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Setting Up an Offshore Company While Being a French Tax Resident

ImABotnet

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Hello everyone,

I’m new to the forum and looking for advice on setting up an offshore company. To introduce myself briefly, I’m a French entrepreneur managing several online stores.

My goal is to open an offshore company along with a bank account to optimize taxation. However, since I’m still young, I don’t plan to leave France for now. I understand that as long as I remain a French tax resident, my income will still be subject to French taxation, even if my company is registered abroad.

I’ve heard about the possibility of using a "nominee director" to run the company. Is this a viable solution in my situation? What are the best options for someone in my position?

Additionally, my stores operate with Stripe, which might influence the choice of country or business structure.

Also, do you know of any reliable websites or services that handle the entire company and bank account setup process for me, without requiring me to travel to the country in question?

Thanks in advance for your advice and recommendations!
 
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It is very difficult for you to optimize taxes with an offshore company while living in France. There are already many threads on this topic.

You should speak with a tax advisor near you and get local assistance. As long as you are not willing to relocate, you have very few chances of avoiding taxation.
I don't understand why opening a company under a nominee's name, along with a linked bank account, wouldn't allow me to avoid taxation, considering that nothing would directly tie me to my online business anymore.
 
You are still the company owner, and therefore, you are the one who will be taxed.

The tax authorities will look for substance, meaning a real office with electricity, heating, internet, and everything a proper office needs in the country where your company is registered, along with employees. You won’t achieve this by appointing nominees, they are simply ignored!

You can find alternative solutions in mentor group gold, where there are extensive discussions on this topic and potential solutions. Otherwise, the answer is simple: your plan won’t work.
 
I don't understand why opening a company under a nominee's name, along with a linked bank account, wouldn't allow me to avoid taxation, considering that nothing would directly tie me to my online business anymore.
Because you still own the company. You will simply be taxed on the dividends.

And then, the French will claim that you are the effective manager of the company as well. If you then tell them that there is a guy from Absurdistan managing it in the Antarctica, they won't believe it and tax you. You would need to have an office somewhere with employees and pay tax there. Then, the French would only tax you on the dividends you receive.

But really. If you don't want to leave France, stat there and pay taxes there. It is much better. Trust me.
 
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Do you think the alternative solutions available in the Gold Group are viable and align with what I'm looking for?
Yes, there are solutions. But what you are looking for is a mental coach that convinces you to leave France by highspeed train or ultrasonic airplane tonight. That one is not available in Mentor Group Gold.
 
Oui, il existe des solutions. Mais ce que vous cherchez, c'est un coach mental qui vous convaincra de quitter la France en train à grande vitesse ou en avion ultrasonique ce soir. Celui-là n'est pas disponible dans Mentor Group Gold.
Yeah, but I’m between 20 and 25, and my girlfriend is still studying, so it’s complicated... When your whole life is built in one country, leaving isn’t that easy ...
 
Pointless. Don't waste your time.

Focus on growing your business legally. You won't like what happens if the French tax authority somehow figures out that you've been committing tax fraud.

When the time is right, you can move abroad. As an EU citizen, Malta and Cyprus offer some quick, easy, and interesting options.

Yeah, but I’m between 20 and 25, and my girlfriend is still studying, so it’s complicated... When your whole life is built in one country, leaving isn’t that easy ...
Sacrifices and compromises are part of relationships. You are making a compromise and sacrificing some money by staying in France to be with your girlfriend right now.
 
Yeah, but I’m between 20 and 25, and my girlfriend is still studying, so it’s complicated... When your whole life is built in one country, leaving isn’t that easy ...
Do you think it will get easier later on? Probably not. You will be back in 2 year and complain that her job is in France. And then in 5 years, you complain abou the kids in France.

If you are happy there, you can also pay some taxes there. You get free education and somebody needs to pay your girlfriend's univeristy too.
 
Do you think it will get easier later on? Probably not. You will be back in 2 year and complain that her job is in France. And then in 5 years, you complain abou the kids in France.

If you are happy there, you can also pay some taxes there. You get free education and somebody needs to pay your girlfriend's univeristy too.
I think you guys are about to change my mind—I’m already checking out apartments in Malta! But that makes me wonder... Why do people set up companies in places like Delaware, Hong Kong, Seychelles, Belize, or Saint Vincent and the Grenadines? I assume most of them don’t actually move there, so what’s the point?
 
I think you guys are about to change my mind—I’m already checking out apartments in Malta! But that makes me wonder... Why do people set up companies in places like Delaware, Hong Kong, Seychelles, Belize, or Saint Vincent and the Grenadines? I assume most of them don’t actually move there, so what’s the point?
Delaware is mainly used for big companies you want to sell later. Most of them operate in the US (elsewhere) and pay tax in the state they operate.

US LLCs in Wyoyming and New Mexico are used by people that aer constantly travelling or are located in countries in Africa, etc. where they are unable to tax you. This is not the case for European countries.

Hong Kong can be used for passive income or active income if the company is not managed from Hong Kong. You need to make sure that you are not being liable to tax elsewhere (same as above).

Sant Vinvent and the Grenadines are not that much useful as you cannot get a bank account. But it can be used for asset holding, like trademarks etc.
 
