What is a Cyprus International Trust?

A Cyprus International Trust is set up under the International Trusts Law of 1969 (and the 1992 revision). According to the terms of the law, neither the individual nor the beneficiary may be residents of Cyprus, nor may the trust include “immovable property” in Cyprus. However, at least one trustee must be a resident of the jurisdiction.

Specifically, a trust is when the trustee (a person or legal entity) agrees to keep assets (the trust fund) for another person (the beneficiary). The terms of this agreement are decided in a document called the trust deed. The trustee must maintain the assets and any income produced by the assets with the beneficiary’s best interests in mind.

Back in medieval times, crusaders were required to leave their estate for long periods of time. During their absences, they appointed a trustee to watch over their land and possessions. This individual treated the assets as his own, but watched over them separately from his own property. A trustee served in the interests of the individual who appointed him.

Through the years, this function of trustee has evolved to meet our modern needs. Used as a method of securing one’s interests, trust can serve a myriad of objectives, from fiscal, family law, property law, and even charitable objectives.

A trust is the perfect vehicle for providing protection for both personal and business assets. Other vehicles, such as a limited liability company, might secure personal assets from business risks. However, the company is not safe from personal liabilities or obligations, particularly one that is under sole ownership. Legally, a company’s assets or shares can be taken to settle legal issues or debts. But this is not true with a trust.

Since the company shares and assets are held by a trust, any personal debts cannot affect them. They are safe and secure from private matters.

Investors use trusts for a variety of things, including estate planning, bankruptcy protection, and tax planning. Trusts are an ideal vehicle for maintaining complete confidentiality.

For more information about offshore business formation please leave a comment and someone will get back to you shortly.

http://www.totalservecy.com/index.php?option=com_content&view=article&id=305:what-is-a-cyprus-international-trust&catid=25:the-project&Itemid=29

http://www.alexandrougroup.com/en/offshore-trust-foundation.html

Bank Secrecy Laws and Offshore Business Formation

One of the chief reasons for forming an offshore business is privacy and protection. Most jurisdictions offer confidentiality for investors, shareholders, directors, and officers of their offshore companies.

Individuals who wish to protect their assets from predatory litigation are wise to move their assets into a company that is located in an offshore financial center. These tax havens protect individuals from unauthorized access to financial records along with protecting the names and contact information for those involved with the business.

Bank employees may not legally divulge information about a client’s account without a court order. Most jurisdictions are serious about bank secrecy and employees who break the financial privacy laws are faced with huge fines as well as imprisonment.

Offshore financial centers are adamant about backing bank secrecy laws because doing so protects not only their clients, but their economy. If a jurisdiction was not tough on bank secrecy laws, than they would soon find investors choosing other jurisdictions for their offshore business.

Even if a court order is obtained, in most cases, the individual can only be tried if the crime he is accused of is against the law in his bank’s jurisdiction.

Because bank secrecy laws are so strict, banks have become much more picky about which clients they accept, particularly when it comes to offshore companies. Why? The fear and suspicion around money laundering and offshore businesses has exploded in the minds of individuals who may not be completely educated on the topic.

Bankers follow guidelines, procedures, and “suspicious activity indicators” in order to ensure that their clients are not criminals. But what is considered unusual account activity?

In 1995, Former U.S. Secretary of the Treasury Robert Rubin pointed out that the acts of money laundering are “often not only legal but commonplace.” He included in those activities the act of opening a bank account, wiring funds, and international trade.

So keeping your money and what you do with it private is not a crime. Opening your account for your offshore business is perfectly legal. However, because of the paranoia surrounding money laundering, opening a bank account has become a difficult procedure.

Resources:

http://www.offshoreincorporation101.com/bank-secrecy.html

http://www.offshore-fox.com/offshore-corporations/offshore_corporations_0303.html

http://www.offshore-fox.com/offshore-corporations/offshore_corporations_030302.html

Belize for Your Offshore Business

Belize, the northernmost country in Central America, has a sparse population of only 333,200 people. It borders Mexico and the Caribbean and unlike its neighboring nations, it is the only country in Central America with a past steeped in British history. However, the people of Belize still have a heritage that is both Caribbean and that of Latin America.

