Accounting records and cash injections

[mnschwarz]

Hey guys,
I’m just curious how you would show (on accounting records) an injection of cash from a personal source to your offshore corporate structure? I realise most of the jurisdictions we use (including my own) don’t require accounting records but I keep them because I’ve been asked a few times by banks, exchanges etc when opening accounts.

In the past I did it as a loan to the company but it’s a pain supporting that with documentation and having to eventually repay the loan etc etc. I just wanna dump money in the corporate account and be able to show it semi-legitimately on an accounting record.

Would you just make up some random form of income? Interested to hear how you’d go about it. Cheers!

 

[Spinat]

So far I have used a few EU entities I created where I transfer the money to, then from these entities to the offshore company. After one year I let the EU entities run out and be liquidated. This is not an optimal solution but it has been working for a some years so far.

However, I'm in the same situation as you know and consulting some professionals next week in order to get their opinion about what and how to do this stuff.

 

[anticfc]

No need to make fake sales - this is just an increase in paid in capital. You can emit more shares to yourself, but you don't have to.

Some examples to make this more clear.

 

[Spinat]

No need to make fake sales - this is just an increase in paid in capital. You can emit more shares to yourself, but you don't have to.

Some examples to make this more clear.

don't get it. Is this just to spam your link?

 

[anticfc]

don't get it. Is this just to spam your link?

? Isn't this an accounting question?

 

[happyjohn]

Hey guys,
I’m just curious how you would show (on accounting records) an injection of cash from a personal source to your offshore corporate structure? I realise most of the jurisdictions we use (including my own) don’t require accounting records but I keep them because I’ve been asked a few times by banks, exchanges etc when opening accounts.

In the past I did it as a loan to the company but it’s a pain supporting that with documentation and having to eventually repay the loan etc etc. I just wanna dump money in the corporate account and be able to show it semi-legitimately on an accounting record.

Would you just make up some random form of income? Interested to hear how you’d go about it. Cheers!

I'm in the same situation and looking into a UK company that will send the money to the local corporate account! as far as I asked my tax advisor he told me that is possible and legal! Now I just need to anonymize the UK corp which I seem to have found a solution for now.

 

[Stefano3323]

I think the increase in paid up capital should work. You are currently owner of your company and you have i.e. 10,000 shares. This shares most likely have a par-value of $0.01 each. If you ask the incorporation agent to increase the share amount to i.e. 20,000 you will be able to deposit $1,000 in the company. And in accounting the movements would be 'cash in the bank' and 'owner's equity'.