Almost everyone knows than an offshore company can be used to protect your assets and can also be used as a vehicle to avoid or minimize tax. In many cases an offshore company (eg. A company incorporated in Cyprus but operating in another jurisdiction) is legally formed to give the owner several benefits that are unobtainable through a local company. One such benefit is the right to obtain a loan in the name of your company. Many European countries forbid LLCs and LTDs to borrow money, as it is in violation with the tax authorities. However, it is of great benefit for a start up entrepreneur if he can get the protection of a regular LTD and still be able to finance the company’s activities, including his own salary.

How is it possible to get more money out of an IBC / Offshore Company, for instance in Cyprus?

It is actually easier than you might think. Normally you need to have approximately EURO 17.000 to form a LTD in a European country. There are exceptions to this rule but 80% of the time this will be the case. Once you have establish the company with 100% of the shares equaling a value of EUR 17.000 then you are unable to draw any of the money out from the company for yourself.

A Limited Liable Company needs to have the ability to be liquid and must assure its trading partners that you have at least have the EUR 17.000 in assets or cash in the company. If the owner of that company by law were able to just take out the money exactly before the company, for any reason, declares bankruptcy then it would favor himself.

With a Cyprus Offshore Company or any other offshore company you are allowed as a resident of a European country to take out loans against the company. Let’s say your company starts to generate a profit, you can then take money out of the company in two ways. One is as regular salary, which will cost you to up to 50% of your salary, as you will be forced to pay the tax authorities. This is undesirable and presents many business owners with a problem, they need to take money out of their business but they don’t want to pay the high tax rates associated with a salary. So what can you do in this situation?

The second way to take money out is as a loan against the company. This loan can be made over a period of 10, 20, 30 or even 50 years. Once the money reaches your account you need to report it to your local tax authorities as a loan. Because it is a loan, and not a profit or income it cannot be taxed.

I hope you fond this article informative. More tips and tricks for how to make the most from your offshore company setups are coming in the near future.
For Cyprus Offshore Company formation and Cyprus offshore bank accounts please contact cclogic.com

One of the biggest questions currently being asked, with all of the offshore jurisdictions available, is “which jurisdiction should I register my offshore company in?”
Different jurisdictions offer different benefits and it is important that you choose the jurisdiction that will offer the most benefits for your company. Below we will discuss 4 of the major offshore jurisdictions and the advantages they could offer you and your company.

Before we begin outlining the jurisdictions and their advantages it is important that you understand some of the terminology we will be using:
IBC = International Business Company, a term for offshore companies in almost any offshore and even onshore jurisdiction.

Offshore jurisdiction = Tax Haven / low tax jurisdiction. Mostly offshore jurisdictions are located on islands or in countries that have no corporate tax, or provide a low taxation rate while also offering privacy and anonymity protection.

TIEA = Tax Information Exchange Agreement. Model agreement on exchange of information on tax matters, developed by the OECD Global Forum Working Group on Effective Exchange of Information

The 4 offshore jurisdictions below were chosen, as they are 4 of the most popular jurisdictions for the incorporation of offshore companies and they offer a wide range of benefits to a miriad of different companies.

Belize:
Belize is located on the border of Mexico and can be the perfect place for those registering an offshore company who desire complete anonymity. Belize has a wealth of services that makes creating and managing an offshore company easy.
However, during the last few years Belize has started signing TIEAs with several important countries around the world. These countries include, but are not limited to, Australia, Belgium and the United Kingdom. This makes Belize less attractive for companies operating in any of the countries that have a TIEA with Belize.

The British Virgin Islands:
The British Virgin Islands (BVI) has long been one of the most famous offshore jurisdictions and thousands of companies have been incorporated in BVI over the last few centuries. Unfortunately, major changes during the past 2 years have made it unattractive for companies to incorporate in BVI. This is mainly due to the TIEAs they have signed with countries such as the USA, UK, Australia, The Nordic Council (Denmark, Norway, Sweden, The Faroes, Finland, Greenland and Iceland), New Zealand, Netherlands, Aruba, China, Ireland and France. You may notice that the mentioned countries have high tax burdens and it was from these countries that most of the companies came to incorporate in BVI.

