Offshore Companies And Accounts

[Nawtier]

Anyone had any experience with BVI companies and Isle of Man banking, particularly internet banking.

In particular re internet based income with any online payment system issues from merchants such as Paypal and the like ?

and overall ease of use, advantages, disadvantages etc.

[chesternim]

You post is a bit dated - so chances are you made a mistake.

My adviser explained clearly to me the pitfalls of putting your name on the company register as shareholder or director - and giving your passport to the bank for recording - if you are endeavoring to have complete asset protection or in tax planning.

If on the other hand you are setting up an IBC for international trading then being seen may not be a problem.

I can not disclose exactly how to effectively have bullet proof asset protection - but I can say that trusts are ineffective. If you need to assert your control over a trust in court then obviously you must disclose it's existence. So then POW your protection has vanished.

BVI companies are the easiest to manage they are readily accepted by most banks. Opening a bank account with a reputable bank is not as easy as many advisers would have you believe. as they are usually selling a slick system with flaws.

IF you have a visa card or mastercard your Government has that information from the card companies. The US govt was trying to get Paypal disclose data - but I am unsure where that has got to at present. But do not think that Paypal will hold out indefinitely. You have probably seen even Switzerland cave in to US pressure.

There are methods to legally eliminate tax and protect assets useful for internet businesses - but if you are thinking you can manage it yourself forget it - you are heading for a cropper . You need a legitimate offshore partner who does not need to hide anything who can manage the entire process under a joint venture arrangement. There are structures to quarantine the profits or reinvest - but obviously details can not be spelled out here.

[Nawtier]

You post is a bit dated - so chances are you made a mistake.

Not sure what you meant by this.

The same reason that I do not wish to house things here in Los would be the same reasons I do not wish to engage with a partner in some offshore jurisdiction to look after my interests.

That is just silly.

I have and always will try to control my own future as much as possible.....trusting thai authorities to help with that is just not going to happen, nor would I jump into bed with some strangers in a strange country that require partnership to transact privacy on my behalf.

I like to take care of things myself....that way if I <deleted> up....nobody to kill and I will not go to jail and leave my kids alone.

[chesternim]

You post is a bit dated - so chances are you made a mistake.

Not sure what you meant by this.

The same reason that I do not wish to house things here in Los would be the same reasons I do not wish to engage with a partner in some offshore jurisdiction to look after my interests.

That is just silly.

I have and always will try to control my own future as much as possible.....trusting thai authorities to help with that is just not going to happen, nor would I jump into bed with some strangers in a strange country that require partnership to transact privacy on my behalf.

I like to take care of things myself....that way if I <deleted> up....nobody to kill and I will not go to jail and leave my kids alone.

No harm with the choice you made - as it is sensible. Certainly it is preferable than trying to do something yourself which you have no experience skill or training in - nd stuffing it up for sure - so that you would more than likely end up in jail!

Your choice of partner with the taxman who gets his share without contributing towards your business profits is one way to go. In contrast there are many successful business partnerships throughout the world. If you can't trust anyone then of course forget about a JV or partnership.

Look at it as an investment. You can have 100% certainty the taxman will take a slice of your money or you can have uncertainty of whether a business partner might shaft you. Clearly you should not commit all your capital etc immediately to any venture or investment. Test the water slowly and wade in when you have certainty and knowledge. It is like learning to swim. You can't learn if you never get wet. But if you dive in the deep end before careful study or at least some testing you can easily drown.

Best wishes which ever way you choose.

[Naam]

My adviser explained clearly to me the pitfalls of putting your name on the company register as shareholder or director - and giving your passport to the bank for recording - if you are endeavoring to have complete asset protection or in tax planning.

= clear evidence that your adviser is (to put it politely) not a knowledgeable adviser. an offshore company is normally formed to protect the anonymity of the owner(s)/shareholder(s) which can be easily achieved in different ways. but no offshore company can conduct any business without access to a bank/financial institution. and that is where reality starts and anonymity -as presented in Hollywood movies and novels- ends!

no corporate bank account (except publicly traded corporations where the establishment of beneficiaries is waived) without natural person(s) as beneficiary(ies) and/or general power of attorney without laying all cards on the table (submission of passport stating citizenship and proof of residence); the latter to be updated periodically based on the individual demands of the bank.

[Nawtier]

I searched for info on this last night after making this thread.

Found lots of info, still reading it all.

