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

Discussion in 'Offshore Company formation' started by leavingcanada, Feb 13, 2019.

  1. leavingcanada

    leavingcanada Mentor Group Mentor Group

    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...
     
  2. leavingcanada

    leavingcanada Mentor Group Mentor Group

    I thought this forum would be more active, anyone here?