The good news is that there is no need to register your business where you live or plan to live. You don’t have to move or travel anywhere. You can choose to set up a business wherever it suits your circumstances. Nearly any online business is suitable to be run by an offshore company, so if you have online consultancy, coaching or e-commerce business, you are in the right category, but of course, this list not at all exhaustive. We will be happy to advise you whether your business is suitable and you can structure it.
The next step is to choose where your new company should be incorporated. It is straightforward to incorporate a company, but it can be costly if you don’t think it through first. You can, for example, find out that your company was incorporated in the wrong country for your type of business.
To decide where your company should be established, you need to ask yourself some fundamental questions. The most crucial questions are:
Even though you may think that all three of the above questions should have the same answer at first glance, it is not necessarily the case.
There may be a US citizen living in Dubai with a Dubai tax residency or
a Polish citizen living in Thailand. Each of the examples has different tax implications:
In the case of a US citizen, he will always need to declare his worldwide income and pay some taxes where his income exceeds the $100K exemption.
If you are a Polish citizen, you may be subject to an exit tax if you become a non-resident.
There is a balance to be struck. Traditional tax havens are going through rough times, mainly due to the recent scandals (e.g. Panama Papers). Therefore, you should carefully consider whether your clients may suffer withholding taxes when paying invoices issued by a BVI (British Virgin Island) company. You may also find it very difficult to open a bank account for a typical tax haven company.
However, a company incorporated in Singapore or Hong Kong where taxation is relatively low but not perceived as a tax havens may be a better option.
You should also consider whether a more complex structure would work better for your type of business.
It does not have to increase your costs by very much and also increase the level of privacy and protection. UK companies, which are not expensive to form, may work very well in an “Agency Structure.”
It is worth remembering that the price of the company is not the most crucial factor here. Many offshore company service providers offer very cheap formations. They will tell you what you want to hear but not what you need to know.
After the formation, you may find out that your company cannot open a bank account or find that it is not suitable for trading in your chosen areas. For example, a British Virgin Island company selling to French clients is simply not going to work.
In brief, e-wallets is an online digital ‘bank’. The main difference between banks and e-wallets is that the traditional banks have a banking licence and e-wallets hold a money services licence.
E-wallets tend to offer cheap transfers and have low maintenance fees. Traditional banks are suitable for keeping most of your money and receiving payments from platforms like PayPal. However, an e-wallet account is much easier to open than an account with traditional banks.
Once your company is incorporated and has a bank account, it should run itself, allowing you to concentrate on your business.
You can rely on us to let you know well in advance whenever your company needs to be renewed, whenever you need to prepare accounts or file annual returns. We can also recommend several useful online tools and programmes for bookkeeping, admin, calendar appointments as examples.
We offer consulting services on banking-related matters such as offshore bank account opening, e-wallets and payment providers.
We will listen and analyse your current sitiationa dn give you some solutions.
We are able to help clients to decide the best jurisdiction, company structure and set up the company.
We have series of business guides avalable to our newsletter subscribers.
Many people want to both run a business but also not to be bound to a traditional office. We can advise on how to achive this.