Best setup for investing in stock market

[Roserz]

I am a non-US person and active trader in USA stock markets. I was suggested to invest through an offshore company, as I can defer tax payments in my country for when I withdrawal funds, instead of when I make profits in the trading account.
What you think is the best setup for an individual wanting to trade in USA through an offshore company? I know most non-residents do not pay capital gains tax and have to pay 30% witholding tax on dividends. Are american stock brokers like Interactive Brokers fine with offshore clients? What's the most recommended company type?

 

[mnschwarz]

I am a non-US person and active trader in USA stock markets. I was suggested to invest through an offshore company, as I can defer tax payments in my country for when I withdrawal funds, instead of when I make profits in the trading account.
What you think is the best setup for an individual wanting to trade in USA through an offshore company? I know most non-residents do not pay capital gains tax and have to pay 30% witholding tax on dividends. Are american stock brokers like Interactive Brokers fine with offshore clients? What's the most recommended company type?

IB will take offshore companies. They have access to a lot of markets & securities and have low fees so could be a good option. Deferring taxes will depend on your country of residence, CFC laws etc. And IB will report the beneficial owner I believe. Popular offshore jurisdictions for low taxes include Belize & Seychelles.

 

[suzy]

Belize is one of the best choice once you pass 2018 since it will be one of the few jurisdictions that will keep privacy towards owners of Belize corps!

 

[mnschwarz]

Belize is one of the best choice once you pass 2018 since it will be one of the few jurisdictions that will keep privacy towards owners of Belize corps!

Suzy, can you expand on this? Why Belize after 2018?

 

[suzy]

because they maintain privacy and no public records while Seychelles and many other's don't do!

 

[adoffshore]

Belize and Panama for invetsment companies! Alternatives are St. Kitts and Costa Rica which don't require a license!

 

[mnschwarz]

because they maintain privacy and no public records while Seychelles and many other's don't do!

I think that's a bit misleading. Belize memorandum and articles of association are public records. Seychelles is similar but from 1st December 2018 a register of directors is public record. This is obviously very easy to avoid with a nominee however and anyone concerned with privacy would be advised to use one, even with a Belize corp.

 

[suzy]

Belize memorandum and articles of association are public records.

Can you backup this claim? where, links and proof please?

 

[mnschwarz]

Can you backup this claim? where, links and proof please?

It's covered in the Companies Act, Chapter 250 of the laws of Belize. You can find it at http://belizecompaniesregistry.gov.bz/. You could also just consult your registered agent or do a simple google search. Plenty of agents list what is and isn't publicly registered for differing jurisdictions.

 

[mnschwarz]

Can you backup this claim? where, links and proof please?

Apologies. I believe it's actually IBC Act Chapter 270, not 250 as mentioned above. http://www.ibcbelize.com/pdf/cap270.pdf