Belize Forex Brokerage License
Posted by admin in Belize Banking on July 20th, 2010
- Formulation of the Memorandum and Articles of Association, with special provisions to conduct the affairs of brokerage, with the required share capital
- The Directors and Shareholders of the company will need to be available for visits with the Director General for interviews on the matter
- The company will be asked to deposit it’s full capitalization (only $25,000 required) in a local bank account during the course of the application process
- Payment of the full US$500.00 application fee to the IFSC will be required to be paid upon submission of the application and this fee is non-refundable
- Supplication of full due diligence of each director and beneficial owner of the company will also be required
Seychelles – OECD Tax Sharing Treaty Update, part 7 of 7
Posted by admin in OECD Tax Sharing Treaty, asset protection on July 6th, 2010
Continued from St. Lucia – OECD Tax Sharing Treaty Update, part 6 of 7.
Seychelles is an interesting jurisdiction, plus we have banking options in Mauritius as well. Seychelles, in its attempt to offer all things to all people has come out with a whole smorgasbord of competitive options include a new foundation law, a mutual fund law and an alternative to the IBC known as the CSL which is a regulated and lightly taxed corporate vehicle that could benefit from the growing number of double taxation treaties the country has signed with the likes of China, Indonesia etc.
In its attempt to become the financial hub of the Indian Ocean it has concluded more double taxation treaties than any other offshore financial center. Some view this as a negative, while others put a very positive spin on this as Seychelles is not even on the OECD list as you will notice because it had already signed the minimum viewed as necessary to avoid being on the list in the first place. Panama may be cautiously treading in the Seychelles direction pursuing double taxation agreements which can be far more advantageous then simply becoming tax collectors for the bloated welfare states of Europe, America etc.
More information on this can be seen at http://www.chinaeconomicreview.com/cer/2010_02/Two-way_street.html.
For more information on our Seychelles incorporation options go to our Seychelles IBC page or contact us with questions.
St. Lucia – OECD Tax Sharing Treaty Update, part 6 of 7.
Posted by admin in asset protection on June 1st, 2010
Continued from part 5 of 7, St. Vincent – OECD Tax Sharing Treaty Update.
St. Lucia: We have an excellent banking option here with one of the largest banks in the Caribbean region. They offer many more currencies than any other Caribbean bank we know of. However, it is not available for U.S. persons. St. Lucia has signed a few TIA’s with mostly smaller countries as has St. Vincent. They also are a good alternative to St. Vincent for establishing a Private Fund since such a fund in St. Lucia can have up to 100 clients. The normal in most other jurisdictions for this cost effective licensed fund option is 50 and instead of $100,000 being the minimum investment they lowered the bar to $50,000, lower than any other jurisdiction we know of. St. Lucia was a latecomer to become an offshore center but has implemented its own version of the financial and legal ordinance platforms that characterize St. Vincent.
Please contact us if you have any questions about banking in Saint Lucia.
Continued at Seychelles – OECD Tax Sharing Treaty Update, part 7 of 7.
St. Vincent – OECD Tax Sharing Treaty Update, part 5 of 7
Posted by admin in OECD Tax Sharing Treaty, asset protection on May 25th, 2010
Continued from Part 4 of 7 - Hong Kong Company – OECD Tax Sharing Treaty Update
St. Vincent: We continue to offer a St. Vincent bank account opening option. Unfortunately, they are quite slow but there is flexibility if no bank reference letter available. St. Vincent, in common with the other Caribbean nations has signed a number of tax information treaties, with mostly the same countries that others like Nevis and Antigua have. However, despite that there is a lot to recommend about St. Vincent.
We also recommend its licensed private investment fund option for those that want a cost effective venue to establish a regulated Private Fund without having to pay a small fortune in ongoing administration fees as is the case with more well known jurisdictions such as BVI, Caymans and Anguilla. A Private Fund can accept up to 50 investors investing a minimum of $100,000 each and no independent third party administrator is required. An annual audit is required and each investor must be registered with the Registrar. (An investor of course is more often than not an IBC, foundation or trust that most investors will choose to use as investment vehicles rather than their own names).
Our complete fee for the Fund set up is $12,500 and annual fees start at around $6000 per annum. It is a small amount to pay for creating an environment of credibility and safety in the minds of your prospective investors. Contact us to learn more about the other options that Saint Vincent offers.
