Question Best jurisdiction for company - trading crypto assets, no bank account required.

[manukahoney]

Hi guys!
Looking for a simple and cost-efficient setup for a start-up that will accept payments in crypto, pay contractors in crypto, store some crypto assets and basically don't rely on traditional banking system at all.
There is no need in setting up accounts in centralised exchanges as well, so basically no KYC checks needed on that side.

Business is legit, nothing silly.

Looking for a jurisdiction that:
- has relaxed rules for accepting/trading crypto or doesn't regulate crypto at all
- low (preferably zero) taxes - outside of EU VAT zone
- simple or no reports
- cost efficient (no substance requirement, cheap accounting etc)

Again, there is no need in a banking account whatsoever.

Thanks in advance!

 

[uplana]

Setup a Seychelles, Belize or other simple company, check mentor group gold , it's for sure with your plans, then use some of the hundred of wallets available that don't require any KYC, see the free guide section below:

Offshore Company & Banking and Cryptocurrency

Information and Guide - This section of the forum is an article based section where we will post articles about offshore company formation, offshore banking, cryptocurrency and payment processing not specified to any jurisdiction or bank. It is not allowed to start new threads here.

www.offshorecorptalk.com

 

[LuckyFarmer]

You should probably also think about whether the company can set up an account with a platform like Binance or FTX. You should still need them for holding, buying and transfering cryptos around. Yes you can use a wallet and places like uniswap but shouldn’t a Binance account is better?
There is another thread here where the OP researched in details about this and went with BVI.
Belize and Seychelles are cheap to set up but someone has said that he could not set up an account for the Seychelles com with Binance.

 

[EuroKiss]

You should probably also think about whether the company can set up an account with a platform like Binance or FTX. You should still need them for holding, buying and transfering cryptos around. Yes you can use a wallet and places like uniswap but shouldn’t a Binance account is better?
There is another thread here where the OP researched in details about this and went with BVI.
Belize and Seychelles are cheap to set up but someone has said that he could not set up an account for the Seychelles com with Binance.

Would be ironic, since Binance is a company registered in Seychelles...

 

[Tr0nad0r]

Would be ironic, since Binance is a company registered in Seychelles...

I guess it makes sense since they may be liable for local taxes if they have "local" clients

Seychelles imposes no tax in place for corporations that do not conduct their business activities within the Seychelles territory. In other words, an offshore company in Seychelles pays no taxes on income generated abroad

 

[manukahoney]

In my opinion DEXes will cover all the exchange needs if some arise. The company is not planning to trade currencies and derivatives, only accept basic crypto (btc, eth, usdt/c) as payments for services and pay some contractors. Nothing fancy.

 

[GiGoGo]

Seychelles, Samoa or Marshall. Use DEX for swapping. Try to get a local director to avoid tax problems with your resident country

 

[LuckyFarmer]

Seychelles, Samoa or Marshall. Use DEX for swapping. Try to get a local director to avoid tax problems with your resident country

Hi,

Generally are there any difference between these three or they are all the same for the purpose of a crypto company?

 

[GiGoGo]

Hi,

Generally are there any difference between these three or they are all the same for the purpose of a crypto company?

Seychelles - More established, cheaper and easy to deal.
Samoa - The most opaque one but also the one you don't want to issue invoices from
Marshall - US Territory and USD as official currency, but no taxes and cheap filling. Don't touch it if you want to stay out of US radar.

 

[LuckyFarmer]

Seychelles - More established, cheaper and easy to deal.
Samoa - The most opaque one but also the one you don't want to issue invoices from
Marshall - US Territory and USD as official currency, but no taxes and cheap filling. Don't touch it if you want to stay out of US radar.

Thanks. Have you ever tried to set up an account with any crypto exchange for these companies?

 

[Tr0nad0r]

Something to consider as well is that the jurisdiction should allow (or at least not disallow) the payment of share capital with crypto or if you should have a bank account for this purpose.

 

[manukahoney]

Something to consider as well is that the jurisdiction should allow (or at least not disallow) the payment of share capital with crypto or if you should have a bank account for this purpose.

You mean personal account for shareholder?

 

[Tr0nad0r]

No, many jurisdictions ask you to provide proof of payment of the initial capital that you declared when incorporated the company, typically this is done by showing the transfers from the shareholders to the company's bank account.

There are jurisdictions (like Estonia) that allow you to use crypto as initial capital so you can show as proof the transfers from your personal crypto wallet to the company's wallet but not all jurisdictions allow this.

A couple of useful threads about the topic:

Estonian Company - Bitcoin as part of the initial capital?

Hi All, I got 3 questions: (1) Can I put my crypto (Bitcoin) as initial capital when I will be forming company in Estonia? (2) If I want to withdraw these Bitcoin at the later stage from the company - what taxes I should expect to pay? (3) What if the value of these Bitcoin will increase while...

www.offshorecorptalk.com

Incorporate cryptos to a company

Under which jurisdiction could I incorporate my crypto assets to a company without being taxed for it or being asked about the source of funds?

www.offshorecorptalk.com

Edit: a new topic just created:

Company in UAE and capital paid in crypto

Is it easy to set up a company in UAE and use crypto (Bitcoin) which belongs today to me (private person) to transfer over into newly set up UAE based company and use it as a starting capital? The reason why I want to do this is to avoid wealth tax in NL.

www.offshorecorptalk.com

 

[manukahoney]

Got it.
It's a valid point to consider, thank you!