Investing in a Company or Fund that trades online is an activity that lends itself well to an Offshore Corporate Structuring plan.
How it works is:
(a) You incorporate a tax free Offshore Company (“OC”)
(b) You structure the Company in such a way as to ensure that the Company is seen to be managed and controlled from Offshore; This can/will be achieved by via deployment of a tax haven based Nominee Director (which is a service that OCI can/will provide)
(c) Your OC either signs a general investment agreement with the Fund Company or subscribes for shares in the Fund Company
(d) You advance funds to your OC
(e) The OC then advances funds to the Fund Company (see below “How to move money offshore” which explains your options in that regard)
(f) The Fund Company invests/trades your money
(g) The Fund Company pays a return periodically to your OC (e.g. monthly or quarterly or 6 monthly or yearly).
(h) Returns paid to your OC can be banked and or reinvested Offshore potentially free from tax
How to move Money Offshore
Depending on your individual situation there are several ways you might achieve this aim:
- You could set up a dual structure (i.e. an Offshore Company the shares of which are held by an Offshore Private Foundation). You would set up the Foundation in such a way so that appears to be a Charitable Foundation and then make regular donations to the Foundation (which would then transfer that money to the IBC e.g. as share capital).
- Set up 2 International Business Companies Offshore (i.e. “IBCs”). The first IBC you would enter into a speculative (e.g. high risk/potentially high return) general (long term) investment with. This IBC would then invest money with your trading IBC. The investment with the first IBC could be structured in such a way as to ensure that you won’t be paid a return on that investment for quite a while. If the IRS ever asks meantime whatever happened to the money you would just tell them I’m not yet entitled to a return.
- Convert your local money into bitcoins. Transfer ownership of the bitcoins to the IBC. Have the IBC convert the bitcoins into hard currency which the IBC would then use to invest in whatever.
- Engage a lawyer to DD on the Offshore Company or Foundation you intend to send money to. Whilst he’s making inquiries to confirm that the entity exists etc., (as you might do prior to a real estate purchase) you park the money you intend to invest in the Lawyer’s Trust/Client/Escrow Account. Once he’s completed his inquiries you instruct the Lawyer to send the funds from his Trust/Client/Escrow account to the Offshore Company or Foundation’s Bank Account
- “Gift” the money to a family member (or close friend) overseas and then have that family member transfer the money to your Offshore Company
- If you are holding funds in your own name you could set up a personal account Offshore and then transfer the money from your Onshore bank account to your Offshore Bank Account. Same could be done in the case of funds being held in a Company account onshore (i.e. you set up an Offshore Privacy Haven Account in the name of your local Company and have funds transferred from the Company’s Onshore account to your Company’s Offshore account). If you open the account in the right place onshore predators will really struggle to find out where the money went once it landed offshore.
- You could set up your IBC as an Investment Company and enter into an arms’ length general investment agreement (or loan agreement) with the IBC on commercial terms. Provided the IBC is incorporated in a Privacy Haven (and in a country which does not have a TIEA with your home country) no one should ever know that you actually own the IBC.
- You could withdraw your money from the bank in cash, use that cash to buy something of great value which is easily transportable (e.g. jewelry, gemstones, watches, an artwork/s, collectibles etc.) fly overseas with these items (ideally to the country where your Offshore Company has its bank account), sell them to a broker or privately whilst abroad and then deposit that money into your Offshore Company’s Bank Account.
- If you are an online trader (e.g. Forex/Commodities/Derivatives/Share Trader) you could open a Brokerage Account in your own name, transfer funds to your personal brokerage account, then open a Brokerage Account (with the same broker) in the name of your Offshore Company and move monies (as an internal transfer, i.e. beyond the view of “onshore” authorities) from your personal Brokerage account to the Company’s Brokerage account.
Local laws can have an impact. Hence it would be wise to seek local tax/legal advice before committing to embark on such an endeavor.