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Where to set up to receive money from EU and pay into China?

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Petrichoroma

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Jul 1, 2017
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#1
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- EU citizen (non-resident)
- have 1 company in EU and 1 company in mainland China
- receive money from EU companies and pay Chinese companies

my problem is:
1. if I receive on my EU company the banks always have a million questions especially since China is involved as they consider it 'high risk' + I get taxed on this money
2. if I receive directly on my mainland China company I get taxed + I have a bunch of trouble to explain what this money is for since some of the goods I am paying for aren't supposed to be exported therefore I can't get an official invoice which makes it look like my company is profiting much more than it is actually profiting and this kind of situation is very hard to hide in China.

I know what the solution is: if I set up a company outside of China I can receive money from the EU customers on this company bank account then pay the Chinese supplier directly, pass on the funds to cover the expenses that can be accounted for on to my Chinese company, and retain the profit on this new offshore company.

I just don't know which jurisdiction I should be looking at... I want somewhere with preferably zero tax for international trade activity, ease of opening a USD bank account and preferably low yearly costs as I will probably just receive a handful of transactions per year. Somewhere with good English online banking services.

Please suggest. Thanks!
 
#2
Hi,

So, if I understood you right, you are doing some sort of business that is illegal in your country, trying to hide from taxes (instead of optimizing it) and you are looking for a cheap bank account and hoping they (the bank) would not ask too many questions?
 
#3
Gediminas said:
Hi,

So, if I understood you right, you are doing some sort of business that is illegal in your country, trying to hide from taxes (instead of optimizing it) and you are looking for a cheap bank account and hoping they (the bank) would not ask too many questions?
Click to expand...
No you didn't understand right. The business is perfectly legal hence how I have been currently doing it for years with an EU company. The problem is that banks in EU have gotten worse and worse over time and now even a small payment like €10k between EU countries gets questioned let alone 6 digit payments to a country like China, which in their eyes is high risk (nevermind that China has much better controls and lower levels of illegal corporate activity than the EU). I've just had it and want to do business with a non-EU entity Then the problem in China is that the goods (which are legal in the EU) are not made for export, yes, to export them is illegal that's where I'm in a grey area, but I would only get fined at most, nothing too risky.

If you have nothing to say please bugger off (to be polite) instead of trying to sound condescending.
 
#9
BlueMist said:
€6000 per annum when company incoming annual payments are above €250.000? And it’s not even a bank...
Click to expand...

I get your point. They are expensive indeed. But they are very useful for others.

They are not oriented to the masses.

One of the good things about them - client money security with FCA regulated institution.
 
#10
What about IBS Lithuania? On the front page they promote themselves as "The financial link between Europe and China"
And, of course, as already mentioned, Hong Kong is the first choice but you will need to set up HK company and go there in person for bank account (which will be not easy to open). But it may be good solution in the long run.
 
#13
Can we get the points on the table please.

What are the minimum requirements i.e. min. deposit, country restrictions, accepted business etc.?
 
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