Offshore Company for Online Business

[onofftronic]

Hi,


First of all, I'd like to say a big thank you to all off you guys who made a site like this possible. Hats down for all the knowledge and information that you provide.


So, onto my question...


I'm starting a new online dating company and for the last two years I was building the business in my own country. Now I want to expand the business to other countries BUT I want to avoid paying taxes as much as possible.


Please see below for the questions one of my team member gave me in hopes I can find someone to answer them.


Anyone who can answer this I will be greatly thankful. It's my dream to create an offshore business and I have put all my money in this project and company. Answering this would save our project and company.


So, this is my situation:


We have an online dating website. We sell monthly subscriptions for our website. All of our business is online worldwide over a web site and services will be sold mainly to people in USA and England, probably to Australia and Europe too. We are European residents. I would like to create an offshore company and get maximum reduction of the tax that has to be paid but still keep my privacy. I would like my customers to pay by credit card for their monthly subscription. I would also like that my offshore company is not required to have any accounting requirements and that I can freely use the income of the company in whatever way I want.


These are the issues I am having:


What is the best jurisdiction to register our offshore company?


Can I avoid to pay corporate taxes?


Can I avoid to pay personal income taxes?


Which bank would be best for my offshore company?


Can I get a merchant account for my offshore company?


Can I get a 3rd party processor merchant account (2co.com, Moneybookers, Alertpay) for my offshore company?


Could you please suggest me which jurisdiction and which package would be best for my situation?

 

[JohnLocke]

Welcome aboard.


A Cyprus company will solved the tax issue or at least give you the lowest tax (only 10%) within the European union, also it will be easy to apply for a merchant account and bank account for this company since Cyprus is a member of the European Union it will be possible to apply with any European Payment Service Provider for your business.


The only requirement is of course that your website is Visa / MC compliant and that it is legit and can be accepted by the MAP.


Once the Merchant account has been established with the Cyprus company you can change the owner structure to avoid the most of the 10% tax if not all. I would recommend you to do this later after your website is in production to avoid any extensive due diligence check from your MAP.


Marfin Laiki Bank in Cyprus would be the only one I think that would accept your business in Cyprus, otherwise there are plenty of other banks in Europe that won't have any issues with this business activity.


I hope the above will help you a little.


To find the costs to incorporate a Cyprus company see the below link:


Cyprus Company

 

[onofftronic]

Thank you for your reply.

Once the Merchant account has been established with the Cyprus company you can change the owner structure to avoid the most of the 10% tax if not all.

Can you elaborate more on this?


So, if I understand you correctly, in the worst case scenario I would have to pay 10 % corporate tax to Cyprus, afterwards when I transfer the money from the company's bank account to my personal account at my country I'll have to pay income tax at my country. Can you confirm this?

 

[JohnLocke]

You will always have to pay personal tax if you transfer money from any company account (so an offshore company) to your personal account, this isn't avoidable. What you are looking into is to get the money out using a Debit or Gift card or similar "tools" I can't get it closer, sorry.

So, if I understand you correctly, in the worst case scenario I would have to pay 10 % corporate tax to Cyprus,

A Cyprus company can be registered non resident and for that reason don't have to pay any tax it's simply exempted from tax, so it can't be registered for VAT if that would be an requirement.

 

[onofftronic]

Ok I understand.


Are there any other taxes in the Cyprus package, other than the 10 % corporate tax? VAT?

 

[JohnLocke]

No not at all.. You can find the Cyprus tax reform here Cyprus Tax Reform

 

[JohnLocke]

Also you may want to read the fiscal advantage of a Cyprus company which stil lis relevant reading Fiscal Advantages in Cyprus

 

[onofftronic]

Ok thanks for your answers. I will seek some more information and then when ready incorporate the company and start the business.

 

[offshoremax]

Can I get a 3rd party processor merchant account (2co.com, Moneybookers, Alertpay) for my offshore company?

They are OK processors and all of them will accept a Offshore company inthe Seychelles, Cyprus, BVI, Panama, Belize etc. but for Adult business (dating is Adult) you may approach CCBILL, Epoch, Verotel or SegPay they have all specialized in Adult payment processing and they may as well take offshore companies.

 

[offshoremax]

Can I avoid to pay personal income taxes?

Only way to do so is using a Gift card which you may load and use at the ATM's, minus, you can only load it with small amounts. Alternative would be the widly known FBME Tanzania anonymous card, however, they will charge you an arm for their service and they are complicated to open an account with.

 

[offshoremax]

What is the best jurisdiction to register our offshore company?

For your purpose, I would say Cyprus with nominees, let the nominees sign the merchant acount so you won't have any troubles. What Admin indicated was to have a Seychelles Holding own shares in the Cyprus company so you will avoid any corporate tax. I have a similar setup today.

