BVI company as a trust?

[JackieTsan]

Hello to everyone. I'd like to explore the opportunity (a friend of mine just did it and suggested to me) to move savings / investments etc under a company instead of my personal name. He suggested (he actually just did it) to open a BVI company (i think IBC?) and his bank moved all his assets to the company name account (important : as long as he is 100% director & shareholder of the new company).

Do you find it a good idea? are there any negative / risks (besides the cost of the company). From discussions, I understood that if he wants to get the money back to his name it will be a big process as he has to close the company and move back with some processes. Also, all this has 0% tax in BVI, correct?

He doesn't do it (neither I might do) in order to save any tax etc. as he is living in a 0% county in Middle East and I also live in specific regions where you are happy totally legally (as Nomad Capitalist says).... so, it's not any reason of "saving" taxes or something not legal.

But will it offer something possitive to do it ? Can also be used as will easier?

Thank you all

 

[drysponge]

Do you find it a good idea?

to what end?
is coffee good for you? if you are sleepy yes, unless its bedtime then no. "good" is subjective

all this has 0% tax in BVI, correct

subject to cfc rules, sure. but whats that got to do with anything if you're not trying to save tax.
BVI also started requiring annual filings from companies & requiring copies of FATCA & CRS reports this year

it sounds like you dont really have a reason to do this, and therefore shouldn't, what does BVI company as a trust even mean? why not a bvi trust as a trust?

 

[Sols]

Why? What's the point?

 

[JackieTsan]

Hi @Sols thank's for answering. That's what I am asking. Is there any point to do so? Safety? Will (if I die can just let the company to the people I want?), safety from other things?
Thank you!

 

[Sols]

Is there any point to do so?

There can be dozens/hundreds/thousands of reasons to do something like this. Every person's circumstances are unique.

If you don't have a reason, don't do it.

Safety?

Safety from what?

 

[JackieTsan]

Thank you again for answering! Safety from upcoming citizen based taxations, wealth taxes in the future, death, I can't imagine until it comes...
As a proactive proper movement. For example in Middle East, in case of death it's very hard for the family to get the money. If it's under a company you can only have a will in BVI and problems solved. But that's not my primary thought at the moment. That's why I say if it's a proper / good tactic or useless.
Thanks again!

 

[Davis123]

Thank you again for answering! Safety from upcoming citizen based taxations, wealth taxes in the future, death, I can't imagine until it comes...
As a proactive proper movement. For example in Middle East, in case of death it's very hard for the family to get the money. If it's under a company you can only have a will in BVI and problems solved. But that's not my primary thought at the moment. That's why I say if it's a proper / good tactic or useless.
Thanks again!

How does that work in Seychelles ? Is it possible to get an IBC plus bank account to be willed to your wife and children in case of death ? Don’t want her as a partner now.

 

[cuno]

Thank you again for answering! Safety from upcoming citizen based taxations, wealth taxes in the future, death, I can't imagine until it comes...
As a proactive proper movement. For example in Middle East, in case of death it's very hard for the family to get the money. If it's under a company you can only have a will in BVI and problems solved. But that's not my primary thought at the moment. That's why I say if it's a proper / good tactic or useless.
Thanks again!

You need to narrow down your reasons significantly. You’re covering everything from death to taxes! Let it be said, as long as you live or die in an EU country, there’s really no type of company or trust that will protect you from the complex tax authorities. In the case of death, a will can take care of that. However, I do see a point in setting up a company or trust somewhere to avoid expensive legal fees during estate settlement in case of death and, above all, to prevent unequal distribution or unnecessary delays.

 

[redeye]

How does that work in Seychelles ? Is it possible to get an IBC plus bank account to be willed to your wife and children in case of death ? Don’t want her as a partner now.

Let's say it is possible to create the type of setup you describe and inquire about. I think you should consider your children and your spouse in the event they inherit such a Seychelles setup from you. This could cause significant issues with the tax authorities, and in the worst case, the tax authorities might claim that all the funds are illegal and seize whatever assets the company owns.

 

[JackieTsan]

Really?? How could this be possible? And why they can see it like this as if I die my family will inherit the company not the actual amount. So, how can anyone knows what the company owns if I let the company on the will?
And in worst case I can have together with my will, the transfers from my name to the company which will make clear was owned funds. Following that my income is totally legal, clear etc so there will not be a problem at all (I suppose).
And let’s take the other case that I die and my family take my amounts direct from the banks; why the tax people can’t consider the same?
Thank you

 

[cuno]

The problem for you or your family/heirs is that when the tax authorities see some dubious Seychelles company, perhaps with a Wise or similar account, they may start digging into things. That alone can be a very daunting experience for the heirs!

If you want to take action, I would set up a trust, perhaps in the country where you live, or something similar, provided all the funds are from a legitimate source (SoF), taxed, and fully compliant! Then, through an agreement with the trust, have the funds channeled to your family in the event of your death.

Alternatively, check out the Mentor Group, there’s genuinely some valuable information there that can serve as building blocks for a different setup.

 

[Davis123]

Let's say it is possible to create the type of setup you describe and inquire about. I think you should consider your children and your spouse in the event they inherit such a Seychelles setup from you. This could cause significant issues with the tax authorities, and in the worst case, the tax authorities might claim that all the funds are illegal and seize whatever assets the company owns.

Why would it be illegal automatically? If you are setting up legally? Living in a territorial tax free jurisdiction like Malaysia for instance? It all depends on your residency and country of citizenship.

 

[Davis123]

Hello to everyone. I'd like to explore the opportunity (a friend of mine just did it and suggested to me) to move savings / investments etc under a company instead of my personal name. He suggested (he actually just did it) to open a BVI company (i think IBC?) and his bank moved all his assets to the company name account (important : as long as he is 100% director & shareholder of the new company).

Do you find it a good idea? are there any negative / risks (besides the cost of the company). From discussions, I understood that if he wants to get the money back to his name it will be a big process as he has to close the company and move back with some processes. Also, all this has 0% tax in BVI, correct?

He doesn't do it (neither I might do) in order to save any tax etc. as he is living in a 0% county in Middle East and I also live in specific regions where you are happy totally legally (as Nomad Capitalist says).... so, it's not any reason of "saving" taxes or something not legal.

But will it offer something possitive to do it ? Can also be used as will easier?

Thank you all

If you are living in ME or any territorial tax countries like Malaysia as shown by Nomad Capitalist then I am sure you shouldn't have any problems setting up a BVI company as long as you have remained tax compliant with the country of your citizenship too (depending on your country of course )

 

[JackieTsan]

Why would it be illegal automatically? If you are setting up legally? Living in a territorial tax free jurisdiction like Malaysia for instance? It all depends on your residency and country of citizenship.

I am OK at the moment but looking to move to Malaysia soon. I checked about Malaysia and after very deep research with high experts there, they told me (not sure if it's true) that Malaysia will tax any income if it's not taxed in any other country. So, having - legally - a 0% tax income, doesn't work for Malaysia. And other issues & concerns that come second after this. So, I believe Malaysia is not the answer. Unless - hopefully - they are wrong.
We are talking about NOT remitting the international income into Malaysia at any case.
Also, I seen that PM of Malaysia announced last week 10 more years of tax exemption, which is very interesting (if the issue with the non taxed income does not exist).