1. You download, install, run and read the Black Book Of Ecommerce.
2. You pay the offshore bank account and company formation consultancy fee.
3. T. O' Donnell gives hands-on help.
4. You get the offshore company formation or bank account you want, guaranteed.
Oryou can just read the free ebook, do a bit of research, and save yourself a few quid.
Don't waste your money on sites offering offshore 'packages' for thousands of dollars. I bought one of those in 1997.
All I wanted was an (international) merchant account, so I could sell services from my website. These were thin on the ground in 1997, especially in the UK.
So I used one of those websites to get it.
After a couple of years the issuing bank went bankrupt. I also found out the yearly company registration fees weren't being passed on to the national registrar.
Result: I spent about £3000 for nothing. I had no merchant account, and my 'company' was in bad standing.
Others lost much more. Because it's offshore, the people offering these deals know you can't complain to your local authorities. So they can do what they like.
For a small fee, I'll direct you to the the real thing, explain what you need to do, and hold your hand. You'll save yourself a ton of money and heartache.
Or you could take a chance, and buy one of those packages. After all, they can't all be crooks, can they?
---- T. O' Donnell, London, November 2004.
You may need:
Your own offshore company.
It's the body (corporation) in whose name your offshore bank account exists. You transfer funds to it, or it earns them direct. It exists in one country. You live in another. Your account can be in a third.
You may avoid tax, depending on where you live.
You have limited liability if someone sues you, and the fact it's offshore makes it harder.
As a legal entity separate from you, it can own property, enter into contracts, or be sold.
Offshore bank account - possible paperwork:
In addition to the Application Forms:
For each signatory (Corporate or Personal Account):
Notarized copy of ID (Passport or Driver's Licence) ;
Original reference letter from a current banker, lawyer or chartered accountant;
Original utility bill or similar showing the current address of the signatory.
Corporate Offshore Bank Account
(In addition to the above. May need to be notarized. You get these after your offshore company formation):
Board Resolution;
Copy of the company's Certificate of Incorporation;
Certificate of Good Standing (if the company is more than one year old);
Copy of Bye-Laws and Articles of Incorporation;
Subscribers Resignation;
Copy of the Resolution for Appointment of Directors.
Banking is its largest industry after tourism and duty-free sales. Discreet banking, modern communications and zero income tax. Totally self-governing. An offshore bank account is automatically multi-currency. Visa and Mastercard credit and debit cards can be obtained. No minimum deposit or bank references. You must be there in person to open your the account. If you want VIP treatment straight away, it's best to have an introduction from a local. Numbered accounts are available to large depositors. Banks are extremely conservative and stable.
Belize
British Dependency. Official language spoken is English. Spanish is widely spoken. No recognition of foreign judgements. Total privacy for IBC's. Permits bearer shares. No registration of shareholders required.
Bermuda
British Dependency. No taxes on income, profits and capital gains.
British Virgin Islands
Requires personal appearances to open some kinds of offshore bank account and other transactions. No taxes on IBC's. Weaker trust laws. Banks monitored by the Bank of England means stability but also possible spying.
Campione (Switzerland)
Italian territory, but located in Switzerland. Tax free. Both Swiss and Italian private banks are represented. A full range of international banking facilities are available.
Cayman Islands
Largest offshore banking centre in the world. No capital gains taxes, income taxes on profits of any kind. Have caved in, in the past, to US authorities. IBC set-up is expensive and IBC's must have local meetings.
Channel Islands (Jersey and Guernsey)
British Dependency. Have their own legislatures, levy their own taxes and have a separate legal system. Are not part of the United Kingdom. Internally self-governing and issue own passports. The UK is responsible only for defence and foreign affairs. Interference by UK always a possibility.
Cyprus
The authorities are introducing secrecy regulations and tax incentives. Full service anonymous offshore bank account facilities available but banks there are particularly strict ID requirements. Division between Greek and Turkish rule and possibility of another war are problems. EU member.
