1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Offshore company + virtual business account

Discussion in 'Business & Tax Advice' started by Cappari, Feb 2, 2014.

  1. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    Hey guys, could be possible to run an offshore company with a virtual account instead a bank account? I am from EU doing affiliate marketing and I will get paid for my CPAs from EU via payment processors/e-wallets like PayZa, Paxum, Neteller etc. where is also possibility to open virtual business accounts. All accounts offer their own physical credit cards as well so my question is if it's possible and legit to open such account for an offshore company, f.e. Belizian Ltd? How to tax than ( if even tax) that the money for personal needs if there is relative no chance to control such money virtual movements and ownership? Thank you for any oppinions!
     
  2. infoasian

    infoasian Supreme Member

    Joined:
    May 12, 2011
    Messages:
    1,335
    Likes Received:
    421
    Occupation:
    retired
    Location:
    Singapore
    Home Page:
    Your accounts would need to be in the name of your offshore entity. They can't be in your own name to be tax efficient. Having said that, they will include your name as a beneficiary and therefore you will have a huge paper trail with your name linked to your offshore company. While you could do this in theory, you will still need to pay personal income tax in EU for your offshore company. Those providers will report your accounts to your tax department and sooner or later you will be questioned about your offshore company.

    If you want your name out of it your bank or virtual accounts have to be regulated outside of EU, i.e. in Belize, Hong Kong or Philippines.
     
    Last edited: Feb 2, 2014
  3. OnlineA

    OnlineA Regular Member

    Joined:
    Sep 7, 2012
    Messages:
    280
    Likes Received:
    151
    Get out of Europe...best decision I ever made. I hope I will never pay a penny to the Brussel monkeys again.
     
    • Thanks Thanks x 5
  4. trendfol

    trendfol Junior Member

    Joined:
    May 24, 2010
    Messages:
    118
    Likes Received:
    13
    OP, where do you live?
     
  5. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    Thank you for your oppinion! Yes I will open virtual business accounts in the name of the offshore entity. If I will set-up the offshore entity with nominee service, it is legit to use this nominee names instead my name as the beneficiary of the virtual business accounts? If I good understand the offshore - entity's worldwide income tax is relative zero and I don't must pay any futher personal income tax until I am going to use the money for my personal needs from a specific country where is my residence what is also discutable from the nature of online business of this kind where you can move practicaly from day to day from Singapore to Moscow or Zurich. But my question is how can be this monitorable if all virtual business accounts have their own physical credit cards and giving you so instant acess to that virtual money therefore you need no futher physical money transfers to physical banks to be able to acess your money. A bank accounts in HK or Philippines would be fine but do we need to transfer money to a bank to be able to collect or use it if we can instant charge e-wallet credit cards usable on any ATM worldwide. [FONT=Arial, Helvetica, sans-serif] [/FONT]
     
  6. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    I forgot to say that for example the e-wallet Paxum offers ATM physical credit cards issued for Paxum by carribean bank.
     
  7. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    Donor: I know that i should leave Europe, can you give me some tips where to leave? ;) Definitely I like adventure
     
  8. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    trendfol: I live in Czech Republic. Thank you
     
  9. trendfol

    trendfol Junior Member

    Joined:
    May 24, 2010
    Messages:
    118
    Likes Received:
    13
    Some months ago I've done some research. Belize is the most cheaper place to do that stuff.
     
  10. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    trendfol: Did you mean that Belizean vehicle is the most cheap vehicle to do that stuff online? I've done similar research and got the same results and therefore I opened this thread to get more iformations about it especialy if combined with e-wallets as the conservative alternative. Thank you
     
  11. infoasian

    infoasian Supreme Member

    Joined:
    May 12, 2011
    Messages:
    1,335
    Likes Received:
    421
    Occupation:
    retired
    Location:
    Singapore
    Home Page:
    You will be taxable in CZ for the entire income of your offshore company during the year that you earn the money. You might get away by flying under the radar for years and moving to another country later, but it is risky as fiscal agencies have 10 years to file claims against you. Anyhow, virtual accounts are limited to small amounts of money, like 2000$. And no, you can not use nominee directors as beneficiaries of your offshore company. They just provide that service for the company registry, not towards a bank.
     
