy solution, since i do not need any visa for this. I can stay⁢ 3 months every 56 months. That is quite fine, because i am not that hard︀ working 🙂

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What people usually do, live in their home countries and the still have︁ offshore companies managed by nominee directors. But who work for these companies, and where people︂ who work for the company (either full time or part time).

Typically do UK tax︃ system doesn't mind if you work from home (like digital product selling) for your company,︄ but you do not report it to them.

I have read on few forums that︅ around 1500E is quite enough to live comfortable, providing you do not bring your family︆ with you.

Also pretty solid villas for rend can be found for a s little︇ as 500E per month.

 

[JohnLocke]

You can without any issue own a Cyprus company also if you are a⁢ Cyprus resident, the company can simply just not be registered non resident as long as︀ you are the director and shareholder of the company and as well as you live︁ in Cyprus. If you still want it to be a non resident company you will︂ need foreign nominee's i.e. shareholder and director.

You will be liable for personal income tax︃ in Cyprus (Inland Revenue Department - FAQ :check: ) when you take money out of︄ the company of course.

 

[robertisnt]

So lets say i spend 5 months per year on Cyprus so i am︀ not resident, using a travel visa. can i work in this case for my company︁ from there providing. Or i still need work permit visa. In this case i will︂ most likely become a resident, which i do not want if taxes are very high.︃

So please let me know if i understood it well. Lets say my company earns︄ 100 000 EUR per year. I am gonna pay myself everything as dividend.Then i would︅ need to pay:

1) 10% corporate income 10% tax = 10 000 EUR

2) Dividend︆ tax - 15% = 13 500 EUR

3) Personal income tax - 35% ~ 27︇ 000 E.

So the tax is around 50%. Are you sure i need to pay︈ both dividend tax and personal tax. This doesn't make much sense, as this is too︉ high.

 

[orangeye]

Doesn't it comes down to how you want to live and how much luxuries one need⁠ in his daily life? If this is the money you can do while moving to⁤ a offshore country I would think twice before doing so 🙂

 

[clemens]

You don't have to pay Dividend tax i.e. 15% and Corporate tax... only corproate tax.‌ Also there are ways to avoid both income and corporate tax in Cyprus 😉

 

[robertisnt]

I think you do not have to pay dividend if you spend⁠ less than 183 days in Cyprus.

Not sure if i need visa to work for⁤ my company from cyprus that long (6 month per year).

Even if i earn︁ as little as 10K per month, Cyprus is much better than my country for many︂ reasons. Surely for 1500 it isn't worth it.

 

[clemens]

Okay so you like Cyprus, me too 🙂 But benefit / profit calculation should at any‌ time match your goals you try to achieve.