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Offshore Company
?
Noximus

10+ Year Member



 
Msg#: 3384300 posted 4:38 pm on Jul 2, 2007 (gmt 0)

Dear Friends,
I have a question about Offshore Incorporation.
If a company is incorporated in offshore zone (for example delaware) and I'm situated in Europe and I work there.
Should I incorporate some company in Europe too to have everything legal? or it's enough to have a company incorporated offshore and pay there small taxes?

 

boomtown123

5+ Year Member



 
Msg#: 3384300 posted 10:30 pm on Jul 2, 2007 (gmt 0)

You need to consult a lawyer on this one.

That being said, you should also note that in MANY countries, you pay taxes where the income was earned/generated.

International tax law is fairly complicated. Be careful. I don't know what country you're working out of, but as a general rule of thumb, governments are not stupid when it comes to collecting taxes. They want there fair share. It's usually not so simple that you can just create an offshore company and not have to pay taxes in your home country.

Good luck though!

Noximus

10+ Year Member



 
Msg#: 3384300 posted 2:40 pm on Jul 3, 2007 (gmt 0)

boomtown123,
Thank you for your comments :).

Is there anybody who can advise anything?
or has gone through similar experience?

LifeinAsia

WebmasterWorld Administrator lifeinasia us a WebmasterWorld Top Contributor of All Time 5+ Year Member



 
Msg#: 3384300 posted 4:08 pm on Jul 3, 2007 (gmt 0)

Is there anybody who can advise anything?

Yes, consult a knowledable tax professional and/or lawyer.

Unless someone is in the EXACT same situation as you, that person's advice may not be relevant. So many factors are involved, including (but not limited to) your country of citizenship, your country of residence, the location of your company, the type of company, etc.

Noximus

10+ Year Member



 
Msg#: 3384300 posted 5:18 pm on Jul 3, 2007 (gmt 0)

My citizenship, the country of residence and the country of working are the same, I'm in one of the post soviet countries. I plan to incorporate a company offshore, (not necessarily in delaware, maybe other place, not know yet). In case I incorporate offshore, what should I do in my country to be legal. Should I incorporate in my country too? or should I do anything in my country at all?

I know the best advice I'll get is from my lawyer and/or tax consultant in my country, but for now I need advice from those who have gone through this situation.

Noximus

10+ Year Member



 
Msg#: 3384300 posted 6:09 pm on Jul 5, 2007 (gmt 0)

Isn't there anybody at least from Eastern or Central Europe? Bulgaria, Romania, Poland, Latvia, Lithuania, Estonia, Albania, Czech Republic, Slovakia, Hungary, Croatia, Slovenia, Yugoslavia... or anybody?

Noximus

10+ Year Member



 
Msg#: 3384300 posted 9:57 am on Jul 7, 2007 (gmt 0)

Ok. I guess, what does mean the silence. Thanks :)

JohnRoy

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3384300 posted 12:09 am on Jul 23, 2007 (gmt 0)

LifeinAsia explained it best.

Gomvents

5+ Year Member



 
Msg#: 3384300 posted 3:30 am on Jul 25, 2007 (gmt 0)

I'm from Poland but it won't help... all laws aren't the same, sorry.

venelin13

10+ Year Member



 
Msg#: 3384300 posted 10:01 am on Aug 3, 2007 (gmt 0)

Here is the best solution:

Step 1: Register an offshore company.

Step 2: Let the offshore company register a new company in your country.

All of your clients will contract the offshore company and will pay to this company. The offshore company than will subcontract the other company from your home country, to do the project. The offshore company will pay the home country a price of, lets say 10% of the original contract. The other 90% will stay at the offshore company.

At your home country you will have very small income. You will probably no pay any taxes.

How to use the money from the offshore company?
There are various ways, depands of your local laws. For example, the offshore company may buy you a car, the offshore company may pay your rent/mortgage, the offshore compamy may cover your holidays expences. The offshore company may give you a bank card (credit or debit card) and can use it with no problems anywhere in the world. Also, you may be paid dividents from the offshore company. There is a big chance, the incomes from dividents to be subject to much smaller tax than the tax of the incomes.

shenbo

10+ Year Member



 
Msg#: 3384300 posted 3:39 pm on Aug 9, 2007 (gmt 0)

What about this:

Step 1: Register an offshore company.
Step 2: The same person registers an company in his home country.

And the offshore company subcontracts the projects to the home company.

Any difference from venelin13's solution? Maybe this way the offshore company is hidden from the home country...just my thought...

Fortune Hunter

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3384300 posted 9:36 pm on Aug 9, 2007 (gmt 0)

I agree, you need to consult and attorney and accountant in your home country and it sounds like someone that is familiar with international law. The variables are simply too different from situation to situation for us to be helpful to you.

My programmer (sub-contractor) and myself live in the same city, but our situations were so different that my corporate set up looks very different from his.

FH

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