Investors choose Belize for the jurisdiction of offshore business because of its lack of paperwork and unnecessary regulations as well as its ease of incorporation. The nation has high-quality telephone and Internet services, but they do not come cheap. One major downfall is the lack of administration and support professionals within the country; however, there is a recent steady rise in qualified individuals in the jurisdiction.

International Business Companies (or IBCs) enjoy the tax neutral status as well as the double taxation treaties the country has with Denmark, Sweden, the UK and other CARICOM (or Caribbean Community) countries. Offshore IBCs are exempt from the country’s corporate, business, and withholding taxes. Belize does not have a capital gains or an estate tax, nor does it impose transfer taxes on gifts or upon one’s death.

While the jurisdiction offers a wide range of vehicles for offshore business – including private companies, limited liability companies, limited liability partnerships, public investment companies, limited duration companies, international business companies, and mutual funds – a large majority of offshore businesses choose the IBC option.

Belize IBCs offer great benefits for investors. Companies have no minimum requirements for capital, and larger companies with greater capital are not subjected to government fees. Since Belize follows the International Business Company Act of 1990, there are few requirements on shareholders or officers. Offshore companies must have at least one member and one director, but they do not have residency requirements. The names and contact information of individuals involved in the IBC remain confidential. Additionally, there is no annual reporting or meeting requirements.

IBCs within this jurisdiction are not permitted to conduct business with residents of Belize, nor are they permitted to own real estate; conduct banking, trust, or insurance business within the country.

Resources:

http://en.wikipedia.org/wiki/Belize

http://www.icstrust.com/en/jurisdictions-belize.html

Seychelles for Your Offshore Business

The Republic of Seychelles is a country that consists of 115 islands located east of Africa in the Indian Ocean. It is a democratic republic that is part of the British Commonwealth. Seychelles has a stable political system and a prosperous economy based on tourism, fishing, and offshore finances.

Seychelles is known for its exceptional legislation for developing the country as an offshore tax haven. It provides two vehicles for investors, including Special License Companies, which pay a low tax, and International Business Company (or IBC), which is tax-free.

Seychelles is a highly competitive jurisdiction for offshore business formation, particularly for IBCs, which have a tax-free status. Seychelles IBCs can be quickly incorporated, do not require any reporting or paperwork, and there is no need to file annual returns. Additionally, the maintenance fees are remarkably low with an annual license fee of approximately $100.

Seychelles has strict requirements for privacy. There are no regulations for record-keeping of the names of directors, officers, or shareholders. Plus, Seychelles does not hold any information-sharing agreements with any other countries.

A Special License Company (or CSL) is a relatively new vehicle for offshore businesses. This domestic company was established under the Companies (Special Licenses) Act of 2003. While not completely tax-free, the CSL is a low-tax company required to pay 1.5% to Seychelles on all income worldwide.

Why choose a vehicle that requires your offshore company to pay taxes when a tax-free alternative is available? The answer is quite simple. The advantage of the Seychelles CSL is that it bypasses foreign blacklisting because it is taxed. Since a CSL is taxed in this jurisdiction, it is less likely to be scrutinized. Seychelles is also quickly accruing a Double Taxation Agreements with other countries, allowing your company to avoid taxation outside of your jurisdiction.

Resources:

http://www.britishvirginislands-ibc-registration.com/Seychelles-Offshore-Companies.html

http://en.wikipedia.org/wiki/Seychelles

Offshore Company Formation Types

One of the biggest decisions regarding your offshore company formation is which vehicle you choose for your business. Offshore corporations take on many forms, and you should be informed on all types before choosing which one will best suit your needs.

Offshore company formation types include the following:

IBC – International Business Company

LLC – Limited Liability Company

CORP –Corporation

LTD – Limited (as in Private Limited Company)

PLC – Public Limited Company

LLP – Limited Liability Partnership

Additional formation types include S.A., AG, GMBH, BV, SL, SARL and special purpose vehicles in many different jurisdictions.

The most popular choices for offshore companies are the IBC and LLC’s. The choice often goes hand-in-hand with the chosen jurisdiction. LLC’s that register in an offshore financial center receive complete tax-free advantages that are not available for LLC’s located within the United States.

