Do you like this site? Do you want to read more, then please click the Google or Facebook Icon

Fig.1 - Offshore Company Formation with nominee shareholder and director

The benefits from an Offshore Company Formation and the opening of an offshore bank account are many, and if done right it can give the maximum tax savings, privacy and assets protection and anonymity.

Many European countries have strict regulations on how you can manage your LTD or other limited company form; many entrepreneurs are struckeling in the effort to managing and survive of their company.

With an Offshore Company in countries like Belize, BVI (British Virgin Islands), Cyprus or the Seychelles you will have much broader possibilities to archive your goals to compete towards the competition in your business fields.

The mother company of an offshore company can for instant register a company in a European country, if their daughter company is obtaining a loan of a certain amount of money and the EU Company can now set off the interest in the annual report, saves taxes. This method is widely known by business professionals and used by many located in tax heavy countries. It might look unethical to some, but not less it is legal.

Taxation of instant income in a company can also be almost eliminated if the company is located in an offshore jurisdiction and the activities are taking place abroad in an offshore company.

An example of this is:

Our point of departure is five people which work as teachers on a local school, but which in their spare time have visited courses as masseurs and which are now educated to perform this as a work and by that make some extra income. The way they work is by visiting different companies around offering their services which are massage to the employees, once finished they leave and go to the next company. The business activity they place in an offshore company which also the one is invoicing the different companies they visit. In this way they don’t have a static address or office from where the work is performed which makes the entire business model not to be considered as a local business, now this is a foreign business and is not subject to any tax in the local country. Important to note here is that if they take a portion of the net profit from the Offshore company for them self it is subject to personal income tax.

In the above example, the money is going straight into the Offshore Company without any tax paid!

The important part is that the Offshore Company formation takes place correctly and you will need to have a professional offshore company formation agency to help.  For the tax issue in the above mentioned example and in any other case it is important to mention that you will need a Nominee Shareholder and Nominee Director which can be locals or foreigners, but the nominee service is the key here. See also the Fig.1 on this page for an illustration of the correct incorporation.

CCLOGIC LLC is providing offshore company formation in, Belize, BVI, Cyprus and the Seychelles and can beside the offshore company formation also help with the formation of Trusts and the opening of offshore bank accounts, we have been serving clients worldwide to archive their goals and this for many years.

Do you like this site? Do you want to read more, then please click the Google or Facebook Icon

Nominee directors and corporations serving as directors (“corporate directors”) can also be misused to conceal the identity of the beneficial owner, and their use renders director information reported to the company’s registry less useful. Nominee directors appear as a director on all company documents and in official registries (if any) but pass on all duties required to be performed by a director to the beneficial owner of the company. In many jurisdictions, the nominee or corporate directors is not required to own the shares in the company in which it serves as a director.

Certain jurisdictions, including most OECD Member countries and OFCs such as Cyprus, Isle of Man, Jersey, Malta and the Netherlands Antilles, do not recognize nominee directors. Consequently, a person who accepts a directorship is subject to all of the requirements and obligations of a director, including fiduciary obligations notwithstanding the fact that he is acting as a nominee. In certain jurisdictions, directors cannot be indemnified by the beneficial owner. Non-recognition of the concept of nominee director has one indirect benefit – those furnishing or acting as professional directors are likely to take greater precautions to ensure that their client, the beneficial owner, does not misuse the corporate vehicle for illicit purposes. In the Netherlands Antilles, which does not recognize the concept of nominee directors, reputable trust companies that are asked to serve as directors will conduct a rigorous background check on their clients and, in the case of bearer share companies, will insist on the immobilization of those shares as a condition to accepting a directorship.

For Cyprus Offshore Companies this is commonly used by many online businesses conducting their business ultimately on the Internet.

For more information how you can become a legit Cyprus Offshore Company and a IBAN Bank Account in Cyprus, please contact CCLOGIC.COM