See our French Blog about paradis-fiscaux-levee-de-boucliers-en-suisse-contre-la-menace
The M.O.S. Blog
Barbados intent on protecting international business and offshore sector
March 2, 2009 @ 4:58 pm
This is from the Caribbean360.com site -
“Bridgetown, BARBADOS, February 26, 2009 -
The Government of Barbados has pledged that it “will not sit idly by” and allow any chaos to unfold within that country’s critical international business sector.
This assurance was delivered to members of the Barbados International Business Association (BIBA) by George Hutson, Minister of International Business and International Transport, at the organisation’s monthly luncheon on Tuesday.
He said that not only would the sector be covered under government’s recently crafted fiscal stimulus ‘The Barbados Short and Medium Term Action Plan’, but his own ministry had also put in train its own ‘Short and Medium Term Action Plan for the International Business Sector 2009 - 2011′. The plan aims to tackle the perceived impact the economic downturn would have on the sector while mitigating potential loss and creating avenues to exploit any possible market opportunities over the next two years.
His comments came in the wake of the high-profile collapse of Antigua’s most prominent offshore company - the Stanford Group -, a decline in the number of offshore businesses registering in Barbados in 2008, and a decrease in corporate tax received, which the Central Bank of Barbados said is due to declining profitability in the sector.
Barbados’ international business sector accounts for roughly 60 per cent of corporate tax received by the government, and Hutson noted that estimates put its contribution to the Barbadian economy at 20 per cent of its gross domestic product when spin-offs such as real estate transactions and high-end tourism spend was accounted for.
He also reported that Barbados currently has 10 bilateral investment treaties (BITs) in place, plus 16 double taxation agreements (DTAs), and added that the government was pushing to ratify DTAs with Ghana and Luxembourg and a BIT with the Belgium-Luxembourg Economic Union this year. At the same time, it will push forward with negotiations of DTAs with Italy, Spain and Iceland.
Hutson added that his ministry would also be turning to the secretariat of the Organisation for Economic Cooperation and Development (OEDC) to aggressively pursue opportunities to conclude and amend tax treaties with member states in order to enhance Barbados’ network of competitive tax treaties.
The Minister also promised to amend legislation later this year to implement a new system for the renewal of licenses for international business entities and international societies with restricted liability; review the holding company and shipping corporation legislations; implement revised license application forms to better capture statistical data on the sector; and improve the administrative and operational systems of his ministry to ensure the highest international standards were met. “
Using an Offshore High Risk Merchant Account
March 2, 2009 @ 12:12 am
The ability to accept credit cards is an important factor for many businesses, but particularly those operating on the Internet. However, if a company operates in a high risk market then it’s often not possible for the company to find a standard credit card processor (including processors such as Paypal). In these cases, a possible solution if for the company to consider a “
”. Read on to find out more about how offshore merchant accounts work, as well as their pros and cons.
How Does Offshore Payment Processing Work
Let’s face it – banks tend to be conservative about the types of companies they want to work with. They like to work with companies that are minimal risk and so it’s often difficult to qualify for a merchant account with a standard processor. This is where offshore merchant accounts can be a better fit by allowing companies to get around the requirements of a more conservative processor. Opening a high risk merchant account is relatively straightforward with the proper documentation. Payments can be transferred to an offshore bank or a local bank depending upon the structure of your company.
What is Considered High Risk
There are certain businesses that are usually classified as high risk. Many banks avoid working with these types of businesses due to potential for charge backs or the potential for a negative association. A few examples of high risk businesses are: adult entertainment websites, online casinos, online pharmacies, and even the online sale of tobacco related products. An offshore merchant account can be a good fit for these types of businesses.
What to Consider
These are just a considerations that should be taken into account when searching for a high risk merchant processor:
- Are there any application fees?
- Is there a montly sales minimum?
- Do you need to provide any processing history?
- Is the processor in a jurisdiction that offers favorable tax advantages?
- Is the company a fly by night operation?
Final Note
If you have a high risk business, then an offshore merchant account could be an excellent solution to consider. Just be sure to look carefully at the options available and be sure about the processor, as well as the country they are located in. Also, if you haven’t set up your offshore company yet, then it’s the perfect time to make sure that your merchant account works with your offshore corporation for the best advantages. Remember, the most important factors are to make sure your ability to receive your customer’s payments is not jeopardized and that you save taxes if possible.
