Where can i form an offshore company - then move over there to work for the company

[robertisnt]

Summary: I want to form and offshore company in a appropriate country and then move over there to work for this company.


I suppose most people here who have offshore companies, work for the company from their home country.


I want to form an offshore company, but with a significant twist. I need to be allowed , by law of offshore country, to work from there. I will basically move there over a period of 5-6 months per year, and I will go back home. Since during the time I work for my company, I will still be resident of my "old" country I should be able to set my salary (per laws of country where my company is incorporated in) to zero.


I do online marketing services for several USA based companies. More precise it is affiliate marketing. I do the business directly from my pc, and I am getting paid by these USA based companies.


So I am not sure if that counts as International business, even I don't do any business with companies from the country I incorporated in. Because I still perform services/work inside this country.


Specifically if we talk about a Belize based IBC:


1) Can I work from my Belize company office (I am not resident of Belize) if I have IBC. I am getting


2) If I stay long enough to become a resident of Belize, could I still operate as tax free IBC? So I do have to pay income taxes and dividends.


3) Is there a way to avoid becoming a resident of Belize, even if I stay like 6 months per year over there?

 

[tiea-hunter]

I'm new here so forgive me if this is not the proper reply. I hope it helps anyway.


Facts on Immigration Procedures


If you are planning to travel to Belize and you are not a Commonwealth, Mexican, North American (U.S.A.), Costarican, Austrian or national of a member state of the European Community you require a visa. Any Belizean Consulate or Embassy can issue one at the cost of $25.00 U.S. currency. This visa is valid for thirty(30) days only. If there is not a Belizean Consulate in your country you can obtain a visa through the nearest British Embassy or you can still travel to Belize and the Immigration Officer at the Phillip Goldson International Airport may issue one for the same cost and duration.


While citizens from the European Community do not require visas for travel to Belize, citizens of Bangladesh, Bolivia, Colombia, China, Angola, Brazil, Afghanistan, Lebanon, Cuba, India, Libya, Pakistan, Peru, South Africa and nationals of the former USSR require previous approval for a visa from the Ministry of Human Resources, Department of Immigration.


After being thirty (30) days in Belize and you still require more time to finish your business, you need to contact the nearest Immigration Office to get an extension, paying BZ $25.00 for every thirty days extended period.


Any individual can apply for permanent residence after having one (1) year legal residence fee in Belize on a continuous basis. Permanent residence fee is $100.00 and a deposit is needed which can range from


$100.00 to $1,200.00 depending on the nationality of the applicant. This deposit may be refunded three (3) years after residency is granted. The application form is to be accompanied by two pass-port photographs of each member of the family wishing to travel to Belize and the back of the photograph should be endorsed with his or her name and signed by a Justice of Peace. In addition you should attach to the petition your personal bank statements as well as current Medical and Police Records.


To acquire nationality status the applicant should have permanent residence and or be a legal resident for a minimum of five(5) years in accordance with the Belizean Nationality Act of 1981 (Section l0); there is also a provision for the registration of minor children along with the applicant (Section 12). All necessary evidence should accompany the application to avoid delays.

Work for the company as director but noable to set my salary (per laws of country where my company is incorporated in) to zero.

Why should that be any issue? Most countries will allow such thing.

 

[robertisnt]

Let me explain it better. Keep in mind that Belize is just an example.


From Wikipedia: "Typically the IBC cannot conduct business in the country of incorporation."


Does "conduct business in the country of incorporation" means, i cannot do business with local Belize companies and individuals from Belize, or that i also cannot work for my company from Belize. My work is info product creation. So i would like to go to Belize, rent an apartment,and for here for my IBC 3-4 month per year.


Where owners of offshore companies, typical work and manage that company from. If i didn't explained this well I mean where the value/product creation is located. The offshore country, home country or third one.

Why should that be any issue? Most countries will allow such thing.

Thanks you post was very helpful. I think i need a work visa.


It is a problem in some countries. For example, in countries close to the country of mine the minimum salary is around 50% of the average salary.

 

[robertisnt]

Admin


Can i both reside and manage a Cyprus company from Cyprus. and have 10% tax rate, since all income derives from outside of the Cyprus? Is cost of living in Cyprus less than 1500 EUR per month?


Also is there any other country than Cyprus where i can reside, and own an IBC(or any other offshore company form), providing that all income of mine derives from outside of that country?

 

[tiea-hunter]

From Wikipedia: "Typically the IBC cannot conduct business in the country of incorporation."

