It’s your own fault for not being wise enough when transferring offshore funds “home” and your own liability towards your local tax authorities. Some clients presume, “ok, the IBC is tax free, cool, that will do!” They don’t consider all consequences that they should have beforehand, they simply transfer money from here to there and then wonder why they have to pay tax and are accused of tax avoidance. Exactly for this reason we always advise clients to seek independent legal and tax advice from local accountant or lawyer.
Every individual is liable to their local tax authorities in regards to any income they receive, that’s just the way it is! Just like when you are self-employed you go and declare your income and pay tax on it as needed. Same way, when you get income from offshore entity, it is your responsibility to declare it and return tax on it. In most cases no one does this, subsequently, possibly, becoming an object for investigation.
Question to declare the funds or not is entirely yours, bear in mind that sanctions may be painful in case of problems.
Every offshore company in each of jurisdictions is required by law to have local registered address so called „minimum local presence”.
But for those who have some sorts of an active businesses „virtual office facility” might just be what they need! This is a paid service, which brings to life your already registered address. Virtual office has sub-services, which can be any or all of the following: full address for business correspondence, telephone and fax numbers, mail and fax forwarding service, document re-mailing and call handling service. These services create a more comprehensive “ground presence” for your company, giving the company a more “bricks and mortar” appearance in active trading situations. From your clients point of view, the fact that your company is registered in BVI, Belize or Seychelles as well as your office is based over there, will seem more real.
Some clients want to buy an IBC but don’t want to disclose any information from their side, while others order full management package and wonder why they are not indicated as shareholders…
When it comes to buying an offshore company, the distinction between shareholder and the ultimate beneficial owner (UBO) has to be clear. When you look at the names as such they already tell you that shareholder is the “holder” of shares and UBO is the real owner.
Little tip on how to run your IBC in a proper, safe and smart manner!
By default, clients, who order full management IBC, tend to get Power of Attorney (POA) with it. Why? Mainly in order to operate bank account associated to this company. And sure, how else would they manage the moneys in there, right?! Fair enough, this is common knowledge after all.
When you have an IBC, which is managed by nominee director, you cannot access bank account just like that, you need either POA (granting you the rights to operate bank account) or Bank Account Signatory (BAS) service (granting the account signatory right to our professional, who is either your company individual nominee director, or a party from the company, which is your corporate nominee director).
Many clients get confused when it comes to filling out our applications for the registration of their companies. Where is the confusion? I will try explaining this by using the mostly asked questions from clients:
What is authorized and paid-up capital?
Authorized capital (aka authorized share capital, registered capital or nominal capital) is the maximum amount of capital that the company is allowed to raise from its shareholders, in exchange for company shares (as stated in the Memorandum of Association). Part of the authorised capital can, and frequently does, remain unissued.
Enter your email address below to subscribe to our newsletter.