In the past BVI was the home for many Financial Companies (for the purpose of managing investments), Forex Trading, Mutual Funds etc. It was quite simple to establish these types of companies in the BVI and avoid paying any taxes. Today this has changed considerably and many companies are choosing to stay away from the BVI.

Cyprus:
For most Europeans Cyprus is the No. 1 place to incorporate as Cyprus has the lowest tax rate in Europe. It does have various TIEAs and Double Tax Agreements in place, but despite this it can offer (with the right tax planning) many small, medium and large corporations huge financial benefits.
Cyprus is so attractive to companies and individuals as it is a part of the European Union, it is possible to use Nominee Shareholders and Directors (for anonymity) and it is also possible to avoid corporate tax (0% corporate tax) if the Cyprus Company is nonresident.

The Seychelles:
The Seychelles are well known in the corporate world, but not quite as famous as the previously mentioned offshore jurisdictions. To incorporate in the Seychelles takes less than 1 hour, and they haven’t signed any TIEAs with other nations at this point in time. They will eventually be forced to sign some TIEAs but it is likely this will only be with small, non-important countries.

The Seychelles have very simple regulations in regards to the operation of Financial Investment Companies like Forex Trading, Banking Services and E-Currencies, as well as Mutual Funds, International Trusts and much more. One of the most attractive features of the Seychelles is the low incorporation fee, which is less than EUR 500 for a fully incorporated Seychelles IBC.

You do not need to visit any of the above jurisdictions to register a company within them. It is also possible to open offshore bank accounts in all of these jurisdictions without visiting the country or the bank. Everything can be handled online so that you never have to leave your country but can still achieve the great benefits of having an offshore company.

We hope that the above has given you some useful information in regards to achieving the incorporation of your Offshore Company in the near future. As every company is different and seeks different benefits we recommend you get in touch with one of our professionals who can find a personalized solution for your company and who can guide you, step by step, through the entire process.

The whole process in incorporating a company is made is designed to meet set rules and guidelines. In Belize for example, it takes a few days o complete the whole exercise; from order form filling and submission. The system is just magnificent, never wasting much time.

The structure laid down in registering an offshore company is designed to save most of a client’s time and of course, money. For example, directors and shareholders can be one and the same. Rules have been simplified to allow more people to come up in registering offshore companies. Furthermore, these persons can take the form of a true person or even a corporate entity.

A shareholder or director is all you need to establish or register an offshore company and you are not bound to choice a director from the country of incorporation.

Information/ or details about the ownership of an offshore company is kept privacy. There is no identity revelation of the key players in the offshore company. Documents related to company transactions are not open to public scrutiny. Therefore, there is no need to worry about registering offshore companies.

The transfer of funds/ payments is made easier and interesting; cash payments are accepted as well as exchange of assets and the issue of traded shares is accepted in any form of currency. This is to kick out stress involving transactions in specific currencies. Shares regarding par value can be dispensed without this consideration and the general records are updated regularly to improve on their operations (taking Belize as an example). The basic share capital here stands at US dollars fifty thousand, and this can be matched with the same value but in a different currency.

One interesting thing about registering of offshore companies is tax exemption. These companies do not pay tax as well as stamp duty of any kind.

Offshore company yearly statements are not a requirement in the Belize IBC. It’s only the shareholders who may decide to do it from wherever they are. One more thing, offshore records are only filed by the directors/ shareholders and are the responsibility of the shareholders themselves.
 
Undertaking business activities in these IBC trade members is much fun; in most cases, local residents are not allowed to trade in offshore transactions. But on special occasions;
? A professional relationship is maintained between the accountants, solicitors and bookkeepers among others.
? The company often allowed to hold its meetings within the land and is allowed to keep the records of books in the respective country.

