Offshore schemes

Offshore schemes

Offshore schemes for online businesses are a critical component for success. Why is it so difficult and important? There are two reasons: taxes and personal security.

The fact that the specificity of the Internet is that having registered a company, for example, in Belize, you can put servers there and provide services or sell virtual goods worldwide. It would seem that this is an ideal option that allows you to run a business without paying any taxes. Its implementation is elementary – it is enough to apply to any organization engaged in offshore companies and in a couple of hours a legal entity will be created for you, bank account will be opened and a director will be provided. But, unfortunately, this scheme will not “work”.
Forgive the bluntness, but doing online business from a domestic legal entity is, to put it mildly, not reasonable.

Alexey Zarin
Business in the Web
Offshore scheme with arrows

Offshore operations


Firstly, any Internet business is tied to acquiring, i.e. accepting payments with credit cards. The problem is that VISA and MasterCard almost directly prohibit banks to connect legal entities from the blacklist of the offshores. And payment systems either do not work with such companies or take “draconian” commission for offshore operations.

Secondly, the most interesting offshore technologies, such as hiding the names of beneficiaries or really anonymous bank accounts, work only with the most odious subjects of international law, and not by chance that the vast majority of medium and large companies refuse to deal with these jurisdictions.

Third, the server location in the remote corners of the world can not be done due to the poor Internet and having “fixed assets” with any other country leads to the appropriate legal and tax consequences in this state.

The list of troubles that result from attempts of self-contained “tax planning” is long. The possibility but to be arrested at the border of such states as the United States that believe that the taxes must be paid on profits received by their citizens regardless of where the company is registered. Of course, when carrying out Internet business such questions become particularly relevant.

For these and many other reasons, the development of high-quality offshore scheme is a prerequisite not only to minimize the tax base, but also as a matter of personal security of the owners of Internet companies.

Example of offshore scheme of online business

The model is fully legal, tax loss of ~1%, the beneficial owner cannot be defined.
Example offshore scheme

Correct offshore technologies

Another method is correct in solving problems of minimizing the tax base in offshore operations. Offshore companies are merged into structures with firms of respectable jurisdictions. Each legal entity in such offshore scheme is selected and registered for solving one or two problems in the state, the law of which allows solving them the best possible way.

Such offshore technologies require signing a large number of international treaties for their operation. The development of these agreements is itself a nontrivial task even for a specialist. Furthermore, in the process of developing schemes for offshore operations, one should always consider tax planning opportunities in carrying out international business.

Given the imperfection of the legislation in the field of Internet commerce and its contradictions even within such entities as the European Union, the development of quality schemes of activities using specific offshore methods is a task that should better be left to professionals.

Our services:

■ Development of tax-free schemes of carrying out Internet business
■ Connection of websites to offshore payment systems
■ Legal basis for withdrawal of financial flows in the offshore zones
■ Drawing up contracts in any language under the developed scheme
■ Registration and opening of bank accounts under the developed scheme
■ Opening foreign bank accounts for established companies
■ Risk assessment arising at each stage of operation
■ Creating structures of legal entities for your business model
■ Technical and legal audit of the project operations
Правильные оффшорные схемы

Main stages of cooperation
Costs and order of work

* The following is the most comprehensive scope of work. Of course, the real scenario of interaction is individual in each case.

1. At the initial consultation, the customer shows his business model, and our consultants offer preliminary versions of the project. The customer is told about the possible structure of legal entities, options for financial flows and separate agreements are scheduled with jurisdictions of dispute resolution, he is told about the matters of licensing and tax component. Grounds for proposed solutions are given. Preliminary total cost of the project is estimated. The cost of initial consultation is 120 euro.
2. The second step is to create a detailed scheme of the project on paper in the legal, tax, payments and IT sections. Usually the result of the work at this stage is one sheet of A1 or A0 of high detail and a few sheets of A4 with a phased implementation plan, costs and timing. Development of such a scheme and accompanying documents, depending on the complexity, costs from one to ten thousand euros. Terms vary from one to two or three weeks.
3. If necessary, the circuit of particular elements “in depth” can be made on the third stage. For example, in the case of procurement of goods of traditional medicine somewhere in Malaysia, our specialists may not have accurate information on the rules of bookkeeping and taxation in that state. In this case, for more information, you may be offered to order the local audit company elaboration of these issues. And obtain information about the need for licensing with real deadlines and cost “from practitioners” from local lawyers. Typically, the cost of such work abroad is dozens of times higher than in the Russian Federation and varies from 3000 to 50000 thousand euros. However, this step is optional.
4. The last stage is the implementation of the project itself. We carry out the following work for our clients:

• Registration of legal entities
• Obtaining the necessary licenses
• Opening an offshore bank accounts
• Drawing up and maintenance of contracts
• Connecting websites to payment systems
• Registration of trademarks
• Protection of intellectual property
• Other necessary steps to start a business
Typically, the cost of work at this stage varies from 5,000 euros for typical trading schemes to several million at the start of major international projects.
Скрытие имен бенефициаров и работа с евро-банками
Dear Sirs, we are ready to take on the full range of services on realization of your project. If you want to perform all legally significant actions by yourself, we are ready to provide you with an experienced consultant, who will accompany you on all the trips associated with the registration of companies and contracting. Please, contact us.