Many clients ask the same question –If my company’s registered capital is USD 50 000, can I have more money in my company bank account?
Answer is - YES!
Simply = registered (aka. authorized) capital is what is prescribed to your company upon registration, it is the amount of capital that a company is officially allowed to get from selling its shares, so to say, the initial investment you and your investors put up to get the company going!
What is in your company’s account is firstly, whatever is paid up, if required, and secondly, whatever you earn by providing whatever services you offer with your company.
Thank you for reading my post! And you are welcome to leave comments, feedback, suggestions for other posts or contact me for more information.
Some may have The David or Cellini to hide, some may want to hide their fortunes from their spouses, some may want to create a company to conceal their activities, there are many reasons for setting up an offshore company.
Having an IBC or a bank account offshore is not illegal! The illegal part is not declaring your income in your home country, just like I explained in one of my previous post The wise man and the foolish man OR smart ways to repatriate your offshore funds.
All of us must have heard or learned at some level about the recent leaks of secret banking information. As you know this was one of the biggest days in investigative journalism and will go down in history as one! After 30 years of careful investigations, The International Consortium of Investigative Journalists (ICIJ) obtained and went through “piles and piles” of files they gathered, which are said to be 160 times larger than the US State Department documents that were leaked by the Wiki leaks in 2010. Over thousand names were released, information from more than 120,000 thousand offshore companies and trusts was revealed, exposing many hidden dealings of con men, politicians and rich people over the world!
Apostille from French means certification. It is an international certification, which, in domestic laws, can be compared to a notarization. It is a procedure by which official documents issued in one country are certified in a uniform way, so that they become formally acceptable in all another signatory countries.
In general all documents that are meant to be presented form one country in another must be certified. Apostilled document does not require any further evidence to prove its authenticity. Only in cases when a country is not signatory country (member) to The Hague Convention, documents must go through the Embassy of the country of intended use for final legalization.
Little background on what is that in general?
A bearer instrument (aka bearer share) is a document indicating that the owner of this document has title to property, so who physically holds the bearer share is assumed to own the property. For this reason the main benefit is the ability to quickly and anonymously transfer the ownership of the shares.
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.
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