Both IBCs and LLC’s are limited liability companies. An IBC is restricted from conducting business in its jurisdiction; however, LLC’s are often not under those same restrictions.

Both IBCs and LLC’s are not taxed on income earned outside of the jurisdiction and are exempt from local taxes. They offer complete privacy and allow owners the confidentiality they desire. They are easy to form and have very little paperwork or filing requirements.

IBCs are popular in the Bahamas, Belize, the British Virgin Islands, Panama, and Seychelles. They are most often formed by individuals wishing to hold offshore investments and international real estate.

Limited Liability Companies, on the other hand, are more common in Nevis and United States. They are quite similar to IBC’s, but are considered to be somewhere between a limited corporation and a limited partnership. Like corporations, LLC members are protected against debts or other obligations. However, income and expenses are handled directly by individual members, similar to a partnership.

The structure serves a purpose. It separates the owners from the company from the business. Each area of the business is divided, allowing asset protection similar to a grantor trust, but for smaller amounts of money. Unlike grantor trusts, foreign LLC’s are not expensive to maintain. Additionally, LLC’s have lower tax rates than IBCs and profits from assets are put onto the owner’s U.S. tax return.

http://www.sterlingoffshore.com/about-offshore/offshore-company/formation-types.html

http://en.wikipedia.org/wiki/International_business_company

http://www.freedomoffshore.com/offshorelimitedliabilitycompany.html

Offshore Company Formation Mistakes

Choosing to form an offshore company is not a decision that should be made without properly researching your options. To ensure that you do not make mistakes that you regret, it is best to consider some of the following points.

Fully research each jurisdiction for offshore companies. The main jurisdictions include Belize, the British Virgin Islands, Cyprus, Guernsey, Hong Kong, Luxembourg, Mauritius, Panama, and Seychelles. While many offer similar benefits, there are reasons for choosing one jurisdiction over another. Be sure to discuss your options fully with your company formation agent.

Do not form your company in your home country. A distinct benefit of offshore company formation is the confidentiality that comes with it. Forming your company within your own jurisdiction will leave a paper trail to your name, enabling private investigators, attorneys, or others to locate your assets.

Determine the type of company that would best suit your needs. There is a wide array of company vehicles, from Limited Liability Companies to Corporations to International Business Companies and more. Again, each has its own benefits. Know what your goals are so that you can determine which company vehicle would help you reach those goals. Are you looking to raise capital? Are you trading stocks? Are you planning on being a lender? Each option may require a different vehicle. Know your options.

Be sure that you really do need an offshore company for your goals. If you are not that concerned about privacy and you are not working in large dollar amounts, it may be a bad idea to form an offshore company. While offshore companies are usually tax-free, there are yearly costs associated with them in order to keep the company in good standing. In some cases, it is more cost-efficient to use your own name or perhaps a second passport name for your financial transactions.

Another important element to consider when forming an offshore company is which company formation agent to use. There are many companies clamoring to get your business, so researching the best company is essential to your success.

The company you choose should charge comparable rates to others offering the same services. They should respect your privacy, be available to answer your questions, and work with you to help you make the best choices for your needs.

http://www.offshoretactics.com/articles/KeyMistakesWhenBuyingAnOffshoreCompany

What is an IBC?

An International Business Company or Corporation (also known as an IBC) is just one type of offshore company. IBCs are usually formed by investors or business people in a country outside their own country of residence. They are typically a corporation or Limited Liability Company (LLC).

People who create an IBC in a foreign country will then open a bank account in the company’s name. The international company will receive income as it engages in its business operations.

The United States, and other major business locations, has become known as a high-tax jurisdiction with disproportionate probability of lawsuits. Therefore, IBCs are formed in jurisdictions such as Antigua, Anguilla, the British Virgin Islands, the Bahamas, Belize, Gibraltar, Nevis, and Seychelles.

The Internet has caused the creation of many companies that have no brick-and-mortar storefronts, but are essentially digital organizations. Location has become less important in the scheme of things when creating a business. In many cases, business transactions can be performed via email, fax, and through websites. Since a company can be successful regardless of its location – whether it is in China or Gibraltar – many investors are considering the benefits of an offshore company.

