UK LP with Nevis as limited partner - what do you think?

leavingcanada

New Member
I've researched most Caribbean countries (Nevis, BVI) and couldn't find a solution for a bank and credit card processor.

I contacted many offshore company providers and was given this great advice today. What do you think about the below excerpt and recommendation to set up UK LLP and Offshore company as shareholder?

"
It is hard to find any good e-commerce solutions with the most popular offshore jurisdictions such as the one you chose, BVI as well as others like Nevis, Belize, Seychelles, Panama etc. Most people with these offshore companies are forced to work with very expensive aggregators rather then having direct merchant accounts with the bank involved. These aggregators are often run by fraudsters who will steal your funds once your reserves have hit their maximum amount around the month 6 mark, so we refuse to deal with them any more. I have seen too many people lose money to these hucksters.

Banks in Belize, BVI, Panama etc that historically used to offer e-commerce merchant accounts now find themselves cut off from processing Visa transactions for e-commerce sites. Visa has cracked down on business owners in high tax countries using merchants accounts owned by offshore companies and is now requiring a real physical presence in all of these zero tax jurisdictions. And if that was not bad enough, even if you were able to find a local bank and was willing to establish whatever local presence they required, they would be forced to share your account information under the CRS scheme mentioned above anyway.


Therefore a better solution to all these problems relies on an onshore-offshore "hybrid" set up with a UK LP owned by a Nevis or other offshore company as the limited (passive investor) partner and a UK based (active) general partner company. This allows the LP to be non taxable but to easily obtain a UK based merchant account with PayPal and/or Stripe, Shopify etc, which are the most popular e-commerce platforms and in the case of Stripe very low cost (2.75%) with a powerful developer tool kit. Profits are distributed tax-free to the offshore company bank account via the UK company's account.


We would set up the offshore company (limited partner) as the 100% owner of the Limited Partnership with a nominee director and an account in Puerto Rico, which is really the only credible banking jurisdiction where offshore tax exempt company accounts can be easily set up and which does not report under CRS. This is because it is a US terrritory and they USA did not join up since they already receive all their citizen/resident tax info through their FATCA law that was set up several years before the OECD's CRS. The UK company as the general partner will earn very little in fees and all non-UK sourced profits can be moved tax free to the offshore limited partner. "

Any insight is appreciated...
 

leavingcanada

New Member
totally disappointed in this forum. Paid for Mentor group and got absolutely 0 help or feedback. Cancelling membership.
 

platothefish

New Member
Hi,
I have just joined and this is the sort of idea I am looking at. Can I ask what you ended up doing in the end?

regrads
P
 

Martin Everson

Offshore Consultant
Business Angel
We would set up the offshore company (limited partner) as the 100% owner of the Limited Partnership with a nominee director and an account in Puerto Rico, which is really the only credible banking jurisdiction where offshore tax exempt company accounts can be easily set up and which does not report under CRS.
I would not describe Puerto Rico as a credible banking jurisdiction in any shape or form. The bankrupt country is on its third governor in two weeks. It's a joker territory to deal with. Are you simply trying to avoid paying any taxes and avoid CRS?

The UK company as the general partner will earn very little in fees and all non-UK sourced profits can be moved tax free to the offshore limited partner. "
What you are suggesting falls under BEPS. You are creating an artificial construct for profit shifting purposes and to avoid taxes. Please read the forum on topics such as BEPS.
 

platothefish

New Member
What you are suggesting falls under BEPS. You are creating an artificial construct for profit shifting purposes and to avoid taxes. Please read the forum on topics such as BEPS.
Actually, this isn't for that purpose. In my case all of the income would be declared through the UK tax HMRC as offshore income. There is no tax avoidance. The main purpose here is to prevent or at least discourage spurious litigation. I have had a series of issues all of which I have won, but they are time consuming and costly. Even when I win the costs it never fully covers the costs nor the time it takes.
 

Martin Everson

Offshore Consultant
Business Angel
Actually, this isn't for that purpose. In my case all of the income would be declared through the UK tax HMRC as offshore income. There is no tax avoidance. The main purpose here is to prevent or at least discourage spurious litigation. I have had a series of issues all of which I have won, but they are time consuming and costly. Even when I win the costs it never fully covers the costs nor the time it takes.
Who was talking to you...lol? I was giving an answer to the OP (i.e leavingcanda) who I even quoted and you jumped in conversation like the reply was meant for you and I somehow got your situation wrong....lol How weird is that of you....stay of the drugs dude. conf/(%
 

platothefish

New Member
So why wait from March to now to reply to him? I think it was a fair assumption as I was the last person to contribute on here. Are you going to be helpful or just make rude comments?
 

Martin Everson

Offshore Consultant
Business Angel
Read carefully again your response to the reply I was giving to someone else :rolleyes:. Maybe start next time by explaining what your question is and I will always try and answer. It is far better than keeping the question and facts in your head and then jumping on a reply to someone else with the question still in your head and not written on the thread...lol.

Good night
 

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