Therefore when you try to register offshore company, just take easy and visit the internet for all your needs regarding to registering of offshore companies. You’ll realize that it’s a business worth venturing in.

Offshore Company Formation
with CCLOGIC.COM, we provide reliable online registration and formation of Offshore Companies and online opening of Offshore Bank accounts through our advanced ordering system Online Registration & formation of Offshore Company

Company with share capital

These Offshore Companies engage in the issuance of shares. The moment the original cost of the share, whether it is the capital share or the premium share, is paid; the shareholders seize to hold any further duty or obligation as far as the company is concerned. These shares can be traded by buying or selling at will. The said shareholders on the other hand have a hold on the enjoyment and profit of those shares. They also have a hold or right to garner all the benefits and profits that will accrue from the company’s liquidation.

Company limited by guarantee

This type of Offshore Company Formation means that the members of the firm will by consensus agree to sink in their money to a specified limit in the event the company gets bankrupt. These members are predisposed to hold the company to dividend share and other specified rights as stipulated in the rules and regulations, terms and conditions of the company. Death may be the termination of membership and this type of guarantee formed offshore company has been predominantly used by NPO’s (Non Profit Making Organizations).  Some of the more savvy estate planning schemes uses these guarantee offshore companies to get their hold on the market.

Protected cell companies

Seychelles and British Virgin Islands are some of the jurisdictions that allow for cellular companies. Here, specified assets and liabilities are compartmentalized into cells. This is enacted in such a manner that assets in one compartment or cell are not to be used to meet the liability demands of another asset. This type of Offshore Company Formation is specifically necessary to shield mutual funds or insurance bonds that are unit linked.

In their bid to increase their market share, most of these countries will make use of the Offshore Company Formation and other specialized kinds of companies. Trusts, tax exemptions and incentives, and partnerships will be the order of the day, especially in those places where it isn’t already.

The gist of Offshore Company Formation, after all is said and done, lies in eventually getting favorable monetary returns. It is an investment even when it looks like child’s play to some.
Therefore, with all the tax exemptions and flexible and lenient legislations one may still fail to meet the grade. Such lucrative options attract pretty fierce competition from a broad spectrum of investors from all over the world. With such knowledge, it should hence dawn on you that putting your house in order by studying the market carefully may be the difference between a failed start and a successful one.

Offshore Company Formation
with CCLOGIC.COM, we provide reliable online registration and formation of Offshore Companies and online opening of Offshore Bank accounts through our advanced ordering system Online Registration & formation of Offshore Company

Offshore Company:
A offshore company is simply a company registered in an Offshore Jurisdiction and which is subject to only little to no tax and which has many opportunities to increase profits and for a proper assets protection.

Shelf Company or Ready-Made Company:
This isn’t any different than any other company registration, it simply means that you buy a already incorporated company in the jurisdiction of where you want to conduct business. A shelf company is often faster to start trading with and in some cases where the incorporation speed is essential a good way to cut down the time frame it normally takes. A Shelf Company in as an Offshore Company often also gives you a lot of other possibilities like anonymity and subject for 0% Tax.

IBC or International Business Company:
An IBC  is a company which is registered in an offshore jurisdiction and often also just a simple offshore company for instant a company in Cyprus. When a company gets the status to become an International business company, then it has in many parts of the world the status of a cero percentage of TaX but it is also not allowed to conduct business within the jurisdiction of incorporation. That mean if you register an IBC for instant in Cyprus, you can’t make any business within Cyprus, the IBC can only make business with others outside of Cyprus. This doesn’t mean that your IBC never is able to do business within the same jurisdiction but if it do, they are subject to TAX and will (in some cases) not be treated as an International Business Company any longer.

Does that mean that I can become an Offshore International Business Company and as an Shelf Company?

Yes you can buy a IBC, which again means that you will make use of an Shelf Company which is already registered as an International Business company, and if you go and do that in an Offshore jurisdiction like Cyprus, you will become a Shelf Company which is an International Business Company and at the same time a Offshore Company.

