Question - opening an Offshore Company

[klen76]

So i plan to open a company in Seychelles, however i have a few questions if someone could help.

1.) Bank account
I have no business background. Will i be able to open a bank account in Seychelles. Or what should i do? Do you need an offshore bank account for off shore company? Any suggestions, what should i do in regards to the bank account for offshore company?

2.) Office?
So the question is, do you need a physical address? The bussiness is solely based online, everything is done online. But the question is, do i need a physical address? -> I want to apply for a merchant account at credit card payment processor such as Paymentwall, and they seem to require physical address of the business..

Also if office is required, does it have to be in the same country as company is registered?

 

[RuthSam]

You wont find any reliable payment processor for your Seychelles company. And a physical address is usually not required at all. In regards to banking you can look everywhere, it will depend very much on what it is you require from the bank.. but you could bank in UK, Latvia, Cyprus, Malta an so on.. again Seychelles is a no go, large deposits and as far as I remember they don't even allow foreigners to bank there any longer.. at least Barclays stopped all their activity there.

 

[klen76]

You wont find any reliable payment processor for your Seychelles company. And a physical address is usually not required at all. In regards to banking you can look everywhere, it will depend very much on what it is you require from the bank.. but you could bank in UK, Latvia, Cyprus, Malta an so on.. again Seychelles is a no go, large deposits and as far as I remember they don't even allow foreigners to bank there any longer.. at least Barclays stopped all their activity there.

I don't understand what you mean that i won't find any reliable payment processor. Why wouldn't i just sign up at normal payment processor? Paymentwall, for example seems to have Seychelles as country enabled, or what would be the problem?

Well these companies that provide registration of the company introduce you to the bank for a fee of like 500$+, or would it not work. But honestly, i don't know. Does the bank account has to be in the offshore country, or where so you don't have to pay taxes (yes, i know, if i want the cash myselve, i still have to pay taxes in my country, but as long as money is there i can use it tax free for investments and such)

 

[RuthSam]

Well, check it out https://www.glassdoor.com/Reviews/Paymentwall-Reviews-E692198.htm
http://paymentwall.pissedconsumer.com/

If you want to start your business with this payment processor fine.. but I don't believe they can accept Seychelles companies and process Visa / MC transactions.. if you try them and you can.. then please let us know.. also please let us know how it is going with your first payout

No the bank don't need to be in the same country. But what business are you into and what are your reasons to register a offshore company?

 

[klen76]

Well, check it out https://www.glassdoor.com/Reviews/Paymentwall-Reviews-E692198.htm
http://paymentwall.pissedconsumer.com/

If you want to start your business with this payment processor fine.. but I don't believe they can accept Seychelles companies and process Visa / MC transactions.. if you try them and you can.. then please let us know.. also please let us know how it is going with your first payout

No the bank don't need to be in the same country. But what business are you into and what are your reasons to register a offshore company?

Hello the first link you posted are workers at paymentwall, which i don't find relevant, and the second one is people complaining at getting charged and such having problems with the vendors, not PW themselve, which probably happens at every credit card merchant.

I have no idea, but could you clarify why are you so sure they won't accept Seychelle company (i would like to know)?


The business is online only related to such things as hosting, and information techonologies services etc. I don't have a lot of revenue, maybe 2000$ of profit monthly. If i were to register company in my country, i would have to pay like 20%+ at each sale, plus atleast 25% of the profit. Not to mention the monthly costs, which would be around 400$. I would be lucky to walk away with 500$ monthly in my pockets. Fuck, it's not worth my time in that case, so offshore is the only way to go.

 

[RuthSam]

okay, I just made a quick Google search and found the reviews.. anyway.. you may check them carefully. It is against the Visa and MC regulations to do payment processing for a Seychelles company for instant from an US region or Europe or China.. so that's why I'm sure that if they accept Seychelles corps and are not registered in the Seychelles then they may not be compliant.. in the past 2co did it and now they don't.. Anyway give them a shot if it works it's all cool then you have found a solution until it stops if it does.

 

[klen76]

okay, I just made a quick Google search and found the reviews.. anyway.. you may check them carefully. It is against the Visa and MC regulations to do payment processing for a Seychelles company for instant from an US region or Europe or China.. so that's why I'm sure that if they accept Seychelles corps and are not registered in the Seychelles then they may not be compliant.. in the past 2co did it and now they don't.. Anyway give them a shot if it works it's all cool then you have found a solution until it stops if it does.

Thanks very much for this , how do you know this though?

So then there is no hope for offshore company as well if i can't even accept credit cards...

 

[Capo Dei Capi]

Hello the first link you posted are workers at paymentwall, which i don't find relevant, and the second one is people complaining at getting charged and such having problems with the vendors, not PW themselve, which probably happens at every credit card merchant.

I have no idea, but could you clarify why are you so sure they won't accept Seychelle company (i would like to know)?


The business is online only related to such things as hosting, and information techonologies services etc. I don't have a lot of revenue, maybe 2000$ of profit monthly. If i were to register company in my country, i would have to pay like 20%+ at each sale, plus atleast 25% of the profit. Not to mention the monthly costs, which would be around 400$. I would be lucky to walk away with 500$ monthly in my pockets. Fuck, it's not worth my time in that case, so offshore is the only way to go.

What country are you in? Your country may have controlled foreign corporation rules that would make it so you can't benefit from simply having an offshore company.

 

[klen76]

What country are you in? Your country may have controlled foreign corporation rules that would make it so you can't benefit from simply having an offshore company.

Europe. I don't think we have such thing as there was that panama papers leak and many people had offshore company in Panama, and there was nothing ilegal about it. I am not sure now if offshore company will be a good choice as well, since i can't find a way to accept credit cards and without those im nothing.

 

[Capo Dei Capi]

Europe. I don't think we have such thing as there was that panama papers leak and many people had offshore company in Panama, and there was nothing ilegal about it. I am not sure now if offshore company will be a good choice as well, since i can't find a way to accept credit cards and without those im nothing.

The countries that have them, its just more expensive to setup it properly ie management in the other country+office.

http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-guide-to-cfc-regimes-210214.pdf

 

[burnett4congress]

You are probably way overcomplicating things. You haven't even started making money.

Offshore entities are expensive and can be massively annoying. It's only worth it if there is a great savings compared to your domestic tax rates.

Make some money (profit), then you can start worrying about structuring.

 

[1morenoob]

i would have to pay like 20%+ at each sale

Assume you mean vat, you'd be supposed to pay that anyway, its where the customer is not your company. Most EU countries would just ignore your foreign company and tax it as standard anyway if its obviously basically a company in your own country anyway.
Need to move yourself not just the company if you want to save a lot of tax, worry about it when you're making 10k+ a month