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Which jurisdiction for consultancy company paid in crypto?

eomeakyl

eomeakyl

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Oct 20, 2020
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#1
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I'm planning to be hired as a consultant for a US corporation. Where I live I don't have to do any reporting or have any tax obligations for offshore companies I manage if the company is permanently established elsewhere. I'm looking to form an offshore company where I can easily establish substance. I don't need banking because all income will be received in crypto. I can pay myself crypto from the company and convert it to fiat as an individual and pay tax on that income. I want zero tax for the company. The company will provide consultancy service only.

What could be some good jurisdictions to look into?
 
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#3
bountymounty said:
Dubai, Cyprus non-dome or Romania micro company may well be options for you!
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Thanks. Dubai I'm considering, though it does seem overkill for my needs. Could be the right option though. Cyprus non-dom seems a bit counterintuitive for my needs since I actually want dom. Maybe I'm just not understanding it correctly. I don't think Romania micro company suits my needs.
 
#5
CaptK said:
UK LTD or LLP. You don't need a bank account so it would be easy.
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From my understanding these entities don't work for my needs since they're similar to US LLCs. You'd still need an offshore backstop. I don't need the onshore front (UK LTD or US LLC), I only need the offshore component.
 
#6
Zero tax and zero reporting do not exist anymore. You have to do some reporting everywhere in the world now.

UAE is the easiest and reporting requirements are lax right now. But it's on the FATF grey list so things might tighten up there.

There are various digital nomad visas available in tax havens. This thread has lists and references: Countries with Digital Nomad Visa

eomeakyl said:
Cyprus non-dom seems a bit counterintuitive for my needs since I actually want dom. Maybe I'm just not understanding it correctly.
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Dom means you have familial ties to Cyprus (e.g. Cypriot parents) or have lived in Cyprus for 17 years. As a foreigner moving to Cyprus, you are exempt (non-domiciled) from capital gains tax in Cyprus for the first 17 years.

It's not tax free, though, nor is it accounting/reporting free. It's 12.50% corporate tax and 2.67% for social security contributions (max 4,800 EUR/year). But you get to keep the rest for yourself.

Accounting records must be kept and there is an annual audit. You can get accounting and audit done for about 1-2,000 EUR/year for a small business with few transactions.
 
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#7
I'm not looking to move. I'm happy where I am. I've already confirmed with local law firms that I can run offshore companies tax free and pay only tax on the income I bring into the country. I've been using this structure already for a long time. It's not new to me. I'm simply looking for a jurisdiction to set up a new company. UAE seems like a good option but again it's really overkill because I don't need banking or a visa.
 
#8
eomeakyl said:
I'm not looking to move. I'm happy where I am. I've already confirmed with local law firms that I can run offshore companies tax free and pay only tax on the income I bring into the country. I've been using this structure already for a long time. It's not new to me. I'm simply looking for a jurisdiction to set up a new company. UAE seems like a good option but again it's really overkill because I don't need banking or a visa.
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Lol are you really sure your Company have substance. I highly doubt it. No an office and a nominee director doesnt work
 
#10
I'm moving forward with a UAE FZ company. I think this is the most suitable option at this time. At first I was thinking it was overkill but they offer a lot of benefits that make it worthwhile. Plus it opens up more options in the future if my circumstances change.
 
#11
eomeakyl said:
I'm moving forward with a UAE FZ company. I think this is the most suitable option at this time. At first I was thinking it was overkill but they offer a lot of benefits that make it worthwhile. Plus it opens up more options in the future if my circumstances change.
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Please tell us where you live and what your citisenships are. If you're not in Thailand UAE Philippines or carribean then such setups will likely not work. Please explain to us how you're so sure?
 
#13
eomeakyl said:
I'm sure because I pay a lot of money to legal firms :)
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Ok... and a lot will say well as long as you have our fiduciary aervice which costs 5,000$ a year you will be all okay! Then one day the tax man kicks down your door.... you are getting free advice here, why can't you share your residency? You are talking about creating substance. I don't think nowadays its so easy anymore. You might get into deep trouble.