I am wondering re the issues of paypal or similar payment facilities with a company registered in BVI, accounts in BVI, but the main operation base of the websites being in Thailand, even if housed elsewhere.

[Naam]

BVI company ok, nobody cares about operation base but forget BVI bank account operation as you won't find any BVI bank who is willing to deal with your planned operation. i don't want to discourage you but the latter applies to the majority of other banks in other locations too. best advice i can come up with is Hong Kong using an agency for BVI company formation and assisting in establishing a corporate account.

caveat: before establishing the corporation make sure that the bank you select specifies exactly what documents are required for the corporate account as demands vary considerably.

[chesternim]

My adviser explained clearly to me the pitfalls of putting your name on the company register as shareholder or director - and giving your passport to the bank for recording - if you are endeavoring to have complete asset protection or in tax planning.

= clear evidence that your adviser is (to put it politely) not a knowledgeable adviser. an offshore company is normally formed to protect the anonymity of the owner(s)/shareholder(s) which can be easily achieved in different ways. but no offshore company can conduct any business without access to a bank/financial institution. and that is where reality starts and anonymity -as presented in Hollywood movies and novels- ends!

no corporate bank account (except publicly traded corporations where the establishment of beneficiaries is waived) without natural person(s) as beneficiary(ies) and/or general power of attorney without laying all cards on the table (submission of passport stating citizenship and proof of residence); the latter to be updated periodically based on the individual demands of the bank.

Far from it - you have in fact reiterated exactly what my adviser told me.

That is precisely why you need an Offshore Partner who can attend to all the formalities and show their face etc. in setting up the Corporate bank account.

How you control that is not something to disclose in an open forum - but it is usually why most people balk at the idea of trusting someone else. However once you have the right information and are more knowledgeable as to the procedures it is fairly simple to control the money yourself.

There is no need to look outside the major banks if you have a BVI company - best ones seem to be HSBC, DB, Standard Chartered and Hang Seng

[chesternim]

I searched for info on this last night after making this thread.

Found lots of info, still reading it all.

I am wondering re the issues of paypal or similar payment facilities with a company registered in BVI, accounts in BVI, but the main operation base of the websites being in Thailand, even if housed elsewhere.

Regarding Paypal accounts if you are in Thailand you will not be able to obtain a Merchant Account for your website.

When I was in Hong Kong there were a few firms who provided merchant account facilities - but they cost about double what PP charges.

If you have a BVI Company it is best you have your Company bank account in HK not in Thailand

[Naam]

That is precisely why you need an Offshore Partner who can attend to all the formalities and show their face etc. in setting up the Corporate bank account.

and no power of attorney for the actual account holder/beneficiary? big joke!

[chesternim]

That is precisely why you need an Offshore Partner who can attend to all the formalities and show their face etc. in setting up the Corporate bank account.

and no power of attorney for the actual account holder/beneficiary? big joke!

I don't understand the joke unless you are paranoid? Ever used an accountant or settled a property transaction through a law firm?

You can become a bank account signatory without being a company director - and there are numerous legal devices for controlling the money. Not much value though laying it all out here.

[Naam]

a long time ago i decided to discuss the colours of a beautiful sunset with blind people only for a limited time. that set time has been used up as far is this thread is concerned.

[chesternim]

a long time ago i decided to discuss the colours of a beautiful sunset with blind people only for a limited time. that set time has been used up as far is this thread is concerned.

Sort of like the blind leading the blind?

[nemo38]

I had a Bahamas company which was administered from the Isle of Man. The administration company supplied two directors and a secretary for the company. I didn't get to control the bank account. I ran the company for 15 years. I managed to get them to open a brokerage account in London, and another in New York and allow me to run them with a power of attorney. I managed this because a barrister friend of mine worked at the firm. I don't think that would be allowed now. Look outside the Isle of Man.

Paypal don't deal with tax havens, or low tax juristications - as far as I know. Very interested to hear otherwise. They are very sensitive about this. Paypal will freeze your account at the slightest suggestion of impropriety. Their attitude is outrageously cavalier in dealing with customer complaints. Google to find out what other people say about them. There is a web site called something like paypalsucks.com which lists many complaints.

Things are becoming very tricky in the world of international banking. My personal brokerage a/c in NY recently stopped me writing cheques (checks in US terminology) because I was using the account as a "pass through account". I was using that a/c to avoid high paypal currency conversion charges, and using my dollars in other ways. Anyway, no longer.

Good luck.