Offshore LLC-Does this make sense? Thoughts - Suggestions Welcome.

Hi folks,

I am in a bit of a quandary and hope you guys can help.

My company is an Enterprise focused Blockchain IT Solutions & Service Company and by that it effectively means we have to accept payment in Crypto. We have 4 share holders, 2 from the US (residing in US), 1 from Romania (residing in Romania) and 1 from India (residing in Spain).

Although we currently maintain a public blockchain, our core competency is in building products to be used on the blockchain. This includes blockchain based payment processors, Crypto to Fiat converters, Permissioned Blockchains for businesses and enterprises. At some point in the near future may want to venture into running a legal crypto exchange (thats for laters, though).

Currently, given our international team and the high liability clause we opted to go for a St.Kitts & Nevis Holding company - this is currently in progress (with a bank account opening option). But since we offer our services world wide and require freedom of operation/services we are probably rethinking a single entity approach. Also EU blacklisting St.Kitts earlier this month hasnt really helped.

Do you think, it make sense for us to

1. Use Nevis as the holding company
2. Create a subsidiary in Cyprus with a EU/HK bank for EU/WW dealings
3. Apply for a financial services license in Belize for our payment processor and Crypto Exchange (with KYC & AML compliance).

If we do that , what complications do you see for the company / dividend payout / company tax issues ?
For crypto gains / conversion to fiat and for depositing the profits in our company account, is there something better than mistertango?

Is there another approach you would suggest?

Any help is appreciated.

Forgot to add that, for non crypto business, we will be opening regional offices (US/EU) under the holding company that cater to fiat paying customer for IT solutions.

Thanks!

auric said:

Any link to that information?

St. Kitts & Nevis Added to EU Tax Haven Blacklist - The St Kitts Nevis Observer

You need a crypto friendly country which Cyprus is not. You want to look into Zug / Switzerland, Malta or Belize with financial service license. It sounds like you have the capital behind you, so incorporating your business in one of the three mentioned should not be a problem for you!

Switzerland requires a resident director (which we dont have ) or a foundation (tricky at times - case in point, Exclusive: Tezos founders push for legal bailout from Swiss foundation ) and it is a lengthy process.

Malta is an option, but taxes arent exactly favourable I reckon.

Belieze /Panama is a good bet we think, but we need to find a good structure to sort this out given US shareholder + Spain's CFC. Have been informed that good thought needs to go into the structure , something like:

Belize Foundation - Belize / Panama Company for normal IT products. + Belize/Panama financial license subsidiary for crypto exchange + Bank that supports crypto conversion & transactions.
Thats where we need help- to establish the right structure.

Not overtly worried about privacy as dividends will have to be reported in our resident countries, as we want to be legally compliant, but save taxes on company income and trades.

@auric thoughts on Isle of Man?