Company vs just bank account

[Joeydiaz]

Hello everyone,

I am new here, from reading around on the threads, this seems like a very frank and direct forum, which is refreshing.

My main goal is to be able to receive payments for online products I offer, usually from bank transfers (transferwise) and paypal, without having anyone know about it- such as my residence country etc.

Ideally, I would like to bypass paypal too, or get an address in the "new country/tax haven" so that I could run paypal under that address instead and not have European re´´country where I am registered know about it. I am a resident of Denmark, and it is notoriously difficult to not have to pay taxes here, even if I officially move to another country.

What I don't really understand is what are the pros and cons of setting up a company AND a bank account offshore, instead of just setting up a bank account of shore and finding conventional and creative ways to funnel the money into the bank account?

 

[Bandito]

Hej

You should start a company somewhere, you will have to find out which will be the best jurisdiction for you.

How much is your yearly turnover right now?

 

[Joeydiaz]

Hej

You should start a company somewhere, you will have to find out which will be the best jurisdiction for you.

How much is your yearly turnover right now?

My yearly turnover is not so much right now, but I expect that it will greatly increase over the next couple of years. What would be the benefit in having a company over just having a "secret bank account?"

 

[Tax Cow]

In layman's terms, there is not much difference. You will be evading taxes either way.

With a corporation, you will have another layer of "identity protection" but you will also have another point of risk exposure (think of that poor fellow of a prime minister of Iceland who lost his rep to Mossack Fonseca leak).

 

[James Turner]

My yearly turnover is not so much right now, but I expect that it will greatly increase over the next couple of years. What would be the benefit in having a company over just having a "secret bank account?"

In essence the difference between personal banking and offshore company formation with banking in the company name is the number of layers created between you and the activity. The first thing is that personal banking nowadays is rarely private or 'secret' as you put it. An account will be opened, it will be in your name and registered at your address and so you are directly connected to it. When creating a company the bank account will be held in the company name, not your name. You also have options to complicate the company structure to add further layers of confidentiality to it such as Nominee Directors, Nominee Shareholders, Trusts or Foundations which move you further away from the activity.

As @xzars states either way unless you go to great expense and create a structure that genuinely and legally reduces your taxes in Denmark then simply not declaring income will mean you are evading taxes.

 

[Bandito]

My yearly turnover is not so much right now, but I expect that it will greatly increase over the next couple of years. What would be the benefit in having a company over just having a "secret bank account?"

Do you do dropshipping or importing your goods into Denmark, or is it digital goods/services.

 

[TurnedToRobot]

Always setup a company which is holding the bank account. It makes the entire thing much more secure.

 

[myhand]

always put a company setup between the bank and yourself and even better make sure you get nominees appointed or you go the dark route!

 

[Joeydiaz]

Do you do dropshipping or importing your goods into Denmark, or is it digital goods/services.

I only sell Digital goods... no physical products and no clients in Denmark.

 

[Joeydiaz]

Always setup a company which is holding the bank account. It makes the entire thing much more secure.

Any recommendations for combinations that would work for someone like me? In terms of where to place a company with nominees appointed and where to get bank?

I have written The bank of Georgia with the hope of getting a bank there, and will need to talk with them about possibility of connecting it to a company and which countries they accept. In either case I am assuming the bank needs to be in a non-CRS since I can't remove my residency from Denmark (because I own property here) without some radical changes.

 

[Joeydiaz]

I am thinking mostly to create a kind of "temporary solution" of company (since everyone is insisting on this being the best route and I trust this) and bank account, that can allow me to receive payments without my country of residency know about it for the 2 years or so, while I work to establish something more permanent , such as completely removing my residency from Denmark etc.

All concrete recommendation/combinations are highly appreciated. Thank you!

 

[Joeydiaz]

always put a company setup between the bank and yourself and even better make sure you get nominees appointed or you go the dark route!

Thank you Khan, any combinations of company countries and banks that you recommend from your own experience?

 

[Bandito]

Go for Cyprus non dom company & Cyprus bank account, and get out of Denmark asap SKAT can be really strict.
they don't even have to prove you're doing tax evasion they will just send you a tax bill if they are thinking you are doing something wrong.

 

[myhand]

I agree you can setup a Cyprus company non resident and a Cyprus bank account this works really good, and yeah, get out of the country if possible to avoid too much trouble. Otherwise setup the entire thing with darks and cross your fingers no one will ever find out.

 

[Joeydiaz]

I agree you can setup a Cyprus company non resident and a Cyprus bank account this works really good, and yeah, get out of the country if possible to avoid too much trouble. Otherwise setup the entire thing with darks and cross your fingers no one will ever find out.

Thank you... I don't think Cyprus will work though as they are part of CRS. and I will have to still be in this country residency wise for a few years.

I am thinking of opening up a bank in Georgia under a company name with nominess for this . Now I just have to find out where to set up the company... Any suggestions are appreciated.

Go for Cyprus non dom company & Cyprus bank account, and get out of Denmark asap SKAT can be really strict.
they don't even have to prove you're doing tax evasion they will just send you a tax bill if they are thinking you are doing something wrong.

Thank you... I don't think Cyprus will work though as they are part of CRS. and I will have to still be in this country residency wise for a few years.

I am thinking of opening up a bank in Georgia under a company name with nominess for this . Now I just have to find out where to set up the company... Any suggestions are appreciated.

 

[JohnLocke]

I am thinking of opening up a bank in Georgia under a company name with nominess for this . Now I just have to find out where to set up the company... Any suggestions are appreciated.

If you take a look at the forum, maybe Google the forum for Georgia you will find a lot of useful information which you may consider before you take a final decision about your plans.

 

[Bandito]

Nothing is free in this world, Nominee service cost money, Yearly company fees cost money and accounting cost money.

Think about it you could start a Danish IVS for 100€ and you can do the accounting yourself, you can get a business account with Lunarway for 12€ per month.

If you aren't making money yet I would go this route, when you're business is running and making profit I would start thinking about going offshore.

 

[JohnLocke]

@Bandito did you read what his main problem is?

My main goal is to be able to receive payments for online products I offer, usually from bank transfers (transferwise) and paypal, without having anyone know about it- such as my residence country etc.

 

[Bandito]

@Bandito did you read what his main problem is?

Didn't see that, but as I stated going offshore isn't cheap.

 

[TravelRose]

Always setup a company which is holding the bank account. It makes the entire thing much more secure.

I need a privat off sh. Account in UK with iban, my favorite brocker d´ont accept IBAN outside Europe, nor Malta, or Cyprus.........