Okay, so if I understand correctly, living in Malta for more than 6 months per year, having a company registered in Malta, and setting up a holding company abroad would allow me to pay only 5% tax on my profits. If that's correct, this is definitely the best solution for me. I generate around €1M in annual revenue with a very high profit margin of approximately 90%.
 
Okay, so if I understand correctly, living in Malta for more than 6 months per year, having a company registered in Malta, and setting up a holding company abroad would allow me to pay only 5% tax on my profits. If that's correct, this is definitely the best solution for me. I generate around €1M in annual revenue with a very high profit margin of approximately 90%.
Yes, I think with that revenue, this is the best way. You can then move elsewhere later on when you are sure the French won't ask for anything.

And with that much profit, you definitely want to have a clean solution. The fines are just too high.
 
Okay, so if I understand correctly, living in Malta for more than 6 months per year, having a company registered in Malta, and setting up a holding company abroad would allow me to pay only 5% tax on my profits. If that's correct, this is definitely the best solution for me. I generate around €1M in annual revenue with a very high profit margin of approximately 90%.
Pretty much yes.

You would set up a fiscal unit of which the Maltese Ltd would be part and act as the fiscal representative.

A clearer description of the tax status is in this article.

In general, Malta is a good decision in my eyes. A nice place and a safe, trustworthy corporate structure.
I think you guys are about to change my mind—I’m already checking out apartments in Malta! But that makes me wonder... Why do people set up companies in places like Delaware, Hong Kong, Seychelles, Belize, or Saint Vincent and the Grenadines? I assume most of them don’t actually move there, so what’s the point?
Can be different cases. Some people set them up for bad reasons because they do not conduct enough research.

Delaware is popular based on its history and the fact that many of the big multi-national companies are registered there. However, it brings almost nothing to the table. The fees are much higher than comparable states and the processing times are very slow - unless you pay even more fees to get things done faster. But Delaware is stable and easy to work with for corporations, so it's also recommended by VCs.

Hong Kong is cool for targeting Asia, it's a very reliable jurisdiction with strong banking, many quality CSPs, and the taxes are acceptable even when you're not applying for offshore status.

Seychelles, Belize were cool when you could call up a Cypriot bank and get a same-day IBAN. Unfortunately, they are difficult to obtain banking for now, and global data exchange makes their value much lower (if you are just trying to hide something, which was still possible until not so long ago, in the grand scheme of things). But they can be effective for holding IP or other assets, for activity where you do not need many bank transfers, providing services where you might be paid in crypto but still need an entity, etc.
 
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Delaware is popular based on its history and the fact that many of the big multi-national companies are registered there. However, it brings almost nothing to the table. The fees are much higher than comparable states and the processing times are very slow - unless you pay even more fees to get things done faster. But Delaware is stable and easy to work with for corporations, so it's also recommended by VCs.
Delaware has extensive case law and the courts are known for their consistency and predictabily. That's why many investors favour Delaware as it minimizes risks. If you want to sell a company or need investors, it does make sense to incorporate in Delaware.
 
If you are in France, how about a residence in Andorra? 10% maximum tax. They also speak French there. Unfortunately, all immigrants are now forced to learn Catalan and all those who are already here. I find that impossible and perhaps an exclusion criterion.
 
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If you are in France, how about a residence in Andorra? 10% maximum tax. They also speak French there. Unfortunately, all immigrants are now forced to learn Catalan and all those who are already here. I find that impossible and perhaps an exclusion criterion.
Indeed, Andorra is also a solution, and even more advantageous in terms of taxation than Malta, as the tax rate is only 2% if I run online stores with revenue mainly from abroad. It is also very close to my home, less than a 4-hour drive. However, I haven’t found anything stating that speaking Catalan is mandatory …
 
Indeed, Andorra is also a solution, and even more advantageous in terms of taxation than Malta, as the tax rate is only 2% if I run online stores with revenue mainly from abroad. It is also very close to my home, less than a 4-hour drive. However, I haven’t found anything stating that speaking Catalan is mandatory …
You can simply google that this is the case, unfortunately.:confused:

"One significant update is a new Catalan language requirement for residency permit renewals. This is part of Andorra’s recent Law on Official Languages, aimed at fostering integration. For the first renewal, applicants need a basic A1 level of Catalan, and for the second renewal, an A2 level will be required." ja334¤¤#
 
"One significant update is a new Catalan language requirement for residency permit renewals. This is part of Andorra’s recent Law on Official Languages, aimed at fostering integration. For the first renewal, applicants need a basic A1 level of Catalan, and for the second renewal, an A2 level will be required."
Those are pretty lenient requirements and something you should consider doing anyway when relocating somewhere (at least where English isn't an official or de facto official language). A1 is basically being able to ask where the bathroom is and how much an apple costs. A2 is only a little bit more advanced.

It's just unfortunate that it's a pretty useless language to know outside of Andorra and parts of northern Spain. On the other hand, close enough to Spanish that it might be beneficial for learning Spanish. Since OP is French, the effort to learn Catalan is less than those who speak no Romance language at all.

I wouldn't worry too much about the language requirement.
 
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