creating an offshore trading company

Hi forum,
although Bitcoin etc are not in the spotlight of the public at the moment:


I want to trade cryptocurrencies at Binance with my money and money from friends.
In my naïve imagination its like a trading company.



- form Cypress trading company, with nominee and share holders?
- form Binance (business) account with the cypress trading company
- receive EUR into my cypress trading company bank account
- move funds to Binance account, buy BTC, trade, make more BTC
. move FIAT from Binance to Cypress bank account.
- pay taxes in Cypress for the capital gains
- distribute the remaining Euros via wire transfers to my customers
- use remaining gains to fund prepaid credit cards
- use the Cypress bank account credit card to spend the money




goals:
atm my personal data should remain hidden; I´m based in Germany.
avoid regulation hassle / overregulation;
I have no problem with paying taxes for the Cypress Company;



Do you think this setup is possible and makes any sense?
I´m open when it comes to the country of the "trading" company.


any hints are welcome.
 

UScorp

Building Trust
Entrepreneur
Mentor Group
Hallo, Cyprus is not a bad choice . I doubt that this will work in all points mentionend eg Accepting third party funds for trading ...
 

OffCap

Active Member
Hi forum,
although Bitcoin etc are not in the spotlight of the public at the moment:


I want to trade cryptocurrencies at Binance with my money and money from friends.
In my naïve imagination its like a trading company.



- form Cypress trading company, with nominee and share holders?
- form Binance (business) account with the cypress trading company
- receive EUR into my cypress trading company bank account
- move funds to Binance account, buy BTC, trade, make more BTC
. move FIAT from Binance to Cypress bank account.
- pay taxes in Cypress for the capital gains
- distribute the remaining Euros via wire transfers to my customers
- use remaining gains to fund prepaid credit cards
- use the Cypress bank account credit card to spend the money




goals:
atm my personal data should remain hidden; I´m based in Germany.
avoid regulation hassle / overregulation;
I have no problem with paying taxes for the Cypress Company;



Do you think this setup is possible and makes any sense?
I´m open when it comes to the country of the "trading" company.


any hints are welcome.
Two things that immediately stand out to me before getting into anything else:

1. You're from Germany (that's bad as the Germany tax department are horrid)

2. You're wanting to deal with crypto (this is bad because most banks hate crypto transfers)

With respect to what you're describing, forming a company is fairly easy, opening a bank account is a fair bit harder so this is the first point you might encounter difficulty and might need to go elsewhere aside from Cyprus. Btw nominees in the traditional form of the word will do nothing to protect your identity from governments. Most banks in most places are going to report you to Germany via AEOI/CRS at the end of the year so this is a concern.

Now, assuming you can get an account open receiving funds in EUR is probably not going to be an issue. Transferring those funds to Binance could be an issue depending on the bank they may not allow this transfer and may shut down the account. This gets much more likely when you're moving funds back from Binance to the account, at this stage the chances of account closure are rising and that could cause you issues.

Sending money to your clients probably isn't an issue.

If you're spending the money on personal expenses you'll be legally taxable in Germany on all those gains (you'll probably have been taxable in Germany at the company level as well though we'd have to dive into the particulars of the situation to say for sure).

What you're suggesting is risky and not without consequence.

You'd be better off:

1. Finding banks in advance that will be ok with your crypto activities (you should be able to do this if you show solid documentation)

2. Ensuring your structure is either fully legal so Germany doesn't company after you when it's reported or it's not reported to them for whatever reason (my recommendation is always the former but some people go with the later), or leaving Germany to go elsewhere where it's more tax friendly

Based on the way you choose to deal with #1 and #2 will determine how the rest can play out.
 
Hi @<<snippet>> and thank you very much for the answer!
seems like I have to do some thorough research before starting a new company...

prio 1 for me would be to remain "under the radar for Germany" authorities as a person.
At this moment I wouldn´t need to reverse the fund back to euro on a bigger scale.
It is more like a side project for me and I would be glad to get a company credit card use this for my personal spending...

thanks again!
 

jpearson

New Member
I'm looking to do something similar except that I don't need any bank account / fiat transfer. I'm just looking to form a company that would own the Binance / Bitmex account instead of me as a person. Based on my research, I'm thinking that Seychelles is the best jurisdiction for this. Ideally, I would pay the service provider in crypto. @Idontknowyet1995 what's your reason for choosing Cyprus? I'm happy to join my efforts with you in researching this if this thread isn't fruitful. Thanks in advance!
 
hey @jpearson that sounds great.

I´ve mentioned Cypress only because I´ve heard a lot about it and thought it might be an easy route. Seems like this is not valid anymore...

Seychelles would be ok for me, actually I like to travel, so I don´t have any preferences. as long as the company and my name are not connected.

What would be your thoughts about converting BTC to Fiat?
Is Bitmex still the exchange that provides enough liquidity?

Happy to join forces ;-)
 

jpearson

New Member
I don't need to convert crypto to fiat. I can purchase DAI or another stablecoin if needed. Although the liquidity is currently limited, I can invest in traditional financial instruments by proxy using crypto derivatives. Bitmex is highly liquid as far as crypto markets go, you can go back to the last auto-deleveraging event to measure that.
 

darkster

Trusted Member
Business Angel
Mentor Group
Commercial Service
Setup a company in the Seychelles if possible with darks and you are good.
 

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