The cryptocurrency market is barely a decade old yet it has presented one of the most interesting ecosystems and continues to grow rapidly in the recent years. It creates new opportunities to run a location independent business, tie it up to your own philosophy, run it with minimum personal identification, all while using existing tax legislations worldwide. Therefore more and more entrepreneurs are beginning to use it as a form of business. Some people claim that it is the future of money and entrepreneurship.
Despite of the obvious benefits such a form of business has, cryptocurrencies are not without their challenges. One of the main ones is a confusion in many countries regarding how cryptocurrency should be categorized and taxed. Governmental bodies of certain regions of the world like China, US, UK and some countries in EU are starting to impose financial regulation on cryptocurrency transactions, reducing the benefits of the business and making its future uncertain. Thus, to avoid all unnecessary stress in setting up the business and potential financial losses in taxes company owners are more and more considering the benefits of incorporating offshore.
Benefits of incorporating offshore for cryptocurrency business
1. Offshore company formation is a straightforward process with minimum bureaucracy
The Articles and Memorandum of Association are drafted, which represent the details and by-laws of the company and are filed by an offshore company agent; together with the initial company registration documents, it is sent off to the appropriate Register. Once these documents are approved, a certificate of incorporation is issued signifying the formation of the new company.
In certain jurisdictions depending on a type of your cryptocurrency business there is need to obtain a licence. However, the process and guidelines are also straightforward and relatively easy compared to other countries. Furthermore, there may be additional requirements of the newly formed company post-incorporation are dependent upon your needs and wishes. Contact us to find out more about your particular situation.
2. Access to financial institutions that open accounts for companies which conducts business with trading cryptocurrency
Setting up a company for your cryptocurrency business will prove less challenging than finding a bank that will allow you to tie an account to a company that is involved with cryptocurrencies. Thus instead of trying to pursue your current bank to let you participate in crypto activities it is much easier to use appropriate financial institutions which already engage with companies involved in cryptocurrencies.
3. Crypto-offshore legislations are the new tax havens
While some countries are still debating how to categorize and tax cryptocurrency, Several offshore jurisdictions have already categorize transaction with cryptocurrencies as unrestricted and have no special regulations allowing all transactions with cryptocurrencies being absolutely legal with no tax duties.
Declaimer: This information has an informative purpose only and can not be considered as legal advice or call to action.
The International Corporate Agents Group of Companies can provide you with the following cryptocurrency related services*:
- Crypto-compliant company formations
- Regulatory-avoiding and tax-efficient cross-border structuring
- Digital asset and financial services licensing
- Blockchain and ICO advisory services
- Cross-border tax structuring
- Crypto transaction support services
- Legal opinions and professional statements
*Please note that all services are tailor made to the need of a client and therefore we highly recommend to contact us regarding your particular situation. We would be happy to offer the best solution for you.