However, if you're using crypto then you might be able to do an illegal setup quite easily.
 
#15
Jerry1911 said:
Find a classic offshore jurisdiction that doesn't have a TIEA with your home country and setup a company there.
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None of the offshore jurisdictions have a TIEA with my home country. The core question is which classic offshore jurisdiction to pick?

KDX said:
why can't you share your residency?
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Because there's nothing for me to gain by sharing but a lot to lose. I'm not sure why you care so much. It's irrelevant what country I live in. If I break the law that's my own fault, not yours.
 
#16
Assuming the advice from your attorney is correct, you can pick pretty much any offshore jurisdiction you want then, although I'd still recommend staying clear of the worst ones. BVI is popular for people in similar situations. Anguilla, Cook Islands, TCI, Saint Kitts, and Nevis could also work.

The main ones to avoid are Belize and Vanuatu, due to the jurisdictions' poor reputation which can be a hurdle if you ever want to find some sort of of fiat account for the company in the future.

UAE FZ is overkill. You're paying a lot of overhead for things you apparently don't need, and you're diving into a grey listed jurisdiction.
 
#18
UAE company doing anything in crypto requires it’s own license. Be sure that you don’t overlook this as it will either cost you a lot, could land you in jail or both.
 
#19
CaptK said:
UAE company doing anything in crypto requires it’s own license. Be sure that you don’t overlook this as it will either cost you a lot, could land you in jail or both.
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There may be some confusion. You need to get the correct license for the type of business you operate. If you make your own cryptocurrency or run a cryptocurrency exchange then you need a license for that. You're allowed to receive payment in crypto without requiring a license specific to crypto.

lostguy said:
Cyprus Ltd may be worth to look into. I can't see why you don't want that.
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From my understanding you only get zero tax for non-resident companies. So I'd then have to set up residency for the company elsewhere. It's doable, I've done this type of setup before. But I don't think it's particularly advantageous my current situation.

Sols said:
UAE FZ is overkill. You're paying a lot of overhead for things you apparently don't need, and you're diving into a grey listed jurisdiction.
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I'm not sure what's so problematic about diving into a grey listed jurisdiction. I'm accustomed to working with blacklisted jurisdictions. Is the fear that UAE will change their laws? We're already seeing that with the introduction of corporate tax. Nothing alarming so far.

Sols said:
Assuming the advice from your attorney is correct, you can pick pretty much any offshore jurisdiction you want then, although I'd still recommend staying clear of the worst ones. BVI is popular for people in similar situations. Anguilla, Cook Islands, TCI, Saint Kitts, and Nevis could also work.
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These are all IBC or IC offerings. They can definitely work well in some circumstances and I've used these structures before. I wanted to avoid this for my current situation and instead opt for a regular company.

Sols said:
The main ones to avoid are Belize and Vanuatu, due to the jurisdictions' poor reputation which can be a hurdle if you ever want to find some sort of of fiat account for the company in the future.
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I don't care about reputation. The reason I didn't go with Belize is because their LLC structure (which is a partnership hybrid) doesn't work well for my situation. Vanuatu is another IC option.

Sols said:
UAE FZ is overkill. You're paying a lot of overhead for things you apparently don't need
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I agree with this, definitely. However, it's also quite simple. I pay a bunch of money and get something known to work. It also gives me access to opportunities in the future. I may not take advantage of those opportunities but they're there if I need.
 
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#20
eomeakyl said:
I'm planning to be hired as a consultant for a US corporation. Where I live I don't have to do any reporting or have any tax obligations for offshore companies I manage if the company is permanently established elsewhere. I'm looking to form an offshore company where I can easily establish substance. I don't need banking because all income will be received in crypto. I can pay myself crypto from the company and convert it to fiat as an individual and pay tax on that income. I want zero tax for the company. The company will provide consultancy service only.

What could be some good jurisdictions to look into?
Click to expand...
Try considering the US LLC, read our guides here

https://startfleet.io/guide/us-llc-for-non-residents-guide
https://startfleet.io/guide/trading-crypto-on-us-crypto-exchanges-with-a-foreign-owned-llc
 
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