Continued in part 6 of 7, St. Lucia – OECD Tax Sharing Treaty Update.
Hong Kong Company – OECD Tax Sharing Treaty Update, Part 4 of 7
Posted by admin in Hong Kong Banking, Starting an Offshore Company, Swiss Banking Alternatives, asset protection, offshore asset protection on May 16th, 2010
Continued from part 3 of 7, Belize – OECD Tax Sharing Treaty Update.
Hong Kong: Absolutely the best option out there that we know of for a multi-currency (10 different) corporate account with internet banking with one of the largest banks in the world in one of the world’s premier and largest offshore banking jurisdictions. Their business integrated accounts combine efficient low cost online multi-currency banking with a sophisticated online trading platform for securities in multiple markets and forex. No physical presence and even no bank or reference letters required under this program! Only US$700 is needed for the minimum account opening balance. Bank account opening accomplished within 3 business days and requires the formation of an HK Private Limited Company which can be joined to a Panama foundation and with the use of a nominee director can give you the best of all worlds – anonymity and privacy without having to sacrifice service and pay high fees. One of the most hassle-free bank account opening options we know of unless you are already an HSBC premier customer in another country. Even then you will find it possible only to open a personal account in Hong Kong through your local branch’s international department and expect it to take weeks and probably months.
The simple requirement is to take your account opening paperwork which will be provided to you, along with your passport and utility bill and have your signature and documents witnessed by an HSBC bank officer in any branch anywhere in the world. That’s all there is to it along with the submission of a simple 2 page business plan according to a pre-approved format we will provide you with.
Hong Kong has an incredibly sophisticated financial services sector with over 160 major banks established there, who are liquid and robust. Couple that with fact that China owns Hong Kong and will not be pushed around by the OECD countries means that there will probably never be any tax treaties on the horizon with the rest of the world. Also all deposits in the territory are 100% covered by deposit insurance. Banking secrecy while not enshrined into law like Panama’s and therefore not as robust is still adequate and respected. We can’t recommend it enough which is why we have moved much of our own business banking to the territory. For more information on our Hong Kong incorporation and banking packages go to our Hong Kong Corporation page.
To continue reading, see St. Vincent Company – OECD Tax Sharing Treaty Update, Part 5 of 7.
Belize – OECD Tax Sharing Treaty Update – Part 3 of 7
Posted by admin in Belize Banking on May 11th, 2010
Continued from part 2 of 7 “Panama – OECD Tax Sharing Treaty Update.”
Belize: this country and its banks are still very much open for business. Unfortunately, Belize has just signed a Tax Information Sharing Agreement with the U.K. in common, we might add, with every other Caribbean tax haven. Overall, the common strategy with all the Caribbean havens is to reach the magic number of 12 treaties “mandated by the OECD , with mostly smaller European countries such as the Scandinavian countries, Iceland, Faroe Islands and countries like New Zealand, which will then make it considered a jurisdiction no longer on the “grey list” but on the “white”. What is interesting is that they have all avoided signing agreements with the U.S. and Canada, their biggest client source market by far and the ones most likely to be sending the highest volume of exchange requests.
We now have a bank in Belize that will open accounts in just two business days which includes the incorporation of a Belize IBC, if desired, in the same time frame! Also no bank reference letter required since many banks will not provide these letters. Last three statements will be asked for instead.
Belize also has in our view the best licensing regime for those that want to license an international securities / forex brokerage firm and/or investment consulting / management business.
To continue reading, see Hong Kong Company – OECD Tax Sharing Treaty Update, Part 4 of 7.
Panama – OECD Tax Sharing Treaty Update – Part 2 of 7
Posted by admin in Panama Taxes, Panama banking, Starting an Offshore Company on May 4th, 2010
Continued from part 1 of 7, “OECD Tax Sharing Treaty Update Overview.”
Panama: we have cemented a new banking relationship in Panama that will allow our clients the ability to open bank accounts without having to travel to Panama. The requirements are quite strict compared to many other countries but if you want the best banking privacy likely to remain intact this may be a good option.