Gibraltar
British Dependency. Modern communications, reliable postal services, company formations, sophisticated banking. Minimal contact between Gibraltar and Spain. Only part of the EU which doesn't levy Value Added Tax. Register of shareholders is required to be kept in Gibraltar. Shareholders and directors are public record requiring nominees. Gibraltar is highly stable with no recognition of foreign judgements. No income tax for IBC's and a two year statute of limitations for fraudulent transfers. Part of EU.
Isle Of Man
British Dependency. Similar to Jersey and Guernsey. Separate from the UK. Internally self governing and issues its own passport, levies its own taxes and has a separate legal system. UK is responsible only for defence and foreign affairs. Interference by UK always a possibility.
Luxembourg
One of the oldest and most established offshore banking havens in the world. Banking secrecy laws were recently reaffirmed. Recommended for Non-EU Passport holders. Full internet banking and accounts can be opened by mail. Part of EU. EU may attempt to limit banking secrecy and co-ordinate taxation in future.
Liechenstein
Smaller and more discreet than Switzerland. Same currency. It would be very difficult to get tax spies into the banking centre of a small country of only 30,000 people. Liechtenstein is less accessible as it doesn't have an airport itself.
Malta
Has strict secrecy provisions and double-taxation treaties with the EU and other European countries. Offshore bank account can be opened by mail and references are not always required. The banks are stable, and offer secured Mastercard and Visa credit cards. Internet banking not yet available at the time of writing. Service is sometimes less than prompt. Shows a healthy disrespect for unwanted foreign influence in its domestic affairs.
Monaco
Traditionally a tax haven for Italians. It has highly skilled international bankers and a wide range of banking services. $100,000 upwards minimum opening balance and you must travel there in person to open your secret offshore bank account.
Panama
Good for offshore company formations with low annual fees, low formation costs, solid secrecy provisions and the benefit of zero tax on income earned outside Panama. Has a sophisticated international banking and communications system. No need to file annual accounts or returns.
Switzerland
Swiss banking secrecy is strictly regulated. They attach greater importance to the respect of privacy than they do to taxation matters. Does not consider tax evasion to be a crime. Will not comply with any requests for co-operation under any tax-related mutual assistance treaties which are received from foreign governments. Most famous offshore bank account provider in the world.Swiss have caved in to American pressure in the past.
United Kingdom (Britain)
London is still Europe's financial capital. Banks are straightforward to deal with. Getting a bit like the USA with obsessions about money laundering. Part of EU.
USA
A Delaware or Wyoming LLC corporation can be used to maintain zero tax liability, at minimal cost. An American LLC does not look like a tax avoidance device, thus conferring more respectability.
Beware!
NOTES:
1.Do not use services ...
... which offer bank accounts in Eastern European countries.
Small banks can easily go bust. Avoid Latvia!
2. Do not give anyone Power Of Attorney.
You can wave your money goodbye. The problem is:
How can you obscure that you are the owner of the offshore bank account, without losing control of it?
Don't get too clever, or too greedy.
3.Avoid sites where:
The business address is a P.O. Box;
The site is on a free web host;
The site is badly translated into English;
The site has not been updated recently e.g. the Copyright reads 2001;
They've only been running for a few years.
They offer a range of dubious products - second passports, citizenships, anonymous debit cards ...
You cannot pay via credit card. It's much harder to get refunds on banker's drafts, Western Union etc.
The prices are cheap. They may be a bargain, or they may just set you up with a sub account, or in a small, insecure bank!
They require you sign a confidentiality agreement, or you have the sense you are entering quasi-legal territory. Bogus offshore sites can threaten to report you to your tax authority if you question their methods.
21st June 2004: WARNING! Be sure you get the bestoffshore bank account or company formation. Do it yourself with TigerTom's The Black Book Of Ecommerce.
Can you trust a bank that offers anonymous bank accounts? Or a company that offers second passports or fake ID's?