Typically, IBCs are permitted to engage in a variety of different types of businesses, from futures trading, financing, and investment management. They are exempt from local taxation and duties; however, they must still pay annual fees, such as agent’s fee and registration taxes. They may not perform business within the territory in which they are formed.

One of the main benefits is the confidentiality of the company owner of IBCs. They may have a local registered agent, but all requirements for local directors or officers have been revoked. Additionally, IBCs do not need to prove actions are for the interest of the company and they can issue shares in both registered and bearer formats.

http://en.wikipedia.org/wiki/International_business_company

http://www.biba.bb/pageselect.cfm?page=16

http://www.offshorecorporation.com/international-business/

Offshore Companies & Trusts

Every prudent and visionary investor should have a game plan on how to build up an offshore nest egg to ensure their assets are not only protected but are also primed for unfettered growth in complete privacy. It is therefore important to not only understand how the “offshore world” works but it is also vital to recognize and capitalize on the corresponding advantages tied to it.

There have been a lot of talks recently about the benefits of “offshore” companies and trusts for small business owners and investors. It is essential however that we filter the information we are being fed to know the part that represents correct or factual information. One of the major myths out there is that it is expensive and not viable for the average person. This is simply not true as the cost of establishment is about $2,000 to $3,000 only. Another myth out there is that it is illegal to setup a company or trust in a jurisdiction that is considered a “tax haven”. Again, this is not true. As a matter of fact, there are over 50 so-called “tax havens” around the world today and this number is set to grow further as competition for globalized financial services heats up among nations. These jurisdictions or “tax havens” have laws and policies which tend to be far more liberal and protective of you than possibly your own government. While this may be true, you still have to abide by the laws of these jurisdictions. In reality, legal problems will only arise if you have an offshore structure that tends to violate laws in the country where you are a tax payer or resident.

Many people look to an offshore company or trust purely as an investment vehicle but going offshore offers so much more than this so here is a closer look on how one can truly benefit from setting up an offshore company or trust.

Taxation – A properly structured offshore company can help a business legally realize huge tax savings and in some cases resulting to zero tax liability (legally). Some countries levy inheritance taxes but with a properly structured offshore company, this threat to your heirs’ finances can be eliminated.
Investment Opportunities – One can gain access to investments that one would otherwise not have access to. An offshore company in the right jurisdiction will be allowed access to just about any investment it is interested in.

Business – An offshore company can be utilized for a wide variety of uses that will bring any business substantial benefits. An offshore company strategy can benefit businesses such as importing, exporting, consulting, e-commerce, manufacturing, professional services and shipping.
Asset Protection – It facilitates an additional layer of protection for you and your assets against claims like professional negligence claims, product liability claims or nuisance claims by creditors, governments, litigants, and other people or organizations with malicious intent keen on inflicting the most damage to your finances.

Privacy & Confidentiality – Establishing an offshore company or trust is an end goal in itself by businesses or people seeking privacy for their assets or finances. If an offshore entity has been set up correctly, it will make it virtually impossible for any information seeker to obtain information about you and about what you are doing with your money. This is due to data privacy/secrecy laws in place in most of the countries or jurisdictions hosting offshore entities.

The above highlighted reasons may still not convince you about the advantages of an offshore company or trust but if you look at some of the trends today, in particular divorce rates and the increased efforts of your government to tax you to the teeth, you will realize that an offshore option can save you from financial distress. Losing out a huge percentage of your assets is never going to be pleasant so do not allow unforeseen circumstances to dictate your financial future.

On the contrary, if you have decided that an offshore company or trust suits you and your business needs, don’t just jump the gun and go for anything that comes your way. Please be reminded that they are not all the same. There are good ones as well as there are bad ones and you really need to do your homework as you need to recognize that it takes time to set up a structure offshore and to get to know how to use it. Failing to conduct due diligence may result in an undesirable situation where you will be held guilty for “fraudulent conversion” or tax evasion. Remember that by planning ahead and by learning more about an offshore model, risks can be mitigated and the likelihood of any unwanted surprises can be avoided.