So it means that you can't for instant move to the Seychelles and do business from there, or, does it mean that you can move to the Seychelles form an IBC but can't conduct business locally (in the Seychelles) but offer your services to the rest of the Globe is OK?

 

[fionix]

Can i both reside and manage a Cyprus company from Cyprus. and have 10% tax rate, since all income derives from outside of the Cyprus? Is cost of living in Cyprus less than 1500 EUR per month?

I asked them about this for some time ago and it isn't any problem to manage a Cyprus company and only pay 10% corporate tax even if you live there. I have been visiting Cyprus and I tell you it is expansive compared to the UK at least.

 

[robertisnt]

..........

 

[robertisnt]

I asked them about this for some time ago and it isn't any problem to manage a Cyprus company and only pay 10% corporate tax even if you live there. I have been visiting Cyprus and I tell you it is expansive compared to the UK at least.

The most important, do you have right to reside there as a tourist and work/manage your company. It seems to be a very easy solution, since i do not need any visa for this. I can stay 3 months every 56 months. That is quite fine, because i am not that hard working


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What people usually do, live in their home countries and the still have offshore companies managed by nominee directors. But who work for these companies, and where people who work for the company (either full time or part time).


Typically do UK tax system doesn't mind if you work from home (like digital product selling) for your company, but you do not report it to them.


I have read on few forums that around 1500E is quite enough to live comfortable, providing you do not bring your family with you.


Also pretty solid villas for rend can be found for a s little as 500E per month.

 

[JohnLocke]

Admin
Can i both reside and manage a Cyprus company from Cyprus. and have 10% tax rate, since all income derives from outside of the Cyprus? Is cost of living in Cyprus less than 1500 EUR per month?


Also is there any other country than Cyprus where i can reside, and own an IBC(or any other offshore company form), providing that all income of mine derives from outside of that country?

You can without any issue own a Cyprus company also if you are a Cyprus resident, the company can simply just not be registered non resident as long as you are the director and shareholder of the company and as well as you live in Cyprus. If you still want it to be a non resident company you will need foreign nominee's i.e. shareholder and director.


You will be liable for personal income tax in Cyprus (Inland Revenue Department - FAQ :check: ) when you take money out of the company of course.

 

[robertisnt]

You can without any issue own a Cyprus company also if you are a Cyprus resident, the company can simply just not be registered non resident as long as you are the director and shareholder of the company and as well as you live in Cyprus. If you still want it to be a non resident company you will need foreign nominee's i.e. shareholder and director.
You will be liable for personal income tax in Cyprus when you take money out of the company of course.

So lets say i spend 5 months per year on Cyprus so i am not resident, using a travel visa. can i work in this case for my company from there providing. Or i still need work permit visa. In this case i will most likely become a resident, which i do not want if taxes are very high.


So please let me know if i understood it well. Lets say my company earns 100 000 EUR per year. I am gonna pay myself everything as dividend.Then i would need to pay:


1) 10% corporate income 10% tax = 10 000 EUR


2) Dividend tax - 15% = 13 500 EUR


3) Personal income tax - 35% ~ 27 000 E.


So the tax is around 50%. Are you sure i need to pay both dividend tax and personal tax. This doesn't make much sense, as this is too high.

 

[orangeye]

I have read on few forums that around 1500E is quite enough to live comfortable, providing you do not bring your family with you.
Also pretty solid villas for rend can be found for a s little as 500E per month.

Doesn't it comes down to how you want to live and how much luxuries one need in his daily life? If this is the money you can do while moving to a offshore country I would think twice before doing so

 

[clemens]

You don't have to pay Dividend tax i.e. 15% and Corporate tax... only corproate tax. Also there are ways to avoid both income and corporate tax in Cyprus

 

[robertisnt]

You don't have to pay Dividend tax i.e. 15% and Corporate tax... only corproate tax. Also there are ways to avoid both income and corporate tax in Cyprus

I think you do not have to pay dividend if you spend less than 183 days in Cyprus.


Not sure if i need visa to work for my company from cyprus that long (6 month per year).

Doesn't it comes down to how you want to live and how much luxuries one need in his daily life? If this is the money you can do while moving to a offshore country I would think twice before doing so

Even if i earn as little as 10K per month, Cyprus is much better than my country for many reasons. Surely for 1500 it isn't worth it.

 

[clemens]

Okay so you like Cyprus, me too But benefit / profit calculation should at any time match your goals you try to achieve.