The anonymity of IBCs, also called offshore companies, is the reason for their misuse

Because of the strong anonymity an offshore company can provide, if it is setup correctly, it is often misused for money laundering and other activities, which violate the tax regulations in most countries.

Almost everyone knows than an offshore company can be used to protect your assets and can also be used as a vehicle to avoid or minimize tax. In many cases an offshore company (eg. A company incorporated in Cyprus but operating in another jurisdiction) is legally formed to give the owner several benefits that are unobtainable through a local company. One such benefit is the right to obtain a loan in the name of your company. Many European countries forbid LLCs and LTDs to borrow money, as it is in violation with the tax authorities. However, it is of great benefit for a start up entrepreneur if he can get the protection of a regular LTD and still be able to finance the company’s activities, including his own salary.

How is it possible to get more money out of an IBC / Offshore Company, for instance in Cyprus?

It is actually easier than you might think. Normally you need to have approximately EURO 17.000 to form a LTD in a European country. There are exceptions to this rule but 80% of the time this will be the case. Once you have establish the company with 100% of the shares equaling a value of EUR 17.000 then you are unable to draw any of the money out from the company for yourself.

A Limited Liable Company needs to have the ability to be liquid and must assure its trading partners that you have at least have the EUR 17.000 in assets or cash in the company. If the owner of that company by law were able to just take out the money exactly before the company, for any reason, declares bankruptcy then it would favor himself.

With a Cyprus Offshore Company or any other offshore company you are allowed as a resident of a European country to take out loans against the company. Let’s say your company starts to generate a profit, you can then take money out of the company in two ways. One is as regular salary, which will cost you to up to 50% of your salary, as you will be forced to pay the tax authorities. This is undesirable and presents many business owners with a problem, they need to take money out of their business but they don’t want to pay the high tax rates associated with a salary. So what can you do in this situation?

The second way to take money out is as a loan against the company. This loan can be made over a period of 10, 20, 30 or even 50 years. Once the money reaches your account you need to report it to your local tax authorities as a loan. Because it is a loan, and not a profit or income it cannot be taxed.

I hope you fond this article informative. More tips and tricks for how to make the most from your offshore company setups are coming in the near future.

Register an Offshore Company and increase your profits and get in front of the competition!

The financial market has changed dramatically in recent years and if your business isn’t increasing its profits from online sales then you are falling behind. If you want your business to thrive in this market then you need to do two things. Firstly, you need to keep your prices competitive. More online shops and businesses are opening daily offering competitive prices on products and services, if you want to stay in the game you need to be competitive. You also need to increase the amount you earn on every product you sell.

By simply lowering your prices it is likely that you will easily drive a lot more sales to your business, but you will soon face the problem that you need to sell more products than before just to make the same amount of money.

A simple calculation which we did for a new client was to consider to take the entire business Offshore, for Instance in Cyprus. The payable tax for international business companies is 0% tax which means if you lower your pricing per item with let’s say 15% (which would be the tax you had to pay if you continue with your company incorporated in your local jurisdiction) then you won’t lose any money by reducing the price on your products or services but you will be very competitive in the market and are more likely to increase your sales volume and profit.

When growing your business it is important to consider every possible method of reducing your overheads so that you can be competitive in the market but still maintain good overheads.

A market survey recently made in Europe has shown that we as consumers are extremely willing to spend money even in the current financial crisis, if we can get the product or services we need at a reduced price.

The next question you need to ask yourself is “How can I register a Cyprus Company so I can reduce my tax?”

CCLOGIC Ltd has been in the Offshore Company Formation industry for years and has helped hundreds of businesses to move offshore and grow their businesses faster. Many businesses get stuck when they struggle to find the right Agent who can help them register their company quickly, securely and hassle free. At CCLOGIC Ltd we can help you register a Cyprus Company and open a Cyprus Bank Account within 7 – 14 days and ensure that everything is incorporated properly with Apostille of Documents and Company Certificates.

 

The Cyprus Bank Account comes with Advanced Internet Banking (e-Banking) as well as a multi currency account (eg. USD, EUR, GBP). Your Cyprus Company can be registered as an anonymous company with nominee shareholders and directors or with yourself or your holding company as shareholders. You and your business can enjoy a low 0% tax rate to the tax Authorities in Cyprus and conduct business worldwide with your Cyprus Offshore Company setup. You will have 100% assets protection and no limitations at all; any business can incorporate in Cyprus.

CCLOGIG Ltd is an official introducer for the major Cyprus Banks and can help you with your Cyprus Company Formation and the opening of your offshore Bank Accounts. However, this is not all we do! We have a broad knowledge about the difficulties of accepting credit card payments online and we have partnered with several Acquiring Banks around the world to help you open Offshore Merchant Accounts, which will allow you to securely and reliably accept credit card payments on your website.

CCLOGIC Ltd is an All in One Financial Service Agent whose goal is 100% satisfaction for our clients. Contact us today and let us help you to take your business to the next level and beat your competition.

The major benefits of establishing an Offshore Company, for instance in Cyprus!

A lot has been said about Offshore Company Formation and especially company formation in Cyprus. We regularly cover the topics of assets protection, how to establish an Offshore Company in Cyprus and Offshore companies in other countries.

While we do our best to give you in depth and ongoing information about the growing phenomena of having an “offshore company” we also want to prepare you for starting your own offshore company so that you can experience the benefits of low tax rates, no tax rates, complete anonymity and total asset protection. Whether you are deciding to incorporate your offshore company in Cyprus or anywhere else in the world, there are a few things of great importance that we think you need to know.

It is a well known fact that offshore companies allow you to protect and hide your assets from creditors and other claimants, but many believe that the establishment of an offshore company is illegal or at least unethical. This could not be further from the truth. Operating your business through an offshore company is a legal way to reduce tax and gain a greater level of asset protection, it is a method used by thousands of wealthy people and it is most certainly not unethical. It makes sense to protect your assets from creditors and it makes sense to pay less tax so you can grow your business faster. Operating an offshore company is completely legal as long as you comply with local regulations in the jurisdiction your company is incorporated in.

Some people, who believe offshore companies are unethical, will argue that many people have misused these corporate vehicles to hide assets illegally from creditors and other claimants, such as spouses, heirs and tax authorities. The will also argue that

“ The obscurity provided by certain types of corporate vehicles can be exploited to conceal the existence or ownership of assets in order to keep them out of the reach of creditors and other claimants. In some bankruptcy cases involving individuals, for example, funds have been siphoned out of one jurisdiction through shelf companies and trusts incorporated in other jurisdictions where it was extremely difficult to trace beneficial ownership”

There are a variety of ways to use offshore companies illegally and unethically, but there are also ways to use local companies and bank accounts unethically also. It is unethical to hide your assets from people, creditors or claimants who are entitled to them.

However, despite their occasional misuse, offshore companies present business owners with a variety of benefits that will help them grow their company and their income quickly and protect their profits effectively.

I have seen some cases where a successful entrepreneur ran a company that was 100% legitimate. When the company was just starting the get off the ground he decided to take in partners, these partners were businessmen involved in large-scale business. The partners then cheated the entrepreneur out of…