Nobody can really forecast what the future will bring however there are certain things that we can reasonably predict with a degree of certainty, and that is, our privacy and freedom will always be at risk of being compromised by our elected governments. Several laws aimed at restricting, controlling and intimidating us have been enacted already. To combat these practices, we can only turn to our wealth. Wealth affords you the freedom to come and go as you please – to do what you want. Governments know this and this is why they exert their power and influence in an attempt to control your wealth; to have control over you! The offshore company or trust disrupts these attempts by governments to undermine you. The offshore model “short circuits” the system and allows you to be in control of your wealth giving you that opportunity to “opt out”.

But then again, you may simply want to spend money on yourself overseas without anybody back home knowing about it or you just want to run an “offshore business” to benefit from the tax breaks that come with it or you simply want to take advantage of better returns for your investment (better than the returns in your home country). Whatever your reason maybe, you have to keep in mind that when an investment compounds its return without the burden of tax, it will take you half the time to reach your financial goals. This could get you retired ten or fifteen years earlier than expected. Think about the possibilities!

Benefits of an Offshore Business Model

Every prudent and visionary investor should have a game plan on how to build up an offshore nest egg to ensure their assets are not only protected but are also primed for unfettered growth in complete privacy. It is therefore important to not only understand how the “offshore world” works but it is also vital to recognize and capitalize on the corresponding advantages tied to it.

Offshore Companies & Trusts and How to Use Them

There have been a lot of talks recently about the benefits of “offshore” companies and trusts for small business owners and investors. It is essential however that we filter the information we are being fed to know the part that represents correct or factual information. One of the major myths out there is that it is expensive and not viable for the average person. This is simply not true as the cost of establishment is about $2,000 to $3,000 only. Another myth out there is that it is illegal to setup a company or trust in a jurisdiction that is considered a “tax haven”. Again, this is not true. As a matter of fact, there are over 50 so-called “tax havens” around the world today and this number is set to grow further as competition for globalized financial services heats up among nations. These jurisdictions or “tax havens” have laws and policies which tend to be far more liberal and protective of you than possibly your own government. While this may be true, you still have to abide by the laws of these jurisdictions. In reality, legal problems will only arise if you have an offshore structure that tends to violate laws in the country where you are a tax payer or resident.

Many people look to an offshore company or trust purely as an investment vehicle but going offshore offers so much more than this so here is a closer look on how one can truly benefit from setting up an offshore company or trust.

Taxation - A properly structured offshore company can help a business legally realize huge tax savings and in some cases resulting to zero tax liability (legally). Some countries levy inheritance taxes but with a properly structured offshore company, this threat to your heirs’ finances can be eliminated.

Investment Opportunities – One can gain access to investments that one would otherwise not have access to. An offshore company in the right jurisdiction will be allowed access to just about any investment it is interested in.

Business – An offshore company can be utilized for a wide variety of uses that will bring any business substantial benefits. An offshore company strategy can benefit businesses such as importing, exporting, consulting, e-commerce, manufacturing, professional services and shipping.

Asset Protection – It facilitates an additional layer of protection for you and your assets against claims like professional negligence claims, product liability claims or nuisance claims by creditors, governments, litigants, and other people or organizations with malicious intent keen on inflicting the most damage to your finances.

Privacy & Confidentiality – Establishing an offshore company or trust is an end goal in itself by businesses or people seeking privacy for their assets or finances. If an offshore entity has been set up correctly, it will make it virtually impossible for any information seeker to obtain information about you and about what you are doing with your money. This is due to data privacy/secrecy laws in place in most of the countries or jurisdictions hosting offshore entities.

The above highlighted reasons may still not convince you about the advantages of an offshore company or trust but if you look at some of the trends today, in particular divorce rates and the increased efforts of your government to tax you to the teeth, you will realize that an offshore option can save you from financial distress. Losing out a huge percentage of your assets is never going to be pleasant so do not allow unforeseen circumstances to dictate your financial future.

On the contrary, if you have decided that an offshore company or trust suits you and your business needs, don’t just jump the gun and go for anything that comes your way. Please be reminded that they are not all the same. There are good ones as well as there are bad ones and you really need to do your homework as you need to recognize that it takes time to set up a structure offshore and to get to know how to use it. Failing to conduct due diligence may result in an undesirable situation where you will be held guilty for “fraudulent conversion” or tax evasion. Remember that by planning ahead and by learning more about an offshore model, risks can be mitigated and the likelihood of any unwanted surprises can be avoided.

