Best Setup for anonymity in EU

businessLBNew MemberAuthor

Joined: Oct 2022
Messages: 34

22 May 2023#1

Hello everyone.

To give you a bit of context, I need to set up a new business and my primary concern revolves around maintaining a high level of privacy and anonymity.

This business is mainly going to sell marketing/digital services (purely legit).

I know that complete anonymity is increasingly hard. But I need to find ways to create a buffer (buffers) between the entrepreneur's personal identity and the business.

I would appreciate your insights on:

1. Finding a good setup for this, where the French government (or the EU in general) would have a difficult time tying me up with the business. Maybe through offshore incorporation and through a bank not part of CRS? Or maybe set up with multiple layers of trusts/LLCs etc?

2. What kind of business structures would be suitable for maintaining privacy/anonymity?

Looking forward to your wisdom and advice on this.

SolsOffshoreCorpTalk moderator

Joined: May 2019
Messages: 6,542

23 May 2023#2

You basically have three options:

Forget anonymity against governments. If they really want to, they can find out (automatically, upon request, or through data leaks) and you're fighting a losing battle.
If you're doing it to try to engage in some pre-2010s tax evasion scheme that's DOA nowadays, instead consider moving to a place with more favorable taxes (Cyprus, Malta, UAE, and so on).
Declare a synthetic/false identity as UBO.

Layers are in may cases pointless because the bank will identify you as the UBO through it all. If you want to join the roving band of people constantly on the hunt for non-CRS banking, that's going to be a lot of sleepless nights as you every six months or year have to find a new bank in a new, even less stable country than before.

businessLBNew MemberAuthor

Joined: Oct 2022
Messages: 34

28 May 2023#3

Thank you very much for your answer, I really appreciate it.

I think the best I can do is have a business in France and a business + bank account in Nevis, UAE, or another similar jurisdiction for low taxes.

Would you see any issue with this as a possible solution?

SolsOffshoreCorpTalk moderator

Joined: May 2019
Messages: 6,542

29 May 2023#4

businessLB said:
Thank you very much for your answer, I really appreciate it.

I think the best I can do is have a business in France and a business + bank account in Nevis, UAE, or another similar jurisdiction for low taxes.

Would you see any issue with this as a possible solution?

A lot, because from your brief description it sounds like you're going to attempt the kind of tax evasion and offshore company setup that used to be popular in the late 1990s and early 2000s, but which is not recommended nowadays. Have you looked into tax residence and CRS?

Today, people focus on residence. Don't like French tax? Don't live in France. You won't have to worry about the French government then. That's much safer than hoping a Nevis/UAE company and bank account somehow don't get on the French authorities' radar.

businessLBNew MemberAuthor

Joined: Oct 2022
Messages: 34

29 May 2023#5

Great, thanks again.

Yes I have done some research but in no way I am an expert (at all as you can clearly see).

I have a lot of French friends who are doing the following setup:

- have a micro company (self employed), where they get paid enough to live (around 40k - 50k per year) - and pay the 25% tax associated with this micro company.

- And have another French company, a SASU (single shareholder SAS), to funnel the rest of the income generated, where they are not taking any salary to not pay the social contribution and pay "only" the 25-30% company taxes on the profit. And they maximise spendings on this company, buy real estate, etc”¦

This setup was recommended by a lawyer (not mine) and I was wondering if it would be a viable option (and legal).

Small precision, the micro company and the SASU would not be paid by the same company and have different activities.

Thank you again for you help, it's very much appreciated.

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