CCLOGIC LLC has a lot of offshore services available and always about 10 Shelf Companies registered. We can help with the opening of Cyprus Offshore Bank Accounts and the opening of Offshore Merchant Accounts. To read more, please visit our website or contact us, we are always more than happy to hear from you.

To open a company for instant in Cyprus don’t need to a visit, all Limited Companies in Cyprus ( LTD company ) can be registered online through your company formation Agent in Cyprus.

The steps are very simple;

You decide which type of company you would like a Limited Liable Company a Limit Trade Company or even a IBC Company (International Business Company).

Next, you go and submit your documents which the Offshore Company Agent will require, typically a Phone or Electricity Bill and copy of Passport together with a brief business description, that’s all. The documents can be submitted securely online.

Now you will receive your Company Registration Application for your LTD, IBC or LLC Company and you just need to fill and sign and return the application, takes less than 5 min.

Within 5 – 8 days you are ready to conduct business with our Cyprus LTD or Cyprus IBC or Cyprus LLC Company. Cyprus Company incorporation is very easy and can be connected with a Euro Bank Account in a Cyprus Offshore Bank Account.

For more information please contact CCLOGIC .COM a duly incorporated company in Cyprus.

Banks corporate secrecy laws typically impose civil and criminal penalties for unauthorized disclosure of confidential information, including information on the beneficial ownership and control of corporate vehicles. These laws diminish the capacity of authorities to obtain and share beneficial ownership and control information when they not provide mechanisms for domestic and international authorities fulfilling their regulatory/supervisory or law enforcement functions to access records.

Above is part of an article we found on a website of OECD. The purpose of the entire article is to inform people about the illicit use of bank accounts for laundering money or to hide money from tax authorities.
The main purpose for an offshore bank account is to have it opened in the name of the offshore company to be able to get all the benefits from your offshore company operation. Beside the tax benefits and asset protections possibility, often such offshore vehicles are used to be established by people which live in countries where they are unable to open an bank account.

Another widely used reason for opening an offshore bank account and an offshore company is if the business conducted is Internet based. The card associations has divided the world in about 6 regions and prohibit people from one region to clear credit card transactions in another region then where the company and the business is conducted. To work around this problem it is common to open an offshore company which fells into the region of where the Acquiring bank is located with whish the transactions should be cleared.

Other aspects are the legal issues of certain product or services, for example the distribution and selling of replicated products of brands is prohibited in most parts of the world if they are not licensed. In some countries it is however, possible to sell those products; typically China is such a country. To be able to sell such products on the Internet you will need to become a credit card acceptance agreement with a bank in the region where it is legal to sell the product. But those banks (as already explained above) require you to be incorporated in the same country as the Acquiring Bank. To work around this you will need to establish an offshore company for instant in China; since it can be overwhelming to open a company there it could be of benefit for you to have the Chinese entity to be owned by a “more close to you” company which in worth case can be liquidated and in that way not harm you or your economy.

Some payment processors allow you to use their company and merchant account to process transactions, these are called 3rd party processors and are most common for small business entities our entities which sell services and products for which it is almost impossible to obtain a separated merchant account with an Acquiring Bank. Examples of 3rd party processors are 2co, ccbill and a few others which have been in the marked for many years and which can be used without any problems on a long term. Those companies have however limitations on which services and products they allow to be sold. Now if you are doing a quick search on for instant google, you will find a lot of 3rd party processors which say they have can accept certain business and for instant also replicated products to be sold, they often also have nice looking websites and proper documentation in place for the legitimating of the operation.

What you need to consider and carefully read is the liability they put on your company and most of them will ask you for a huge setup fee which not surprising is in the range of 3 to 5000 USD. That you need to pay the setup fee is the first risk, but using your well established company with these companies is another risk. It is highly advisable to put some offshore company in between the relationship of you and the 3rd party processor.