 

[JohnLocke]

Agree with offshoremax, that's one possible solution to solve the tax issue and get a real offshore setup with low to no tax to be paid.

 

[onofftronic]

Great info offshoremax!

Only way to do so is using a Gift card which you may load and use at the ATM's, minus, you can only load it with small amounts. Alternative would be the widly known FBME Tanzania anonymous card, however, they will charge you an arm for their service and they are complicated to open an account with.

What are your opinions about using a Mastercard or Visa to whitdraw money from the Cyprus bank account? Is that safe to do?


I've seen quite a lot of advertising for anonymous cards. Judging by the comments on the forums, some of them look legit. Are these cards really 100 % anonymous? Is it true that the authorities will not be able to trace me?


Let's suppose that I get a completely anonymous card for my offshore company's bank account. If I use that card to spend money on things that are not needed for the company's benefit (for example, I go to the grocery store and buy food for my family or clothing), wouldn't that be a problem for the Cyprus authorities? In my country that would be a big problem, because the company's money can be only spent for things that the company needs in order to do or improve its business. Isn't it the same if the company is incorporated in Cyprus?

 

[clemens]

What are your opinions about using a Mastercard or Visa to whitdraw money from the Cyprus bank account? Is that safe to do?

Sorry for joining this thread but I thought I would give you some info.


Generally speaking to withdraw money from a Visa or Mastercard from a Cyprus bank account is as safe as from any other bank account i.e. UK, Gergman or US bank account. Your question may be, is it safe to withdraw money from a Cyprus bank account and avoid any trailing logs that could reveal information about me and my super secret bank account in Cyprus, the answer is, NO it is not safe, don't even think about it nor the famous Tanzania BS card from FBME will help you there.


What you will be looking at is to withdraw money only at ATM's outside of your country and only then if you can be sure that no savilian camera's are in place. Better would be to use a GIFT card as mentioned here to withdraw small amounts or to travel to Cyprus and not take more than EUR 10000 in cash with you.

 

[onofftronic]

Your question may be, is it safe to withdraw money from a Cyprus bank account and avoid any trailing logs that could reveal information about me and my super secret bank account in Cyprus, the answer is, NO it is not safe, don't even think about it nor the famous Tanzania BS card from FBME will help you there.

What if the bank account is in the Seychelles or any other country where they guarantee anonymity? Wouldn't I be untracable even if I use the card at an ATM in my country of residence?

 

[JohnLocke]

I'm afraid that nothing in today's world is untraceable, even not if someone from the more shady parts of this business area may tell you so. There is no solution that will give you a "guaranteed anonymity" this does not exists any longer, if someone or a business claims anything different let us know and I will assure you it is a fake.


The only way you can protect your privacy is to use some of the suggest methods by jpay OR simply "convert" to an expat where you are not an resident of your own country any longer, that would be a secure solution.


I wish I could suggest you a solution for what you are looking for, but unfortunately I can't.


There are more complicated processes to do something similar to what you want but they are as mentioned complicated and as well not guaranteed to be secure.

 

[clemens]

There are more complicated processes to do something similar to what you want but they are as mentioned complicated and as well not guaranteed to be secure.

You think about loan agreements right?

 

[JohnLocke]

You think about loan agreements right?

Well, yes.. but not with a simple IBC setup something more professional like a Trust (maybe foundation) in Uruguay alternative in the Seychelles.

 

[onofftronic]

Great info! Very informative.


I'm still wondering about this:

Let's suppose that I get a completely anonymous card for my offshore company's bank account. If I use that card to spend money on things that are not needed for the company's benefit (for example, I go to the grocery store and buy food for my family or clothing), wouldn't that be a problem for the Cyprus authorities? In my country that would be a big problem, because the company's money can be only spent for things that the company needs in order to do or improve its business. Isn't it the same if the company is incorporated in Cyprus?

I guess in countries where accounting and book keeping is not required, they don't care where you spend your company's money. Is it the same if the company is incorporated in Cyprus?

 

[kim]

I guess in countries where accounting and book keeping is not required, they don't care where you spend your company's money. Is it the same if the company is incorporated in Cyprus?

You need to keep things seperated, what you are asking for here has nothing to do with an so called anonymous debit card (which for obvious reasons don't exists)! You can form a simple Seychelles IBC which don't require anthing of the mentioned ie. no book keeping, accounting, fiscal reporting, 0% tax etc.. and you can take out the money as you like it will not care anyone what you are doing and you are doing so. BUT when you transfer money from your Seychelles IBC to your private bank account you will pay personal income tax!