Which jurisdiction do you recommend in terms of reputation, cost-effectiveness, process simplicity, banking system...?
Where to set up a tax free offshore company? BVI, Belize, Mauritius Islands, Panama...?
- Thread starter zeeoffshore
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They all have (more or less) bad reputation and banking is difficult. Belize is cheapest and easiest. BVI second. Then Mauritius.
But it's 2020. Offshore companies are almost always useless, unless you establish an office there and have people working for you.
What do you want from an offshore company that a just forming a local company and opening a local bank account can't do?
But it's 2020. Offshore companies are almost always useless, unless you establish an office there and have people working for you.
What do you want from an offshore company that a just forming a local company and opening a local bank account can't do?
the purpose is tax savings.
when you say bad reputation and banking is difficult, you mean we might face problems in receiving payments from our clients? please clarify.
when you say bad reputation and banking is difficult, you mean we might face problems in receiving payments from our clients? please clarify.
It is actually a interesting question you rise there, I think I will reopen this in a new thread to get suggestions what the purpose other then tax evasion or banking may be.
I know that there are other purposes for such entities then just the already mentioned reason, but maybe there are even more.
I know that there are other purposes for such entities then just the already mentioned reason, but maybe there are even more.
That's probably not realistic. Unless you live in a tax haven, you can't legally save on tax by having an offshore company. If you live in a developing country with limited tax law enforcement, you might be able to illegally not pay tax where you live.
The concepts of tax residence, CFC, and related topics have been covered before on this forum and you can find a lot of information about it if you search.
You will have problems opening an account︁ to begin with. It's not impossible, especially if you are OK with an E-Money Institution︂ (EMI) and not a traditional bank.
This is fine if all you need it SEPA/EUR︃ access but for other currencies and non-SEPA payments, the EMI is reliant on correspondents/partners and︄ you may find it difficult to access GBP, USD, CAD, SGD, and so on with︅ an offshore company.
You may also run into problems receiving payments, if your clients' finance︆ departments don't like seeing invoices from tax havens. Some companies will refuse to work with︇ offshore companies.
The concepts of tax residence, CFC, and related topics have been covered before on this forum and you can find a lot of information about it if you search.
You will have problems opening an account︁ to begin with. It's not impossible, especially if you are OK with an E-Money Institution︂ (EMI) and not a traditional bank.
This is fine if all you need it SEPA/EUR︃ access but for other currencies and non-SEPA payments, the EMI is reliant on correspondents/partners and︄ you may find it difficult to access GBP, USD, CAD, SGD, and so on with︅ an offshore company.
You may also run into problems receiving payments, if your clients' finance︆ departments don't like seeing invoices from tax havens. Some companies will refuse to work with︇ offshore companies.
Yes there are. For non-bank passive investment or ownership activties offshore companies are good.
for asset structuring i would say, complicated shareholder agreements and proper dividend distribution
also for securitization and liquidity events (sales/purchases of assets in a SPVs)
but for tax evasion non(mis) reportable accounts are becoming new offshores
also for securitization and liquidity events (sales/purchases of assets in a SPVs)
but for tax evasion non(mis) reportable accounts are becoming new offshores
Just interested in this pattern.
As I understand, a offshore comp (+ bank account?) could be useful for non-bank passive investment.
What exactly is a non-bank passive investment? For which type of business or purpose I could use a construct like this?
As I understand, a offshore comp (+ bank account?) could be useful for non-bank passive investment.
What exactly is a non-bank passive investment? For which type of business or purpose I could use a construct like this?
One can use an offshore company with substance for example to own Intellectual Property (IP).
Lets say for example you are a chip manufacturer in a western country 😉. You want to sell your technology to Huawei for some billions. Your western country forbids the transfer of such technology from your country to China because well - China is the economic enemy...lol. If all IP is held in an offshore entity outside your country then nothing stops you from continuing the transaction if offshore company is managed at arms distance.
Lets say for example you are a chip manufacturer in a western country 😉. You want to sell your technology to Huawei for some billions. Your western country forbids the transfer of such technology from your country to China because well - China is the economic enemy...lol. If all IP is held in an offshore entity outside your country then nothing stops you from continuing the transaction if offshore company is managed at arms distance.
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