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Can I give a loan to another offshore company and close mine?

Yaneek

Yaneek

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May 8, 2017
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#1
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Both companies are in the Seychelles (IBCs).

Can I give a loan from my offshore company to the offshore company of a friend of mine and close my company after that? Or will I not be able to close the company as long as the loan is not paid back?

The thing with this is that my friend has a way to withdraw the money and give it to me. (real life friend not somebody I just me on the internet :), so I trust him 100%).

I'm just affraid that I won't be able to close my company after that.
 
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#4
Yaneek said:
Can I give a loan from my offshore company to the offshore company of a friend of mine and close my company after that? Or will I not be able to close the company as long as the loan is not paid back?
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You can do that and no one will be asking questions, what so ever!
 
#7
Actually most banks nowadays ask questions about the nature of payment. In practice it is usually necessary to provide the bank with a loan agreement; the loan should involve accrual of interest; also the bank may require a pledge or sequrity. UNLESS you confirm that you and your friend (or your companies) are related parties, but this may also require substantiation
 
#8
Denny said:
Actually most banks nowadays ask questions about the nature of payment. In practice it is usually necessary to provide the bank with a loan agreement; the loan should involve accrual of interest; also the bank may require a pledge or sequrity. UNLESS you confirm that you and your friend (or your companies) are related parties, but this may also require substantiation
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What banks do you referrer to if I may ask?
 
#9
Swiss banks (a couple of them, I am pretty sure that it is a common policy), Cyprus bank (BoC, Eurobank)..And I heard about the same issues with Barclays.

Thats what I personally experienced recently. Do you have a different experience? Which reliable banks now easily pass payments without confirmation?
 
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#10
Denny said:
Cyprus bank (BoC, Eurobank)..And I heard about the same issues with Barclays.
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again you taking that out of a context that not apply to all banks! You need to build up a relationsjip with the banks so you will avoid all the trouble.
 
#11
Simply make a transfer from one company to the Seychelles, Belize or other offshore company's bank account. Forget about loan agreements and advance law suite examples, it does simply not apply for your situation here!
 
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#12
Denny said:
Actually most banks nowadays ask questions about the nature of payment. In practice it is usually necessary to provide the bank with a loan agreement; the loan should involve accrual of interest; also the bank may require a pledge or sequrity. UNLESS you confirm that you and your friend (or your companies) are related parties, but this may also require substantiation
Click to expand...

I haven't had any of my banks request anything like this yet. If they did I would change banks.
 
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#15
The only issue some may face is the fact that the local tax office won't trust this loan and just note it as tax avoidance or even tax evasion! This means troubles for you.
 
#16
If you want to do it by the book, then

1. Transfer ownership of your company (Y Inc) to your friend's company (F Inc). You can write this on a piece of paper.
2. Write a agreement between you and Y to make your loan freely transferable (if it isn't). Another piece of paper.
3. Pay dividends from Y to F in the form of the loan.
4. Close Y
 
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