Don’t hesitate to contact us at Miami Offshore Services if you have any questions about how a high risk merchant account might work for you.
Which Offshore Corporation Structure Is Best?
February 27, 2009 @ 11:50 am
Offshore corporations can be set up in jurisdictions worldwide for a variety of purposes. While choosing the proper offshore jurisdiction is very important, equally important is choosing the most effective offshore entity for your needs. Are you looking to hold and manage assets, conduct international trading, manufacturing or marketing activities, anonymity, or tax reduction? The following provides a brief overview of the more popular offshore entities that you might utilize to meet your goals including: offshore corporations, offshore limited liability companies (LLCs), and offshore limited partnerships.
Offshore corporations, also known as IBCs or limited companies, are one of the most common types of offshore entities. They can be used for a variety of purposes including investments (equity, commodities, forex), trading, tax reduction, receiving royalties and property investments. They also provide an additional level of protection to the owners of offshore bank accounts because the company, not the individual is listed on the account. One type of offshore company, bearer shares corporation, doesn’t use registered shares where the shareholder owns the certificate in their name, but instead uses bearer shares which means that whoever physically has the shares in their possession is the “owner” of them. While bearer shares might offer a greater level of confidentially, they also offer great risk if they are lost or stolen. In addition, they are often associated with money laundering. If anonymity is a key factor, then a nominee shareholder can be utilized in a jurisdiction that requires public reporting.
Offshore Limited Liability Companies, also known as LLCs) allow you to take advantage of the asset protection strengths of a limited partnership while also drawing upon the protection of the limited liability afforded by the corporation. The shareholders receive asset protection and protection from creditors. Managers do not need to be members which provides an additional level of security for members.
Offshore Limited Partnerships also known as limited liability partnerships allows the possibility to separate ownership and control. In an offshore limited partnership the general partner takes the brunt of any liabilities while the limited partners only have liability for what they have invested in the partnership.
This is not intended to be an exhaustive overview of the structures available for offshore companies. It is important to bear in mind that tax reductions and other benefits will also depend upon the owner’s country of residence as well as the tax structure with, or in which, the offshore entity might conduct its business. If you would like assistance in creating the most effective offshore company for your particular situation then Miami Offshore Services can help you.
Miami Offshore Services expands range of jurisdictions
January 29, 2009 @ 12:23 pm
Miami Offshore Services recently expanded our portfolio of offshore service and company formation jurisdictions to include a wider range of European and low-tax jurisdictions. We now offer additional low-tax offshore jurisdictions of Anguilla, Cayman Islands, Gibraltar, the Isle of Man, Jersey, Liechtenstein, Madeira, Nevis and Seychelles. In addition we also offer company formation in several desirable European locations such as Cyprus, France, Ireland, Luxembourg, Switzerland, and the United Kingdom. Our offshore services include company formation, IBC, offshore bank account, commercial address, mail forwarding, virtual office, and standard and high risk merchant accounts. Situating your personal or business presence in an offshore jurisdiction can offer tax privacy, lowering tax burdens, asset protection, e-commerce flexibility, and the possibility to do high risk businesses such as adult, pharmaceutical, online casino / gambling.
Reasons NOT to use Nominee Bank Services for your U.S. company
December 30, 2008 @ 1:22 pm
If you are a non U.S. resident and are looking to open an offshore U.S. bank account for your Delaware corporation, Florida corporation or Nevada LLC, you need to be aware of the pitfalls of using a nominee banking service. It might seem that this is the only option available to you that can hold you over until you get the United States to open an account in person.
Before you choose to use this option you really need to think carefully. Using a nominee banking service puts you and your company at a great many risks. Let me explain what it is and why you are taking a risk.
Nominee services for your offshore bank account means you are essentially letting someone else control your bank account usually through a Power of Attorney. Although you will most likely show up as the beneficial owner of the account, if the person who is putting their social security number on the account begins to have any problems (and if they are opening up a large number of accounts under one social security number then it can happen) your account could be closed. If your account is closed and you are lucky, then perhaps you will get your funds back. However, if the government decides to seize the funds then you are out of luck until the government gets around to refunding the funds to you the owner. In the meantime, your account is closed and you can’t use it for your business.
So before opening up your U.S. bank account with a nominee bank account, consider instead working with someone who can get your account opened in your name only. We can definitely help you with getting your bank account opened up in your name.
French President Sarkozy on offshore business
December 2, 2008 @ 3:50 pm
Please see our French blog post here