Nobody can really forecast what the future will bring however there are certain things that we can reasonably predict with a degree of certainty, and that is, our privacy and freedom will always be at risk of being compromised by our elected governments. Several laws aimed at restricting, controlling and intimidating us have been enacted already. To combat these practices, we can only turn to our wealth. Wealth affords you the freedom to come and go as you please – to do what you want. Governments know this and this is why they exert their power and influence in an attempt to control your wealth; to have control over you! The offshore company or trust disrupts these attempts by governments to undermine you. The offshore model “short circuits” the system and allows you to be in control of your wealth giving you that opportunity to “opt out”.

But then again, you may simply want to spend money on yourself overseas without anybody back home knowing about it or you just want to run an “offshore business” to benefit from the tax breaks that come with it or you simply want to take advantage of better returns for your investment (better than the returns in your home country). Whatever your reason maybe, you have to keep in mind that when an investment compounds its return without the burden of tax, it will take you half the time to reach your financial goals. This could get you retired ten or fifteen years earlier than expected. Think about the possibilities!

About Offshore Asset Protection

Asset protection via offshore instruments is no longer exclusive to high net worth individuals who have under their employ highly paid financial advisors. With the globalization of financial markets and with the adoption of the internet as an effective communication and business tool, just about anyone can “go offshore” nowadays. There are plenty of firms out there who can provide professional advice on how to best utilize the most popular and widely available tools of offshore asset protection. These tools can now be used by online business people and internet marketers alike to protect and grow their business. Below are some of the more prominent offshore asset protection tools in use today.

1. Offshore Trust

A trust is simply a legally binding agreement between a grantor and a trustee. The grantor “grants” control over specified properties whether real, tangible or intangible to the trustee, who will be responsible for them. Beneficiaries are identified in the trust and these are the individuals who will eventually benefit from the assets being put in trust. Beneficiaries will have access to the assets in trust upon the death of the grantor or by receiving profits generated from the assets listed in trust.

An offshore trust is simply a trust formed legally in an offshore jurisdiction. It aims to put some distance between the grantor and his hard earned assets. Moving a trust offshore helps facilitate that additional layer of protection against any claims that may be brought forward against the assets of the grantor. By considering this form of asset protection, online business owners need not worry anymore against lawsuits that aim to encroach on their rights to their assets.

2. Offshore Incorporation

Internet marketers who opt for this asset protection method will have their online information safeguarded, their online income subjected to lower taxation (legally) and their assets protected against legal claims or frivolous litigations. With proper planning and execution, an offshore corporation is far more convenient and cheaper to set up than forming a corporation in one’s own borders. Online business people should wisely choose a legitimate firm that specializes in offshore incorporation that can subsequently address any questions they may have related to incorporating offshore.

3) Offshore Bank Accounts

Offshore bank accounts can also help safeguard the internet marketer’s wealth against lawsuits and privacy invasion. Most firms that offer offshore incorporation services can also help online business people set up offshore bank accounts. In choosing a jurisdiction, it will be wise for the internet marketer to go for a country where information privacy laws are respected and enforced. It is also wise to maintain funds in non-US currencies as such bank accounts often come with international debit cards that can be used to access funds from ATMs around the world.

4) Offshore Merchant Accounts

Businesses that generate income online will enjoy the advantage of having all their credit card transactions handled efficiently through offshore merchant accounts. This option eliminates the disadvantages and difficulties of procuring domestic merchant accounts which in most cases are biased against high risk online services such as adult and online gambling websites. Offshore merchant accounts also address online privacy issues similar to offshore bank accounts.

5) Offshore Webhosting

Often considered a haven for spammers and hackers, offshore webhosting offers legitimate internet marketers a medium for them to secure their online information against privacy invasion brought about by the passing of the Patriot Act. As this is the case, offshore webhosting deserves a better reputation and should not be dismissed outright. While it is true that there are a number of firms that cater to questionable online services there are also many reputable, secure, and well-staff offshore operations that provide reliable and cost effective services to highly commercialized online businesses. All it takes is for the serious internet marketer to do his homework in shopping around for best offshore webhosting solution that would suit his business requirements. It may take time yes, but it will be time well spent.