Saint Vincent LTD vs LLC

[damr]

Hello there (this is not tax-advice thread and no bank accounts are needed)

Note 1) SVG company is never going to get a bank account anymore, I know and I am ok with that, all my customers pay me in crypto.
Note 2) SVG company is not a tax-resident in SVG (and that's why it has 0% tax), but there still exists obligation to pay corporate tax in the domicile where the UBO lives and controls and manages the company from, I know and I am ok with that.

The reason I am making this post is that I would like to ask you please following questions:

1) What is the difference between these types of SVG entities: LTD vs LLC ? Which one is better for online business?

2) Is there any records/account-keeping obligations or yearly audits etc? I am interested to have a company with minimum maintenance requirements and minimum paperwork.

3) Globally online generated profits (coming from countries and from residents other than SVG) are not taxed in SVG and the company is not SVG tax resident at all, is that correct please? I know I need to pay tax in the jurisdiction where I am managing and controlling my company from, I am ok with that. I just only want to confirm if the SVG company has no tax-obligation in SVG jurisdiction at all (or if this has been somehow changed recently maybe?) and if SVG authorities will not require any paperwork or tax from me at all.

4) What is the final total price of the incorporation plus first year maintenance (including virtual address, nominee director + nominee shareholder). If some agency offers me the setup, what kind of price for this is "normal" and "fair" which should I expect?

5) What is the yearly costs and company maintenance in following years? If some agency offers me the setup, what kind of price for this is "normal" and "fair" which should I expect?

The background of this setup:

I am working online for my customers, something like web-design. And when I am signing a contract with my customer I don't want to sign it as a natural person. So I want to have offshore company (and I have heard SVG is fast & cheap choice) which will be entering into the contract with my customer (and not me directly). The customer will pay for my job in crypto, and this will be my SVG-company corporate profit. But then my SVG company will transfer this money to my EU-company (because my SVG-company will be always outsourcing the actual work to my EU-company). So then my EU-company will have the crypto corporate profit and tax it all in EU. I am not trying to save money on tax, I live in EU so I am ok with paying EU tax. I just want to have an entity for entering into the contract with my customer instead of me personally. I don't want to enter into the contract and I don't want my EU-company enter into the contract. I want to have SVG-company which enters into the contract with customer and my SVG-company has all the business responsibilities. The work will be outsourced from my SVG-company to my EU-company based on mutual outsourcing agreement between SVG-company&EU-company, and it will be normally taxed in EU. So I am interested into easy-maintenance SVG entity which I don't need to be worried to enter into any contract without exposing myself to any risks.

Thank you for your advices opinions and tips. Damr.

 

[Martin Everson]

Ok this is more CSP questions. I really don't want to just answer just first half of your questions. I would contact Turner Little or similar companies.

@James Turner

 

[damr]

Ok this is more CSP questions. I really don't want to just answer just first half of your questions. I would contact Turner Little or similar companies.

@James Turner

What is CSP please?
If you can answer only some questions (or their parts) I would be thankful for that too

 

[JustAnotherNomad]

If your offshore company becomes taxable in your local EU country due to its effective place of management, then it will also be subject to local accounting laws.
I really don't see any advantage with such a setup, it will only create problems.
There's also a risk that you can't just transfer 100% of the income to the EU company due to transfer pricing restrictions.
It's just a bad idea.
You would be better off setting up a second EU company. If that's too expensive in your country, look into a UK Ltd. - at least that's something that's usually well understood by the tax authorities.

 

[damr]

If your offshore company becomes taxable in your local EU country due to its effective place of management, then it will also be subject to local accounting laws.
I really don't see any advantage with such a setup, it will only create problems.
There's also a risk that you can't just transfer 100% of the income to the EU company due to transfer pricing restrictions.
It's just a bad idea.
You would be better off setting up a second EU company. If that's too expensive in your country, look into a UK Ltd. - at least that's something that's usually well understood by the tax authorities.

Thanks for the info.

And what's the difference please between St Vincent LTD and LLC ? I thought both of them are limited liability, how are these two different from each other?

 

[JustAnotherNomad]

I have no idea. Are you sure there are even two different entity types and it's not just different websites using different names for the same thing?

 

[damr]

I have no idea. Are you sure there are even two different entity types and it's not just different websites using different names for the same thing?

I came here to ask about this

 

[Martin Everson]

And what's the difference please between St Vincent LTD and LLC ?

Where did you see a St Vincent Ltd company being shown to make you think it is different from an LLC?

 

[Sols]

Broadly speaking, the difference between SVG BC ("SVG LTD") and SVG LLC is the same as the difference between US S Corp and US LLC, or to a lesser degree comparable to UK LTD and UK LLP.

SVG BC is a regular taxable entity. They are taxed at 30% on their worldwide income (IIRC, double check).

SVG LLC is a pass-through, tax neutral entity. It's a way to keep a tax free entity on the island while still appeasing EU and other foreign pressure on removing SVG's tax haven status.