You will now ask why? Very simple, if something goes wrong you are not protected if you not follow the advice above. If you are in a business which is considered high risk or in some countries even considered illegal, then things can go wrong. Often 3rd party processors register their “sub merchants” with the card association to cover their own business. If something should go wrong now, then it is the sub merchant that has to pay the bill and take the responsibility for the account. There are many things that can go wrong, to give some examples, you can get into a steam of stolen credit cards used by people to get your products for free, often this will result in massive chargeback’s, not enough that you have to pay the chargeback’s fee, you will also pay penalties in the amount of USD 25.000 and even worth you will get blacklisted worldwide, even it wasn’t your fault. If you don’t have any protection from this happening, you will lose your entire business and never get into it again, at least not in an Internet based edition.

To use an offshore company in between and be that company the beneficial owner of the merchant account is the best you can do to avoid such incidence.

Thank you for your reading and we hope to be able to serve you once in a while when you decide to register a Cyprus Offshore Company or need a Cyprus Bank Account or just want to Accept Credit Cards on your Website. Then please contact cclogic.com | Please also feel free to visit our Merchant Servise Discussion

It is known by all that an offshore company can be used to protect your assets and also be used as a vehicle to avoid TAX.

However in many cases a offshore company for instant in Cyprus is formed due to several benefits which a local company can’t give you, one of them is the right to make a loan in your own company. To “borrow” money in an LLC or LTD is prohibited in many European countries since it is in violation with the TAX authorities. But it is of great benefit for a new started entrepreneur if he can get the protection of a regular LTD and still is able to use the money for financing the company’s activities including his own salary.

How is it possible to get more money out of an IBC / Offshore Company for instant in Cyprus ? Very easy normal you need to have about EURO 17.000 to form a LTD in a European country, there are exceptions but for 80% of the countries in Europe it is the case, now when you have established the company with 100% of shares of an value of EUR 17.000 then you are not allowed to take some money out from the company to yourself. A Limited Liable Company need to have the status to be liquid and to assure your trading partners that you at least have the EUR 17.000 in assets or cash in the company and if the owner of that company by law was able to just take out the money exactly before the company for any reason declares bankruptcy then it would favor himself.

With a Cyprus Offshore Company or any other offshore company you are allowed as an resident of an European country to make loans in the company, let’s say you are starting to make money in the company, then you can money out of the company in two ways, one is as regular salary which will course you to up to 50% of the salary to the TAX authorities that can often be a problem, because you need to take more money out then if you don’t had to pay tax! So what to do? The second option is to take out the money as a loan, this loan can be made over a period of 10, 20, 30 or even 50 years if you like, and once the money is on your account you just need to report it to your local TAX authorities as a loan.

Hope you find this article informative, more are coming with more tips and tricks for your offshore company setup.

For Cyprus Offshore Company formation and Cyprus offshore bank accounts please contact cclogic.com

However, in certain jurisdictions and in certain commercial contexts, the high level of anonymity that bearer shares provide make them attractive for nefarious purposes, such as money laundering, tax evasion and other illicit conduct, especially when they are issued by private limited companies.

Bearer shares are permitted in many (but not all) jurisdictions, both onshore and offshore. However for instant in Uruguay it is the most common thing to form the company by using bearer shares, same in the Netherlands Antilles.

In many continental European jurisdictions, public limited companies are permitted to issue bearer shares while private limited companies are not allowed to do so.

In Gibraltar, for example, an exempt company may issue bearer shares but they must be disclosed to the authorities. Furthermore, the names of the beneficiaries must be disclosed to the authorities. Therefore Gibraltar lost their privilege as Offshore Jurisdiction and as TAX haven; it isn’t of interest for businesses or individuals to form companies there any longer.

Corporate service providers regularly design structures to ensure that the beneficial owner remains anonymous and often act as the intermediary between the client and the authorities in the jurisdiction of incorporation.

For Offshore Company Formation (IBC) or Cyprus Bank Account, please contact cclogic.com we have specialized our services to warrant your anonymity.