How about a Contractor Owned ManCo?

[wind]

Allegiance? Empire? Colony? Legion?

I'll quit while I'm ahead.

I always wanted to be a guild member.
The guild of malcontent consultants (GMC).

what say thee guild master nodric.

[Sergeant Murphys Cosh]

I always wanted to be a guild member.
The guild of malcontent consultants (GMC).

what say thee guild master nodric.

How about the 'Overseas Legally-Designated Guild for Information Technology Services (OLD GITS)'.

Hey, we could have a dodgy hand-shake like the Masons.

[wind]

Any news on that front ?
Alternatively anybody knows a local (Belgian) office that establishes offshore companies ?

[Brussels Slumdog]

Offshore

Any news on that front ?
Alternatively anybody knows a local (Belgian) office that establishes offshore companies ?

If you are a Belgian non tax resident and non EU then Belgium maybe considered offshore. There are quite a number of private banks operating in Belgium providing what I would define as offshoring. Maybe one of these banks can advice you on setting up your offshore company so you can hide your money in one of their "private Banks"

[nodric]

Any news on that front ?
Alternatively anybody knows a local (Belgian) office that establishes offshore companies ?

News

I am in the process of setting up the required 'collective’ company structure. This is currently being tested by Deloitte to ensure tax compliance across EU jurisdictions.

For now, the sole contractor can establish a Cypriot IBC as I’ve described, and work via that fully legally. If the contractor is at risk of becoming, or is already, a higher rate tax payer, then he/she can appoint other shareholders to spread the dividends to keep everyone in the standard rate bracket.

The issue I discovered with Cyprus is that a dividend distribution must be equal amongst shareholders, or be directly proportionate to the number of shares held. This is very difficult to arrange when there are multiple contractors all responsible for the different levels of income to the company. i.e. You want your share dividend to be equal to what you earned for the company.

There is a way round this, hence why Deloitte is involved.

To ensure the Cyprus IBC is UK tax compliant, it must be a resident IBC in Cyprus. It must have a real presence, and be VAT registered etc. This is covered in my posts in this thread, together with the costs.

In essence , if you use a Cypriot IBC, you’ll pay 10% tax on most, if not all, of your income

If you are not prepared to set all this up yourself, or think it’s too good to be true, then either pay Hector/BTA/Insert relevant tax man here, whatever he asks.

As soon as I have the structure set up and validated by Deloitte I’ll publicise it well, and what that actually means, is I'll be looking for customers for the service, and seeking approval from agency compliancy officers

FYI – I already have one of the big names on board, assuming I managed to tick all the boxes.

Belgian Offshore Formation Companies

If I read this right, you want someone in Belgium to set up the Cypriot IBC for you?

Hmmm… Not going to happen.

You need to go direct to a Cypriot formation company. I can suggest one or two if you PM me.

As for using Belgium banks as an offshore drop box for you funds, as my colleague BSD suggests, may not be the wisest thing to do if you want to avoid the openness between EU authorities, that is unless, you are a non EU citizen, and have no intention of working in the EU.

[wind]

If you are a Belgian non tax resident and non EU then Belgium maybe considered offshore. There are quite a number of private banks operating in Belgium providing what I would define as offshoring. Maybe one of these banks can advice you on setting up your offshore company so you can hide your money in one of their "private Banks"

Thanks Slumdog, Some of the ManCos I was conslting suggested that. at the beginning I didn't feel all to comfortable with that. After I investigated a bit I understood why...


But I didnt know local banks do that

[wind]

I am in the process of setting up the required 'collective’ company structure. This is currently being tested by Deloitte to ensure tax compliance across EU jurisdictions.

FYI – I already have one of the big names on board, assuming I managed to tick all the boxes.

The issue I discovered with Cyprus is that a dividend distribution must be equal amongst shareholders, or be directly proportionate to the number of shares held.

I got the impression that this is the rule not the exception, was I wrong ?


Great information thanks.

[nodric]

I got the impression that this is the rule not the exception, was I wrong ?


Great information thanks.

No it's the rule. I was trying to find an exception

This is why Cyprus is excellent for the individual, or for a group of contractors that trust each other enough (insert scepticism here) to find a way of managing the dividends so that Fred doesn’t take the benefits owed to John etc

i.e. If there are 10 of you, and you all trust each other, you could structure the shares to allow disproportionate distributions inline with the proportionate value you had contributed.

In simple terms, you get out what you put in. This just gets hideously messy when managing dozens, or hundreds of contractors, all on different rates, and all working different numbers of days a month etc.

There is a way however, but it involves a double hop for the funds. More news to follow...

[nodric]

Thanks Slumdog, Some of the ManCos I was conslting suggested that. at the beginning I didn't feel all to comfortable with that. After I investigated a bit I understood why...


But I didnt know local banks do that

Belgian banks have had a Private Banking sector for a long time, and have attracted money from non Belgian residents/citizens. They had a level of bank secrecy similar to the Swiss, and in common with Luxembourg.

However, with our friends that make up the OECD, and more recent bilateral arrangements in the Benelux regions, that secrecy is much less that it once was.

If you are resident, no Private banking for you here, unless you just have millions and want the local banks to suck up to you.

If you are non Resident, or non EU, better options exist, with much greater obscurity than Belgium.

I do have a Private Banking Contact in ING should anyone actually want to go have a chat with them. PM me.

[Brussels Slumdog]

[QUOTE=nodric;1164790]News


The issue I discovered with Cyprus is that a dividend distribution must be equal amongst shareholders, or be directly proportionate to the number of shares held. This is very difficult to arrange when there are multiple contractors all responsible for the different levels of income to the company. i.e. You want your share dividend to be equal to what you earned for the company.

QUOTE]

Why not have an agreed monthly profit that will result in an equal dividend distribution
say €6000
The average daily rate is most likely about €500 day
€4000 in Salary + 6000(less tax ) +Dividends (less tax )