Subscription Consulting business setup

dxt3r

New Member
Hello, I have a subcription based consulting business I'm planning to move offshore as no physical goods are exchanged, im planning this setup, any recomendations or criticism would be appreciated.

The business i run is a 200 USD a month subscription so no large transactions, but revenue is around 20-25k a month. We are based in Mexico.

1.- Setup offshore company (haven't decided location) to hold bank account or EMI and recieve payments (maybe merchant account? im not familiar with this)
2.- Host website offshore?
3.- setup personal bank accounts for me and business partners at some location where there is no TIEA, Maybe belize corps for partners?
4.- wire the proceeds of the business once a month to business partners and myself to personal (corporate?) accounts.
5.- Spend money using credit card from offshore bank. (this is really important)

Anyone running something similar? Mexico taxman has CFC rules and all OECD related laws.
 

darkster

Trusted Member
Business Angel
Mentor Group
Commercial Service
As you already mentioned Mexico has implemented every rule already like the EU has which is a problem when it comes to tax reduction.

What you need is to consult an accountant in Mexico which probarly can help you reduce tax, I can't imagine that it's not possible where you live.

Otherwise, there are some models like the discussed "homless mexican" that you open a company & bank account for, this can work for you or you setup a company with real office and bank account in Cyprus or Georgia where it is possible to gain 0% corporate tax and for Cyprus at least it is possible to get a bank account in Cyprus.

You can spend the money with the included Visa card which no one will ask question about.

Alternative is Hong Kong but it's difficult to get a bank account in HK. I know of a guy that succeeded with the account opening in Cyprus for his Hong Kong company just for a few days ago, the process took 9 weeks baw3##
 

OffCap

Active Member
Hello, I have a subcription based consulting business I'm planning to move offshore as no physical goods are exchanged, im planning this setup, any recomendations or criticism would be appreciated.

The business i run is a 200 USD a month subscription so no large transactions, but revenue is around 20-25k a month. We are based in Mexico.

1.- Setup offshore company (haven't decided location) to hold bank account or EMI and recieve payments (maybe merchant account? im not familiar with this)
2.- Host website offshore?
3.- setup personal bank accounts for me and business partners at some location where there is no TIEA, Maybe belize corps for partners?
4.- wire the proceeds of the business once a month to business partners and myself to personal (corporate?) accounts.
5.- Spend money using credit card from offshore bank. (this is really important)

Anyone running something similar? Mexico taxman has CFC rules and all OECD related laws.
The one thing you've got working for you is Mexico sucks at enforcing their rules (unlike countries like Netherlands, Germany, US, Australia, etc.)

That being said TIEA really aren't a concern for you. You need to be worried about AEOI/CRS.

Mexican CFC rules are fairly easy to avoid, their corporate residency rules and source income rules are more of an issue.

Hard to make this legal without spending a fair amount of money, probably pretty easy to get away with it if you structured using the right jurisdictions.
 

dxt3r

New Member
thanks for your replies, indeed mexico sucks at enforcing. I will explore more options, I had considered the homeless man option, its a fairly common tactic even in local companies here.
 

Latest Threads

Top