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Offshore Company Formation for EU residents [Seychelles]

Discussion in 'Business & Tax Advice' started by powermix, Jun 14, 2015.

  1. powermix

    powermix Regular Member

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    Hello guys,

    I am thinking about opening a Seychelles IBC (International Business Company) and I am a EU resident. My bank account will be set up in Mauritius (as their banks are better and faster than the ones in SYC)

    I know almost all the process regarding to setting up an offshore company in SYC but I have some final doubts.

    I know you guys here have some offshore companies in Hong Kong, Singapore, Belice, Panama and other offshore jurisdictions so what a better help than one from a person who is already managing these type of companies.

    These are my questions:

    - In terms of paying taxes in your local country, what is the difference between getting paid via salary or getting paid via dividends?

    - Do you really need nominees (director and shareholder) to form this type of company?

    - What about setting up a Foundation being the main shareholder of the IBC, is it a good option?

    - What about Invoices? In SYC you have a company address and a company number... so what would you say if they ask you for a TAX ID to make you an invoice?

    - What is the best method of getting paid? Internacional Wire Transfers are expensive, so do you recommend me a Payment Gateway such as Stripe or BrainTree or just getting paid via PayPal?

    - If you want to liquidate your activity for whatever reason, what would be the best way to get the money out of the IBC?

    Thanks in advance
     
  2. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    You won't get any payment gateway that accept a Seychelles company! There are some 3rd party payment processors like 2co that take on Seychelles corps.

    If you don't need the company any longer, just forget about it and you are fine. Sooner or later it will be taken off.

    Who told you Nominees are mandatory? They are not, just providing some additional layer of privacy.

    I would recommend you to get a local tax advisor to help you with the TAX questions, they are different from country to country and you can even get great tax benefits if you find some local (tax lawyer or Tax advisor to help you) It will also depend on the profits you are making...!

    Regardless what setup you choose and which offshore jurisdiction, the bigger the setup the bigger the ongoing costs, and you will defiantly not want it for a $5000 profit organisation a month!
     
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  3. powermix

    powermix Regular Member

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    PayPal is not working in Seychelles? I guess if you use a VPN and you have all the papers in order they can't say you nothing.

    The thing is that the money is inside the company. How can I get all the money out? Via dividends?

    There are some bilateral agreements regarding to tax information exchange (OECD): http://www.oecd.org/tax/exchange-of-tax-information/taxinformationexchangeagreementstieas.htm

    I think sooner or later, if the government of your country tries to research about your company, it would be better to have nominees instead of you.

    Thanks BTW
     
  4. EarthIsSmall

    EarthIsSmall Newbie

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    Pretty sure PayPal restricts based on the residency of Company and not on IP.

    The purpose of nominees is not to hide your identity against authorities.
    Nominees do offer a layer of privacy against civil investigators (nosy relatives, private investigators, in some jurisdictions also creditors), in that your name will not appear on any public record and your signature with the bank should be protected by banking secrecy.
     
  5. Capo Dei Capi

    Capo Dei Capi BANNED BANNED

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    Unless your running something illegal in your country or using it to evade taxes there is nothing they can do about you having an offshore company.
     
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  6. powermix

    powermix Regular Member

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    So if my company is registered in Seychelles and I can prove it, they should let me open a PayPal account, right?

    What about setting up a Foundation as the nomineee shareholder of the IBC? Would it be safer?
     
  7. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    You will need a lot more than just to prove the company to be registered in the Seychelles in the eyes of PayPal :D
     
  8. EarthIsSmall

    EarthIsSmall Newbie

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    PayPal tend to deny requests from tax havens. Mainly is the reason because, well, you simply pose a risk.
    Risk of fraud. Risk of money laundering.
    Risk of abuse. Regulatory risk. You name it. Your company is incorporated in a jurisdiction with a poor reputation, but if you incorporated in for example Hong Kong, Malta, or maybe Isle of Man, you are in luck.
    The problem is secrecy and lack of accountability. The fact that your IBC or other secretive company cannot be verified against a public record of companies coupled with the fact that your company is under loose accounting regulations are a big part of why companies like PayPal are hesitant to take you on.

    What you could do is try PayPal through an intermediary like WorldPay, Adyen, 2CheckOut, GlobalCollect, and so on. There a lot of them. Some have stipulated (or implied) minimums on turnover (Adyen for example prefers merchants that earn them at least 10,000 EUR per year in fees), but the upside is that they are often understanding and accepting of offshore companies. This would eliminate the need to form an intermediary company.

    PayPal will most likely not accept your business directly. Exceptions do occur, but very rarely so. Forming an intermediary company could get around the problem but you might still face the requirement that your company has a bank account where it is registered, which would mean yet another bank account to manage, unless you set up a Maltese company which although tax attractive can be a bit of a hassle.
     
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  9. powermix

    powermix Regular Member

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    Thank you for your reply. I have sent them a ticket.

    I have seen the 2Checkout option and it seems pretty good. They confirmed me that they can work with offshore companies.
     
  10. Banker1984

    Banker1984 Newbie

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    I dont think you should complicate your self, unless you want to hide your money, but that tends to create problems