  12. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    Well if I will set-up an offshore entity with nominee services I am doing it and paying for it to be able to get anonymity. If I must everywhere use real name of the beneficiary of the company than either I am missing something or such set-up is just a theory and in practice it's worthless. My offshore company - Belizean Ltd. is not taxated in Belize for the entire worldwide income if I good understand. It's the company's income and not my income and I can just let the money on the account collecting for many years without touching them, paying out zero dividends for me. Must I still pay any personal income tax? If you own Czech Ltd., you don't must pay any personal income tax as well until you dont work for the company as it's employee and so touch the money. As for the beneficiary of the company there exist no personal income tax because your salary as beneficiary's income is not classified as a salary but as monthly "honorary" or dividends. Employees of the company and Self Employed individuals must pay personal income tax and not the company owners. For example any Czech Ltd. only must pay 19% corporate income tax from the entire worldwide income but this tax can be also very reduced by including allowable expenses ... As the beneficiary of this company i can get paid-out either in the form of dividends or in the form of monthly "honorary" or both and both dividends and honorary income are taxated with 0%. In any case to incorporate offshore only to avoid taxation is not my goal as you see with the example of CZ Ltd. My only 3 goals of setting-up such offshore company in Belize are to get anonymity, to avoid accounting and the simplicity of such incorporation and running offshore company. I can not good understand how to taxate a comapny whitch dont runs accounting, and, I am not lucky to pay for accounting extra fees...Yes virtual personal accounts are so limited but the business accounts are not so realy limited ... For example the PAXUM business account is llimited up to $25.000/day... Thank you for your oppinion and please sorry for my bad english!
     
    Last edited: Feb 3, 2014
  13. PROSONI

    PROSONI Newbie

    Joined:
    Feb 3, 2014
    Messages:
    4
    Likes Received:
    0


    hi...I can help you... for more pm me.
     
  14. infoasian

    infoasian Supreme Member

    Joined:
    May 12, 2011
    Messages:
    1,335
    Likes Received:
    421
    Occupation:
    retired
    Location:
    Singapore
    Home Page:
    if you setup a Belize company and live in Dubai and run an office from Hong Kong, your plan will work and it will be legal. But since you intend to conduct business in CZ and EU your way of avoiding taxes is 100% illegal. CZ authorities will count all income of your offshore company as your personal income and add a 100% fine when they catch unreported income. Of course there is a slim chance of being undetected id you are lucky and only deal with customers outside of EU. Let's say all your income is from Africa or Asia, then you might get lucky.
     
  15. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    May I ask you how to create an office in HK and if Exist another alternative countries? I am here living as expat many years so for me is natural to move anywhere if needed. I understand that in Dubai is zero personal income tax like in Quatar etc ... but also the living costs are much higher and in comparison with living costs in CZ are the living costs in Dubai extreme huge so on one side i save on taxes but on other side i spend the saved money for huge living costst... I can not understand how i could be detected if i never recieve any money into country as everything is cleared via central national bank and they have also no idea that something like Paxum exist. It works here so that if you recieve big amount of money regularily from suspicious sources, than your bank must report you to financial institution. If you dont recieve money, such report doesn't exist -> you don't exist for financial institution as well. In any case if to leave, for me would be much more acceptable to live in Hong Kong or in Asia than in Dubai as i chronicaly like asian girls ;) Is here any solution? Thanks!
     
    Last edited: Feb 4, 2014
  16. Cappari

    Cappari Newbie

    Joined:
    Dec 3, 2013
    Messages:
    11
    Likes Received:
    0
    Hi Prosoni, many thanks for your comment! I would like to PM just as I am new here the system doesnt allows me to write PMs now until i reach min 15 posts so please wait a moment ... Thanx!
     
  17. OnlineA

    OnlineA Regular Member

    Joined:
    Sep 7, 2012
    Messages:
    280
    Likes Received:
    151
    There is so many good options...Carribean, South America, South-east Asia.
     
  18. tony_d

    tony_d Elite Member

    Joined:
    Jun 22, 2013
    Messages:
    2,581
    Likes Received:
    3,163
    Location:
    1600 Amphitheatre Parkway, Mountain View CA
    Hong Kong is the country of choice for many people in your situation... 0% tax on money earned outside HK, very strong banking system, and great people to deal with. What more do you want? :)
     
  19. TheBigSmall

    TheBigSmall Newbie

    Joined:
    Mar 7, 2014
    Messages:
    15
    Likes Received:
    0
    But for open bank account you must visit bank :(
     
  20. huned1988

    huned1988 Newbie

    Joined:
    Sep 11, 2014
    Messages:
    1
    Likes Received:
    0
    We have the same problem. Thanks for posting anyway. I am really glad I came across on this thread.