Legit Setup or Overcomplicated? Feedback on OCI’s Foundation + IBC Structure

[anceps]

Hey everyone,


I'm running a small but growing digital agency based in Germany. The core of my business is:

• Connecting brands with influencers (commission-based, like a talent manager)
• Some video editing and content consulting as additional services

I'm now looking into offshore structuring, mainly for privacy, long-term tax efficiency, and more flexible banking as my clients are global. I've been speaking with Offshore Companies International (OCI) and got a very comprehensive email from them laying out a proposed structure:


Seychelles Private Foundation to hold
a Panama / Seychelles / HK IBC, which would carry out the business
Myself acting as a "consultant" to the company (instead of owner/director)
Nominees to reduce CFC exposure


The guy I spoke to seems very experienced and gave a detailed explanation about Germany’s CFC laws and why a private Foundation + IBC combo is the "cleanest" way to go. The pitch is that the Foundation owns the company, so I’m not "controlling" a CFC directly, which might help with deferral or privacy.


My questions to the group:

1. Does this structure (Foundation + IBC with nominee director) actually hold up in practice, or is it just offshore theory that doesn’t fly under scrutiny?
2. Has anyone here used OCI and can vouch for them (or warn against them)?
3. They mentioned Hong Kong for banking/merchant accounts — is that still viable in 2025?

Not looking to hide income, just exploring compliant ways to structure things efficiently and privately, especially with future relocation in mind.


Appreciate any honest thoughts or provider recommendations. Open to DMs too if you have specific experiences you can’t post publicly.

 

[CyprusLawyer101]

Of relevance here is the usual content of CFC rules making reference to shareholders "directly or indirectly controlling the CFC" " Indirectly " is key here.
You can check the German CFC rules to see how they phrase this as well as see how such rules apply to foundations etc.
In general structuring out of such jurisdictions and thinking that because you received information on a way to work around a particular provision makes it a solid proposal should not be the way to go. There are various anti-avoidance rules, especially from a jurisdiction like Geermany, which can catch you from almost every angle.
The problem with this type of advice, is that you can implement it and feel secure and you may live your whole life without any problem arising especially for small companies. The real issue though is, what would be the result if your structure is scrutinized by the tax authorities. And in such cases it might be better to have no "smart" attempts in place as they do not appear good in front of the authorities and they may also be raising other questioning on offences against you. If you are truly interested to a solid structure, engage them for professional advice on how to successfully do it and then you are good to go.

 

[aniglo22]

Germany does not recognize trusts or foundations established outside the EEA.
This setup won't work .
Just read §§ 7–14 AStG , you would still trigger CFC rules due to the low taxation threshold.
And also read the Steueroasenabwehrgesetz .
Even if you place 100 nominees and set up 100 trusts behind it, it won’t change anything.
Just move out of Germany and stop wasting time on setups that clearly won't work

 

[anceps]

Thanks a lot for the honest replies, I really appreciate the critical perspectives here.

I’ve been going back and forth on this structure, and here’s where I currently stand:

My goal is not to avoid taxes indefinitely or build some shady empire. I’m a small one-person agency still based in Germany (unfortunately), and the idea behind setting up offshore is primarily privacy, safety, and long-term relocation planning.

The current proposed setup (Seychelles Foundation + IBC with nominee director, using a crypto-friendly payment processor like APA) was presented to me as a way to separate business income from my personal tax residency, until I can relocate.

Here’s what I’m wondering now:

• Would this structure be legally “tolerable” as a temporary bridge, as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore? Or is just having such a structure already enough to trigger serious consequences, even if no funds are received locally?
• Or are there safer “middle-ground” structures (or maybe even onshore options like Estonia, etc.) for people like me, who are in a kind of transition phase?

I’m aware that Germany has strong anti-avoidance and CFC laws. I'm not asking for loopholes, just trying to figure out how risky it really is to park income offshore until a legal relocation is complete (without moving money into the German system in the meantime).


Would really value thoughts from anyone who’s walked this path before, or who knows what setups have actually worked (or failed) under scrutiny.


Thanks again.

 

[daniels27]

To be honest, I think the question here is wrong. You should ask how long you can fly under the radar in Germany until the catch you. Or how can you obscure the whole setup that in case of a check, they cannot figure out that is actually going on. But running a company from Germany without paying taxes sounds like building a round square.

Any setup is basically an adminssion for a crime. And if you ask me, if one ever flies, it will cost you more in legal fees and troubles to make it fly under scrunity.

 

[aniglo22]

Thanks a lot for the honest replies, I really appreciate the critical perspectives here.

I’ve been going back and forth on this structure, and here’s where I currently stand:

My goal is not to avoid taxes indefinitely or build some shady empire. I’m a small one-person agency still based in Germany (unfortunately), and the idea behind setting up offshore is primarily privacy, safety, and long-term relocation planning.

