Offshore company and bank account for yacht charter business.

[Viktor S]

Hello everyone!
Could you please give me any advice on following:
1) Company in which offshore jurisdiction is more suitable for international yacht chartering business? (Mediterranean and Caribbean regions).
2) Do I have any chance to open an account in any reputable bank for an offshore company without enormous initial deposit?

I am EU citizen currently based in Russia,will be dealing mostly with Russian residents. Nature of the business is yacht charter brokerage (collect payments from clients - keep commission fees - transfer charter fees to the yacht owners). Most of the clients pay from offshore accounts in different jurisdictions, the same as majority of yacht owners have an accounts offshore in order to accept charter payments.
I am not even sure that I can legally use an onshore entity as intermediary between offshore companies without headache and thousand of questions from local tax authorities even if I decide to pay tax on my commission in full.

Any input would be appreciated! Thank you in advance!

 

[Martin Everson]

I am EU citizen currently based in Russia,will be dealing mostly with Russian residents.

Less than zero chance. I can just hear the phone line going dead midway as you say the above to a banker followed by the nail in the coffin i.e funds will be coming from offshore accounts .

1) Company in which offshore jurisdiction is more suitable for international yacht chartering business? (Mediterranean and Caribbean regions).

Cayman Islands company.

2) Do I have any chance to open an account in any reputable bank for an offshore company without enormous initial deposit?

By reputable you mean HSBC as opposed to EPB . If you lower your expectations and change your risk profile a little you should be fine . Find a Russian friendly bank first however.

 

[niggashit]

Less than zero chance. I can just hear the phone line going dead midway as you say the above to a banker followed by the nail in the coffin i.e funds will be coming from offshore accounts .



Cayman Islands company.



By reputable you mean HSBC as opposed to EPB . If you lower your expectations and change your risk profile a little you should be fine . Find a Russian friendly bank first however.

I would say New zealand.

Trident Trust - Trust and Fund Administration Services

""
• Incorporation of New Zealand companies and acquisition of shelf companies in various jurisdictions

• Liaison with international banks to open, maintain and operate offshore bank accounts for New Zealand foreign entities and shelf companies

""

 

[Viktor S]

Hi Martin! Thank you for your reply!

I can just hear the phone line going dead midway as you say the above to a banker followed by the nail in the coffin i.e funds will be coming from offshore accounts .

Seems like my basic knowledge of offshore industry is very outdated Could you please give me a hint on where HNWI keep their money our days if it's not an offshore banks?

Cayman Islands company.

Thanks! I thought about Cayman Islands but only if I have a chance to have an account in a reasonably good bank (certainly not EPB )
Cayman company costs a fortune to establish and maintain so there is no point to go Cayman if only EPB agrees to open an account for me

Quite a few years ago I had an account in Luxembourg bank for St. Kitts and Nevis LLC and account in Latvia for Scottish LP which was very easy to open those days. But looks like a lot of things have changed in the industry in the last years.

By reputable you mean HSBC as opposed to EPB . If you lower your expectations and change your risk profile a little you should be fine .

What is wrong with my risk profile? I am a legitimate business, I don't sell human organs or nuclear weapons . I can explain to the bank any movement on my account very clearly as well as provide a MYBA Yacht Charter Agreement for every transaction. Authenticity of that agreement can be even checked online on MYBA internet site.

Find a Russian friendly bank first however.

Do you mean that it's not a good idea to mention Russians or CIS at all?

Would it be better idea to introduce myself to the bank as a EU resident and to say that I have no idea from where clients will come from and which kind of accounts they will pay from? Anyway they can't either track my location or identify nationality of UBO behind offshore company which made a payment to my account?

 

[Martin Everson]

Could you please give me a hint on where HNWI keep their money our days if it's not an offshore banks?

HNWI book their assets traditional offshore centres. UHNWI use a family office and much more complicated secretive arrangements which may typically include an in-house Bank & Trust based in the Caribbean.

Thanks! I thought about Cayman Islands but only if I have a chance to have an account in a reasonably good bank (certainly not EPB )

You can always run your business idea by Cayman National Bank or CIBC Bank. They deal with Yacht chartering businesses every day.

What is wrong with my risk profile? I am a legitimate business, I don't sell human organs or nuclear weapons .

lol...problem is any HNWI with money in Russia who will be chartering yachts will probably have a connection to Kremlin. The HNWI's that don't have a connection Kremlin tend to be the ones that end up in jail in Russia for tax evasion or some other charge .

Do you mean that it's not a good idea to mention Russians or CIS at all?

Banks are de-risking as Russiaphobia and sanctions are real . Anything Russia related will be subject to enhanced due diligence so be prepared to be patient with any new banking relationship. Mention Russia at your peril. However most private banks will accept Russian clients if it is simply for wealth management with a clear mandate to manage a portfolio of assets. The client has to have no Kremlin connection or Instagram account with pic of them shaking Putin's hand . Doesn't help your situation I know .

Would it be better idea to introduce myself to the bank as a EU resident and to say that I have no idea from where clients will come from and which kind of accounts they will pay from?

Yes its better to say you are EU person. Also you can't tell a bank you have no idea where client will come from or where money will also....lol. If you do you move your business into high risk category automatically and you will not have any luck with account openings.

Just re-consider whether you want to operate from Russia...why on earth you think Russians are buying second passports in droves along with second residences. They know firsthand the current situation and future situation.

Russian elite flocks to buy Maltese passports

Even Roman Abramovich has problems and had to get an Israeli passport recently...lol and he still can't get into UK and he owns Chelsea football club....lol .

Roman Abramovich's new Israeli passport WON'T guarantee him a backdoor to Britain | Daily Mail Online

 

[JohnLocke]

You will need to consider using a professional service for your business setup, exactly as @Martin Everson already nicely pointed out! Using some sort of mass producing offshore company agent will not bring you anything good!