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Need an offshore company

Discussion in 'Offshore Company formation' started by Igor, Feb 24, 2018.

  1. Igor

    Igor New Member

    Hello!
    I have read this and some other forums, but it hasn't made me any closer to understanding what is that what I need. So I decided to post my situation here and hopefull someone would lead me in the right direction or even offer the service that will suit my needs.

    So my partner and I are starting a service related website which will operate in Me xico. We both live in this country, and both are foreigners, from different countries in EU.
    The website will be totally legal and will hopefull grow big. The latter can provoke some unwanted attention from crime. So it looks wise to keep off the papers.
    Also we would like to own the company in shares: 50.00001% and 49.99999%

    So far the conclusions that we've made:
    1. we need an offshore company
    2. we need a nominee service
    3. we need a bank account

    But I don't know which jurisdiction will suit more, if we need nominee service(or 2, since there are 2 of us), what type of company should we consider?

    Any advice, discussion or service offers will be greatly appreciated.
    Thank you.
     
    hiju, diablo, Admin and 1 other person like this.
  2. Milky Moon

    Milky Moon Offshore Research & Development. Business Angel

    Your 'business case' is privacy, so no real need for drastic measures.

    A simple Cryprus Ltd will do. Getting a Bank of Cyprus bank account will be easy. Nominee director & shareholder services are available, giving you the desired level of privacy.
     
  3. void

    void Active Member Entrepreneur

    I'm I right that such a setup will result in:
    1) tax men in their 'home' EU countries will know about them being UBOs of Cyprus bank account (and shareholders of a given Cyprus company)
    2) the income of their company will be subject of Mexican tax system (whatever it means actually)
    ?

    Not saying this should be a problem for them, just checking if I understand what you are suggesting. I'm not sure what "shareholder service" means and if this might be the reason I'm wrong with the above.
     
  4. Milky Moon

    Milky Moon Offshore Research & Development. Business Angel

    Read "Nominee director & shareholder services" as: Nominee director services and nominee shareholder services.

    The goal is to provide a privacy friendly setup. Webhosting will be paid by the Ltd. The director and shareholder will be a Cyprus based lawyer.

    As for reporting to Mexico:

    International Automatic Info Exchange to commence in 2017

    only passive Non-Financial entities (NFEs) will be obliged to disclose their controlling persons - which, in most cases, are the ultimate beneficiary owners (UBOs) of such entities. The criterion for determining whether the NFE is active or passive is the following: active NFE is an entity whose gross income for the preceding calendar year or other relevant reporting period consists of no more than 50% passive income (i.e. dividends, interests and royalties), and less than 50% of the assets held by the NFE during the preceding calendar year or other relevant reporting period are assets that produce or are held for the production of passive income. All the other NFEs which do not qualify as active ones are considered to be passive NFEs.

    The controlling person (natural persons), to be reported automatically by passive NFEs, are the following persons: for companies and cooperative societies: UBO(s), who ultimately owns or controls a legal entity through direct or indirect ownership of 10% and more shares in the company`s capital (for Cyprus – 25% and more).

    https://www.oneaccount.com/onev3/pdfs/CRS_Active_Decision_Tree.pdf
    Active NFE as a solution for CRS
    https://www.moorestephens.co.uk/Med...amily-offices-Common-Reporting-Standard_1.pdf

    page 4: "The distinction between active and passive NFEs is important because financial institutions such as banks will collect data from their accountholders and will report controlling persons of passive NFEs if they are resident in a CRS jurisdiction."
     
  5. Igor

    Igor New Member

    Well, that's a surprise, all my previous reading was leading me to Belize.
    If I read correctly, we would not be reported by NFE because our income won't be passive at all the Ltd won't have no passive assets either.
    I have also read that Belize companies are not reporting their persons in control.
    Having checked the price for companies in Cyprus and Belize - they are about the same. Is there any advantage of Cyprus over Belize that I'm overlooking?

    Thank you very much for your help!
     
  6. Milky Moon

    Milky Moon Offshore Research & Development. Business Angel

    I guess you would like a bank account to go with your company?
     
  7. Igor

    Igor New Member

    Yes, to be able to pay for hosting, domain, local advertisement, etc.
     
  8. Admin

    Admin Forum Moderator The Forum Cleaner

    As already mentioned here a Cyprus company with banking in Cyprus and nominees is what you may be looking for. It's an easy setup and you get some sort of privacy for your business activity. Even better, it's difficult to sue a Cyprus company and cost a lot of money which most often keeps creditors away should that be a issue at any time.
     
    W4rhol likes this.
  9. Emily Rimlins

    Emily Rimlins Member Entrepreneur

    Hey Admin!

    This comment hit me. Why/how is it difficult to sue a Cyprus company?
     
  10. Admin

    Admin Forum Moderator The Forum Cleaner

    It's generally speaking more difficult to sue a Cyprus company compared to a local company, more costs for lawyers and International collecting services on top of this if you have have been involved in such cases then you may know what I mean.
     
  11. diablo

    diablo Trusted Member Mentor Group Business Angel

    It's the same problem with companies in the Baltics i.e. Latvia and Romania, impossible to win a law sue over these enties without very deep pockets!
     
  12. hiju

    hiju Active Member Mentor Group Entrepreneur

    all this is easy to accoplish. Where did you end up setting up your company if I may ask?