The current proposed setup (Seychelles Foundation + IBC with nominee director, using a crypto-friendly payment processor like APA) was presented to me as a way to separate business income from my personal tax residency, until I can relocate.

Here’s what I’m wondering now:

• Would this structure be legally “tolerable” as a temporary bridge, as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore? Or is just having such a structure already enough to trigger serious consequences, even if no funds are received locally?
• Or are there safer “middle-ground” structures (or maybe even onshore options like Estonia, etc.) for people like me, who are in a kind of transition phase?

I’m aware that Germany has strong anti-avoidance and CFC laws. I'm not asking for loopholes, just trying to figure out how risky it really is to park income offshore until a legal relocation is complete (without moving money into the German system in the meantime).


Would really value thoughts from anyone who’s walked this path before, or who knows what setups have actually worked (or failed) under scrutiny.


Thanks again.

It won't work because any company you establish will be considered a tax resident in Germany.
As a one-person agency, the company will always be managed and controlled from Germany -> therefore tax resident in Germany (§ 1 KStG)
You also won't gain any privacy benefits, as you are required to report the company to the tax authorities.
Even 'onshore' setups, such as in Estonia, won't work just read one of the DTAs.
For it to work , you would need to establish real substance in Estonia .

It will not work ..

 

[Frankie]

Germany does not recognize trusts or foundations established outside the EEA.
This setup won't work .
Just read §§ 7–14 AStG , you would still trigger CFC rules due to the low taxation threshold.
And also read the Steueroasenabwehrgesetz .
Even if you place 100 nominees and set up 100 trusts behind it, it won’t change anything.
Just move out of Germany and stop wasting time on setups that clearly won't work

What this guy said ^^

Don't play games with the German tax authority. Leave to a tax haven as soon as you can.

Another tip: Don't waste time and a lot of money on complicated setups. Many beginners think that if they over-complicate the setup it will help them avoid tax. WRONG.
At the end of the structure there is a bank and that bank will report the UBO - YOU - to the German tax authorities.
Your setup can be very simple, just move to a low tax country.

 

[daniels27]

It won't work because any company you establish will be considered a tax resident in Germany. As a one-person agency, the company will always be managed and controlled from Germany -> therefore tax resident in Germany (§ 1 KStG)
You also won't gain any privacy benefits, as you are required to report the company to the tax authorities.

He can recruit his father or any friend and have them running a company in South America while he is "only doing customer service" for one or two years. If he never did file a tax report where he was running the company, he may get around for a couple of years. But it will be a DIY setup which he was to do alone and keep shut. No lawyer will ever put anything in fire for such bs.

 

[aniglo22]

He can recruit his father or any friend and have them running a company in South America while he is "only doing customer service" for one or two years. If he never did file a tax report where he was running the company, he may get around for a couple of years. But it will be a DIY setup which he was to do alone and keep shut. No lawyer will ever put anything in fire for such bs.

I'm not sure if this will work, as he could come under suspicion of 'Scheinselbstständigkeit' if he's just working for the South American company, which could trigger an audit.
There are just too many factors that could trigger an audit.
This setup would fail immediately in an audit .
And I don't think German companies are so keen on receiving invoices from a South American company especially when communication is in German.

 

[daniels27]

I'm not sure if this will work, as he could come under suspicion of 'Scheinselbstständigkeit' if he's just working for the South American company, which could trigger an audit.
There are just too many factors that could trigger an audit.
This setup would fail immediately in an audit .

Yes, he would have to run an US LLC on top of that and then fake the income to be coming from 10 companies. Then, he would pay some tax and get around.

But honestly, why don't you just move to Italy for 2 years? Food is much better there.

 

[aniglo22]

Yes, he would have to run an US LLC on top of that and then fake the income to be coming from 10 companies. Then, he would pay some tax and get around.

But honestly, why don't you just move to Italy for 2 years? Food is much better there.

Yeah, faking invoices is a serious crime in many jurisdictions.
It could lead to fraud charges (invoice forgery ) and tax evasion + money laundering .
This seems to me more like a prison speedrun .

 

[daniels27]

I mean not faking invoices. I mean the US LLC bills to 4 different dudes in South America. Just make it look like the income is from different entities.

But anyway, I think we all agree, any setup will only work as long as it flies under the radar. He would have to have somebody else running it and then declare some income somehow to keep the dogs quiet. But I would not recommend.

 

[drysponge]

as long as no money is brought into Germany, no local bank account is involved, and nothing is declared or deducted onshore?

https://en.wikipedia.org/wiki/Common_Reporting_Standard

without moving money into the German system in the meantime

unfortunately this is not a thing, germany does not have a remittance based or territorial tax system, you owe tax on your worldwide income, you owe this tax and finding a way to hide that is tax evasion.

if you are okay with tax evading for a little while, get paid in crypto and dont use an exchange, anything else will give you heartburn.