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Offshore an affiliate company

Discussion in 'Business & Tax Advice' started by BlueBird67, Feb 8, 2014.

  1. BlueBird67

    BlueBird67 Newbie

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    This is a hard one, I hope someone has the answers I am looking for.

    about two years ago I started an affiliate business and in the last few months my business grew exponentially. I am now facing an average of %45 taxes in my home country Israel and I feel like I am doing something wrong. I know that many of the partners who send me money every month are registered as an offshore company, in various locations, BVI, Montenegro, Scheychelles and various places around the world while their actual location is n other countries where the taxes are higher..

    My question, as an affiliate where and how do I go about registering my business as an offshore company, do I use these websites who offer the incorporation service? I also don't understand the process of how can one use the money made by the offshore company without wiring the money back to the personal account? obviously to avoid the high local taxation...I am wondering if someone can layout the entire process or at least the basics of how to do it.

    It seems like I would need to decide on a country with low taxes and another country where I keep the company's bank account, is this correct?
    I am wondering if there is a solid way to do this without any risk or doing something against the law, I know that big companies like Apple and even Starbucks are doing this, and also many of my partners are incorporated offshore as I mentioned, so my conclusion is that I am doing something wrong by having my affiliate business registered locally under my name and all the money is wired back to my personal account.

    I know that this forum has many affiliates and super affiliates on it posting comments, so if anyone is willing to take a few moments and help me out with this, that'll be really awesome.

    Thank you very much,

    BlueBird Affiliate
     
  2. ozzke

    ozzke Regular Member

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    Ok a lot of questions and this is not really a website about offshore setups and corporations. There are some good forums and useful websites around where you can find a looooooot of useful information.

    Now to go into a bit more detail: Yes you use a website from a supplier that does the incorporation. Important for this is to check online about other people who used the company to create their company. There are a lot of bad companies and some people are just ripping you off so do your homework!
    The ideal situation is a different country for incorporation and different country for bankaccount, both not being your homecountry of course.

    You are asking if you can do it without doing anything against the law, well this depends on the country where you live. You can't compare yourself to Apple and Google, they have so many good lawyers and accountants and you really can't compete with that.
    I will give you a specific example: In Malta all income generated from outside the country is taxed at 0%, so in that case if you would live in Malta and have an offshore company everything would be legal without paying any taxes. In 99% of the cases however it's a grey/black area.

    Any money that you would send from your offshore company to your personal account in your homecountry would be taxable income and they would figure out extremely fast that you are evading taxes. How do those people get the money out of their offshore accounts? Some use the company credit cards, however you can not withdraw with those credit cards in your own country because they often have your name on the chip. So you could use them outside of your own country.
    A lot of people use it as some kind of retirementfunds or use the money outside of their homecountry to invest or buy property...

    But anyway there are a lot of forums that are specialized in this so I think you can get more info there.
     
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