Advanced Offshore company Structure!

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

14 Jul 2015#1

To show you what would be a very good and advanced way to secure your privacy and anonymity when trading online or even offline and to protect your tax privacy, we have made the beloq draw for your convience.

It is not the most sufisticated setup, I admit, but it is much better than a simple offshore company without nominees nor a holding company holding the shares in the trading company. Also if the purpose is to do Internet business then still you will need to make up with your self if you rather want to form a Cyprus or BVI company.

Cyprus has the benefits mentioned in the red box above, a BVI company is most often used only for the purpose to apply for a Merchant Account within the EU boarders and from there to transfer the money to the holding company in case something goes wrong.If you decide to register a BVI company for the above mentioned purpose, you will not want to start to form the Seychelles holding company, you will want to wait and start with the BVI company formation first, then open a bank account for instant in Cyprus and then apply for the merchant account for this company.

Once the merchant account is approved and operative, you form the Seychelles Holding company and transfer all shares from the BVI company to the Holding. The reasons for why we are doing it this way is the heavy due diligence the merchant procider must do. They will require all DATA including beneficial owner data of ALL involved entities in such a structure. So at this point you want have any anonymity towards your payment processor but once verything is transfered and nominees are appointed it requires only 1 letter (we will provide) to transform the whole thing to a fully protected setup.

If you have any questions or need to know more, just post here so I will be happy to help you. I will add a few more scenarious during time for instant how a Trust or Foundation will add up another layer of protection.Please note that the setup above is not a static solution that may fit's everyones needs, it is an example on how things can be done. Furthermore you will note that this is not a cheap setup and it requires knowledge from our experts to set this up correctly and also to be supported afterwards if you should ever get any troubles with any tax authority, lenders or creditors, that's where we are coming into play again after the setup and that's again where many Agent's fail!

Last edited: Oct 16, 2016

negonHigh-Ranking Operative

Joined: Jun 2011
Messages: 3,970

16 Oct 2016#2

Great share thank you. Is this still stomething that will work now with all the changes?

allthewayupNew Member

Joined: Dec 2016
Messages: 18

2 Feb 2017#3

Yea interested to know that also ^^

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

2 Feb 2017#4

Forget about it, it's an old thread almost 2 years! There is no privacy as soon as you open an bank account for this structure! You can avoid tax this way but not privacy.

After all what we know today it's obvious that a company formed with fake documents will provide the best privacy ever. And if we can use services like WorldCore, LeuPay etc. services for our business it's even getting better.

A Seychelles company can be good for some extend of privacy but if I were in a situation where I had lenders, creditors, tax office or someone else in the heels I would not relay on that!

All agent's around are collecting so many documents for their KYC compliance, that as a regular person providing my real documents, I would be scared!

BrutusActive Recruit

Joined: Jun 2017
Messages: 136

10 Jun 2017#5

Still a good read. @Admin how would one go about using darks to setup a company and bank account?

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

27 Sep 2017#6

You can't use darks for the bank account! but only for company and EMI account. It's pretty much the same procedure as if you use your own docs.

EducateActive Recruit

Joined: Nov 2017
Messages: 357

26 Mar 2018#7

Am I correct in assuming that nominee directors don't save from CRS reporting?

Ok, let us say you put nominee director, but any bank or financial institution will still want to know who is the beneficiary owner.

So you will provide BO data and this BO data will get automatically shared with the jurisdiction of BO at end of year, no?

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

2 Apr 2018#8

Educate said:
Am I correct in assuming that nominee directors don't save from CRS reporting?

that's true not anymore any longer.

Educate said:
So you will provide BO data and this BO data will get automatically shared with the jurisdiction of BO at end of year, no?

That's how it will work as per April 2018

In the past it was still possible to avoid to get our information revealed to the local tax office by using nominees, Seychelles company and Cyprus bank account! Today the banks in Cyprus still say they won't report in these setups but honestly, I don't trust them with this answer.

EducateActive Recruit

Joined: Nov 2017
Messages: 357

2 Apr 2018#9

I have a few ideas how this might be avoided:

1) Provide incorrect information. Show business information jurisdiction as the offshore jurisdiction and not your own. If you indicate that business activity is in BVI, then they will send that info to BVI.

2) Where possible use data that is incorrect and does not let the country identify who you are. This is complicated and similar to darks.

3) Close accounts before end of December 31 or empty them so 0$ gets sent as balance.

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

2 Apr 2018#10

Educate said:
3) Close accounts before end of December 31 or empty them so 0$ gets sent as balance.

according to various posts here on this forum it won't work that way. Accounts will be reported if closed or not. But if you think it works please let us know in Jan 2019 :) It would be great if this is a real solution.

Poin two is easy also with real darks if you just can sign the required documents, which shouldn't be too difficult if you are good in photoshop.

EducateActive Recruit

Joined: Nov 2017
Messages: 357

2 Apr 2018#11

Admin said:
according to various posts here on this forum it won't work that way. Accounts will be reported if closed or not. But if you think it works please let us know in Jan 2019 :) It would be great if this is a real solution.

Poin two is easy also with real darks if you just can sign the required documents, which shouldn't be too difficult if you are good in photoshop.

