what level of turnover at which a Caribbean company becomes untrustworthy ?

[troubled soul]

For total Clean business...only goal is tax saving....

what level of turnover at which a Caribbean company becomes untrustworthy ? and you can not trust local small bank with that level of money ?

As example , any round figure like $10 million or something after It....It is better to register company in Reputable country and pay tax? What is your figure for this ?

What are your thought on this ?
Yes I know many big name with billion turnover running company in Caribbean without any problem .....My question is regarding the average businessman .
Thanks

 

[Sols]

Untrustworthy to whom?

Where in the Caribbean? Trinidad and Tobago? Cayman Islands? BVI? Jamaica? Puerto Rico? There's a huge difference between the islands.

 

[troubled soul]

As example Company in Cayman Island,
If I run my web hosting business from Cayman Island.....And hit the $10 million+ turnover ...Is it advisable to still use Cayman Island company or Move to another location with reputation ?

 

[Sols]

There's no magical threshold at which a company in any jurisdiction by default becomes untrustworthy (if it wasn't already). If anything, the bigger a company is, the more trustworthy it tends to be viewed.

Some companies (especially in Europe) find invoices from tax havens challenging and you may need to prove economic substance (e.g. tax residence). So depending on what you do and what you sell, you might need to set up subsidiaries in some regions or countries. For example, a Cypriot subsidiary of your Cayman Islands company for European companies to deal with.

There might be cost savings associated with relocating staff somewhere else or setting up subsidiaries in certain regions/countries to contract with certain payment processors (quite common in EU).

 

[JohnnyDoe]

The location of a company has nothing to do with its trustworthiness.
However, it’s usually harder to run a scam through a company registered in a small island.

 

[wellington]

The location of a company has nothing to do with its trustworthiness.
However, it’s usually harder to run a scam through a company registered in a small island.

Surprise me, there's so many dodgy MLM/Ponzi's operating through companies registered there.

 

[JohnnyDoe]

Surprise me, there's so many dodgy MLM/Ponzi's operating through companies registered there.

Such companies’ bank accounts go through a ton of DD and their operations are closely monitored. Hedge funds are a different thing, and anyway Ponzis are good.
If you want to run a scam you should setup a company in continental Europe, like a GMBH in Germany or a SPA in Italy, also UK PLCs are good for this purpose.

 

[Sols]

Surprise me, there's so many dodgy MLM/Ponzi's operating through companies registered there.

Those are small by comparison. The vast majority of fraud and money laundering happens in US, UK, and EU, with local companies and local banks.

The difference is that US, UK, and EU all stand in unison and point at small nations and call them money laundering tax havens.

 

[JohnnyDoe]

Those are small by comparison. The vast majority of fraud and money laundering happens in US, UK, and EU, with local companies and local banks.

The difference is that US, UK, and EU all stand in unison and point at small nations and call them money laundering tax havens.

Money laundering 101

 

[troubled soul]

Sorry in advance for silly question....
But if some Tech company with potential to reach the Apple or Google level....
Is it advisable for them to start company in Cayman and trust the Cayman local bank with high bank balance ....
Thanks

 

[JohnnyDoe]

Sorry in advance for silly question....
But if some Tech company with potential to reach the Apple or Google level....
Is it advisable for them to start company in Cayman and trust the Cayman local bank with high bank balance ....
Thanks

No, you should setup a Corp in California and start the capital rising show. Call it Rainbow Tech Solutions or QueerTech Innovations for better results.

 

[Sols]

Sorry in advance for silly question....
But if some Tech company with potential to reach the Apple or Google level....
Is it advisable for them to start company in Cayman and trust the Cayman local bank with high bank balance ....

Paralysis by analysis. You're never going to get anywhere if you are forever stuck worrying about future hypotheticals where you suddenly become one of the largest companies in history.

Apple, Microsoft, and Google became some of the world's largest tech companies and they didn't care about setting up in a tax free environment. They set up advanced tax structures later.

None of those companies could have become what they are if they had started out in the Cayman Islands. But that's not because of the reputation or stability of banks in the Cayman Islands. It's because the talent pool and access to VC funding is nearly zero there.

 

[uranium]

I think you can setup tax free company in cayman and apply for a corporate swiss bank account as long as you can satisfy their minimum balance requirement something like 500k minimum

 

[2fire]

Paralysis by analysis. You're never going to get anywhere if you are forever stuck worrying about future hypotheticals where you suddenly become one of the largest companies in history.

Apple, Microsoft, and Google became some of the world's largest tech companies and they didn't care about setting up in a tax free environment. They set up advanced tax structures later.

None of those companies could have become what they are if they had started out in the Cayman Islands. But that's not because of the reputation or stability of banks in the Cayman Islands. It's because the talent pool and access to VC funding is nearly zero there.

Would you say that no matter how good is your business, you won’t get such funding like in USA in another country like Switzerland for example ?

 

[JohnLocke]

I think the comparisons are about the Caribbean and not Europe. That's also what the thread topic indicates! Of course, you can get funding for a company in Switzerland, or any other country in Europe if the idea is good. It's probably just easier in the USA, and it becomes extremely difficult, as 'sols' already said, if you start the company in some kind of tax haven.

 

[2fire]

I think the comparisons are about the Caribbean and not Europe. That's also what the thread topic indicates! Of course, you can get funding for a company in Switzerland, or any other country in Europe if the idea is good. It's probably just easier in the USA, and it becomes extremely difficult, as 'sols' already said, if you start the company in some kind of tax haven.

I am apologize for off topic. I just searched keyword about financing. I have many years business in Switzerland and somehow I was struggling to rise extra capital to expand my factory in eastern country (EU). So, was curious to ask for opinion.