It is becoming increasingly hard for foreigners to open bank accounts in Panama, especially without visiting first, because of the Superintendant of Banking’s compliance crack down to make sure that the banks have a rigorous “know your customer” policy in place. In part this is a governmental reaction to the fact that they do not intend to be signing any one sided tax information sharing treaties, so the banks have been told to keep an extra clean house by the government. Panama’s policy is to only sign selective and advantageous double tax sharing agreements with countries where there are mutual business interests and advantages to both sides to do so.
There are going to be no one-sided agreements, which is the problem with the normal Tax Information Sharing agreements. Also, the burden of proof to show that a fiscal crime has taken place is quite exacting. This is designed to prevent the “fishing expeditions” that would otherwise be the end result. Panama and Mexico have signed such a treaty with more in the works with Italy, Belgium and Spain. Expect Panama to do as little as minimally possible and avoid putting anything in place with the U.S. or Canada, while at the same time possibly causing local banks to react by be overly cautious due to heightened compliance and inspections by the Superintendant of Banking’s office. For more information on banking in Panama, see our Offshore Banking in Panama page.
OECD Tax Sharing Treaty Update Overview – Part 1 of 7
Posted by admin in asset protection, offshore asset protection on April 27th, 2010
Most tax havens are signing tax information sharing agreements. Even Belize has finally started to do so. Panama still shows no signs of being willing to, opting instead for double taxation agreements with countries where it is more mutually advantageous to do so. An updated list can be seen on the OECD’s website at http://www.oecd.org/dataoecd/43/59/43775845.pdf.
Of course our advice is to put in place structures that do not raise any compliance/reporting issues so that one does not need to be concerned about any possibility of a future tax treaty. For many, depending on your country of residence, this may need to include not having any exposure either as a beneficial owner, nor a director, shareholder nor other principal /manager of the company and/or foundation. Therefore using an offshore foundation designated as a family or charitable private interest foundation that then owns one or more companies with everything managed by competent third parties is what we have recommended for years. Our Foundation page is helpful for more information on that topic, found here: http://www.offshore-protection.com/ibc-foundation.html. For a completely managed offshore structure see this page: http://www.offshore-protection.com/international-fiduciary-structure.html.
In the following days and weeks, we will be posting our updates on this topic for the following jurisdictions: Panama, Belize, Hong Kong, St. Vincent, St. Lucia, and the Seychelles. If you have questions, please contact us here.
For Part 2 of 7, see Panama – OECD Tax Sharing Treaty Update.
Understanding Panama’s Tax System
Posted by admin in Panama Taxes, Panama banking on September 2nd, 2009
Panama has defined its national strategy to remove the label of “tax haven” that has been hung on it by the Organization for Economic Cooperation and Development (OECD). This is a continuation of its long standing policy, adopted over many years, of insisting that nations recognize its tax system as legitimate and fair – one that if adopted by more countries could cause an explosion in productivity, wealth and ingenuity by its citizens. Witness the incredible success of Hong Kong’s economy over the last thirty years which adopted a similar tax policy.
This more equitable “territorial tax” system is in actuality a system shared in part or in whole by a number of other jurisdictions including Hong Kong, Singapore, Cyprus, Costa Rica, Uruguay and others and contrasts with the U.S tax system that requires all U.S. persons to pay taxes no matter where they live or earn income.
Therefore part of the government’s strategy in their negotiations with the OECD is to re-emphasize that Panama is not a “tax haven.” This is a key distinction, because Panama does tax all income produced within its borders, but it does not tax income earned outside its borders by its residents, whether they be foreigners or nationals.
However, companies with physical offices in Panama earning their income from outside of Panama do have to pay taxes on all funds remitted to or “perfected” in Panama – such as using a Panama bank to process credit card payments. This is an important change to understand in the previous administration’s 2006 overhaul of the tax and social security system.
However, it is perfectly legitimate to set up a foreign subsidiary, such as in Belize to accept all worldwide payments including those made by credit card. This means that with proper tax planning little or no taxes would ever need to be paid in Panama, as one would typically remit only those funds from the offshore subsidiary needed for the running of the Panama company and the paying of salaries etc.
If intending to set up a resident company in Panama to operate from physical offices here, our capable team of attorneys and accountants can navigate you through Panama’s simple yet equitable tax system as well as its labor laws and licensing procedures. We at Sovereign Management and Legal can be contacted here.