Yes, it is possible that they will get reported as closed accounts, BUT leaving 0$ at end of year balance DEFINITELY WORKS with paypal and services that report BALANCE. So your government sees that you hold 0$ in some offshore bank account, big deal?

As for the darks - I would be hesitant in holding large sums on a dark account that can be closed at any time due to "suspicious activity". And what if they require Skype video call consultation?

JohnLockeOffshoreCorpTalk ownerAuthor

Joined: Dec 2008
Messages: 15,888

2 Apr 2018#12

It depends on the activity, but most often the banks don't ask for video call if you keep the account with a low number of transactions and not ultra high amounts the first year.. after that they won't require it... that's at least what I have seen during the years with banking in Cyprus, Netherlands and Scandinavian.

EducateActive Recruit

Joined: Nov 2017
Messages: 357

2 Apr 2018#13

Also, I think putting money in stock investments is another way to evade reporting. US does not report if you hold stocks in their brokers. At least not for now, it may change in future.

HHUNew Member

Joined: Oct 2018
Messages: 11

7 Dec 2018#14

Will this setup works for online activities ? is it easy to open a Bank account ?

SpinatFake user - Alias of JohnLocke

Joined: Jan 2009
Messages: 2,452

13 Dec 2018#15

As long as you have a legal business and you can provide a good business description + website it's possible to open a bank account.

I got allocation number yesterday from Bank of Cyprus for a Cyprus company owned 100% by my Seychelles holding company!

SpinatFake user - Alias of JohnLocke

Joined: Jan 2009
Messages: 2,452

30 Jan 2019#16

I paid 5K for my setup, the company was 2 weeks and bank account took ages think it was 4 or 5 weeks. They required a quick skype call which took only a few minutes I think.

pippoNew Member

Joined: Dec 2019
Messages: 26

22 Jan 2020#17

Admin said:
Forget about it, it's an old thread almost 2 years! There is no privacy as soon as you open an bank account for this structure! ou can avoid tax this way but not privacy.

As far as I understand, the post is four and a half years old now, the privacy is not guaranteed anymore, but tax optimization is still possible as of 2020, right? Lurking around on the forum, I see you @Admin still claim this structure bearing no problem in the present days.

So if I get you correctly this would be a basic structure for BEPS, that's not prosecuted by any authority "as long as we're not talking about millions", as you write.

In other words, if I used a Seychelles company to offset the profits of any other EU company, say a German company, I'd get immediately busted by tax inspectors, but if the flow is - Any EU country - Cyprus - Seychelles, then it's less dangerous?

If yes, I like that :)

I was wondering, is there any other known setup that works as well as EU-Cyprus-Seychelles?

You claim this is not a cheap structure. Fair enough, if done for the right company, shifting say 200k a year would save somewhere in the range of tens of thousands. Totally worth the fes Ks you need to get this done....

GediminasEstablished Presence

Joined: Oct 2019
Messages: 1,727

23 Jan 2020#18

pippo said:
As far as I understand, the post is four and a half years old now, the privacy is not guaranteed anymore, but tax optimization is still possible as of 2020, right? Lurking around on the forum, I see you @Admin still claim this structure bearing no problem in the present days.

So if I get you correctly this would be a basic structure for BEPS, that's not prosecuted by any authority "as long as we're not talking about millions", as you write.

In other words, if I used a Seychelles company to offset the profits of any other EU company, say a German company, I'd get immediately busted by tax inspectors, but if the flow is - Any EU country - Cyprus - Seychelles, then it's less dangerous?

If yes, I like that :)

I was wondering, is there any other known setup that works as well as EU-Cyprus-Seychelles?

You claim this is not a cheap structure. Fair enough, if done for the right company, shifting say 200k a year would save somewhere in the range of tens of thousands. Totally worth the fes Ks you need to get this done....

Cyprus applies special tax incentive which in certain circumstances allows reducing effective tax rate up to 2,5%. In that case, it would be more worthy to work only with Cypriot company without spending money on offshore formation and maintenance. That costs could be better invested in the substance of Cypriot company.

pippoNew Member

Joined: Dec 2019
Messages: 26

30 Jan 2020#19

Gediminas said:
Cyprus applies special tax incentive which in certain circumstances allows reducing effective tax rate up to 2,5%. In that case, it would be more worthy to work only with Cypriot company without spending money on offshore formation and maintenance. That costs could be better invested in the substance of Cypriot company.

This is very interesting @Gediminas .

I did some research, and the only thing I found that could match what you are suggesting is the Cyprus IP Box. Is that what you are referring to?

What if the company wasn't setup to sell IP? Is there a reliable strategy for reducing the tax burden without the use of an offshore company, or the BEPS scheme suggested by @Admin would be the most viable way?

GediminasEstablished Presence

Joined: Oct 2019
Messages: 1,727

31 Jan 2020#20

pippo said:
This is very interesting @Gediminas .

I did some research, and the only thing I found that could match what you are suggesting is the Cyprus IP Box. Is that what you are referring to?

What if the company wasn't setup to sell IP? Is there a reliable strategy for reducing the tax burden without the use of an offshore company, or the BEPS scheme suggested by @Admin would be the most viable way?

I meant NID (Notional Interest Deduction), not IP box. IP box is difficult to set up after BEPS.

Last edited: Jan 31, 2020

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