Seychelles / Cyprus setup?

[paradigm]

I'm looking into a Seychelles corp + Cyprus bank setup. I recently came across this kind of legal structure - and would like to make some sense of it.


Please let me know what your thoughts are. What is the point of the Cyprus company? The "One share hold"... the "Trust Document''?


Who has real ownership here?


Our offshore Companies and Bank accounts allow you to trade internationally tax free and without the need to file accounts. We will provide you with an IBC Company with a 3 currency Bank account at a major European Bank with nominee Director who is a qualified business lawyer. Our share holding facility is simple and offers great confidentiality and protection to our clients. For description see the diagram below.


Seychelles IBC Company issues one share to Cyprus Company.


Cyprus Company sends Beneficial Owner of Seychelles Company a Confidential Trust Document proving ownership of the Seychelles Company

 

[redeye]

Sounds like a simple offshore company structure. The real owner is the guy who pay the bill to set this all up!

 

[plunk]

What's best, a Seychelles or Cyprus setup or a combination of both?

 

[JohnLocke]

What's best, a Seychelles or Cyprus setup or a combination of both?

While many today go for a combination i.e. Seychelles Holding & Cyprus trading company then it may not be what suites you, each offshore company setup is different and need to fit to each individual clients needs.

 

[adjust]

Cyprus bank account and Seychelles company, it is the same over and over again here... isn't there any alternatives? How much is it to go this route?

 

[undercover]

Please let me know what your thoughts are. What is the point of the Cyprus company? The "One share hold"... the "Trust Document''?
Who has real ownership here?

The point is to make use of the DTA that is between Cyprus and the Seychelles. If you managed to use them you can trade and invest ttax free!

 

[undercover]

Cyprus bank account and Seychelles company, it is the same over and over again here... isn't there any alternatives? How much is it to go this route?

Why look for an alternative if you have the perfect solution for in front of you thumbups

 

[JohnLocke]

The point is to make use of the DTA that is between Cyprus and the Seychelles. If you managed to use them you can trade and invest ttax free!

Second that.. most are not aware of the benefits of the DTA (Learn more about DTA in Cyprus) the different countries (so offshore countries) agree to.

 

[robertisnt]

What is the benefit of DNA, i mean why would you register a company in Cyprys, if you still need to pay tax in cyprys and your home country and the sum of those 2 taxes is the same as the tax in your home country?


I do not see there any tax benefit?


There is only benefit, if you DTA allows you to pay taxes just in Cyprus providing you own a Cyprus resident company.

 

[JohnLocke]

Well the DTA can actually be used to avoid that you have to pay tax in your home country and in Cyprus. With the DTA in place, you have only to pay Tax in Cyprus if the company is resident and you can proof that the money is earned in the Cyprus company, sometimes you will even need to proof that the company is controlled and managed in Cyprus as well. The same applies when we speak a Seychelles / Cyprus company setup, you will have to pay tax (which is actually 0%) in the Seychelles if the business takes place there.

 

[phantomoffshore]

When you use the DTA wise you can benefit from it and avoid to pay any tax legally Have been doing this for years.


Actually you can eleminate the tax in an onshore company when a offshore company in a no tax offshore jurisdiction is holding the shares of the onshore company and the two countries have DTA in place.

 

[forcet]

I have a Seychelles corp and in the process to form a Cyprus company... will go with the Seychelles holding and Cyprus trading model described in various threads here

 

[robertisnt]

With the DTA in place, you have only to pay Tax in Cyprus if the company is resident and you can proof that the money is earned in the Cyprus company, sometimes you will even need to proof that the company is controlled and managed in Cyprus as well.

Thanks. Do people usually need to declare that (no-tax) income in their country (Europe), if they have proof they do not need to pay taxes for that money.


It is far safer, not to declare the income, so taxman doesn't know if you own the company. I am pretty sure but not certain, taxman cannot sue people for such doing since they effectively don't break any law or avoid any taxes. If taxman shows up, you just show them the papers, and everything is fine.

 

[nastathin]

Thanks. Do people usually need to declare that (no-tax) income in their country (Europe), if they have proof they do not need to pay taxes for that money

You need to do that in most EU countries otherwise the tax man will come after you:frustrate:

 

[JohnLocke]

Thanks. Do people usually need to declare that (no-tax) income in their country (Europe), if they have proof they do not need to pay taxes for that money.
It is far safer, not to declare the income, so taxman doesn't know if you own the company. I am pretty sure but not certain, taxman cannot sue people for such doing since they effectively don't break any law or avoid any taxes. If taxman shows up, you just show them the papers, and everything is fine.

Most will not decalre the tax in their home country even if they are required to do so according to local laws. If you want to do proper tax optimizing you will want to consult a local tax adviser together with a CSP who knows what they are doing in the offshore jurisdiction of your choice.

 

[JohnLocke]

You need to do that in most EU countries otherwise the tax man will come after you:frustrate:

Second that, but it does not mean it has to be bad to do so. If you offshore company is constructed correct you will properly not face any issues.

 

[offshorehosting]

How can I make sure my offshore company is constructed correct?

 

[phantomoffshore]

How can I make sure my offshore company is constructed correct?

Interesting question So, how can we make sure our offshore company is constructed correct?

 

[JohnLocke]

Bi detailing the requirements to the CSP who is gonna incorporate the offshore company. Furthermore you will need a CSP who has staff available that knows something about International Tax Laws and Legal advise.

 

[TwoFaces]

Actually you can eleminate the tax in an onshore company when a offshore company in a no tax offshore jurisdiction is holding the shares of the onshore company and the two countries have DTA in place.

Hi phantomoffshore. How can it possibly work if you are a resident of one of the many western countries? Many big countries (such as the UK and USA) perceive your income as a whole i.e. it does not matter where the holding company is located. If you are resident of the UK (for example), all your income is taxable and must be declared. No?