Real Estate Operations / Open Bank for Merchant Account

[Financelady45]

Hello Guys!

One of my previous clients, a wealthy person, has proposed me two new business venture.
He will likely to finance me and give me power of attorney to conduct the businesses on his name.

REAL ESTATE
1) Incorporation of a LTD in Cyprus in order to buy and sell residential properties. I will basically coordinate people, contact local agents, manage the website, customer service, grown the business, etc. He wants to stay low profile. He proposed me a good salary for this.

Questions:
A.- I think I can get a good salary and great commissions from the sales (he proposed 20%).
Do you think it makes sense on the long term to get also a share of the LTD? If I become a shareholder of the company, do I risk my a*s for anything? I want to maximize the profits but protect my a*s in anyway (bankrupt, legal issues, taxation issues, etc)

BANK / MERCHANT ACCOUNT
2) This guy also run an online business, he asked me if I can open a merchant account company. I am not expert but as far as I know, someone needs to own a bank in order to open a merchant account. I know MONTENEGRO offers a bank for just $5M. What would you do in this situation to get some economical advantages on the long term? I can go there and open the bank but what to do after this?

Also I want to protect my a*s as be professional as consultant as I know this guy made a lot of money on the Internet but I do not know more about his other income.

ANY other idea about any kind of successful business venture I could propose to this guy?

 

[UScorp]

Hello
as a shareholder in a Ltd you have Rights and Obligations here some more information Practical Law US Signon
As you oversee daily business you can act accordingly if there a potential problems coming up ( Money Laundering, criminal stuff)
Bank:
From my point of view setting up an EMI is more favourable than a Bank because of lesser legal requirements and Capital . To apply for an E-Money license in Cyprus you need a good lawyer and approx 70K in legal fees and of course the required capital max 350.000

 

[Financelady45]

Hello
as a shareholder in a Ltd you have Rights and Obligations here some more information Practical Law US Signon
As you oversee daily business you can act accordingly if there a potential problems coming up ( Money Laundering, criminal stuff)
Bank:
From my point of view setting up an EMI is more favourable than a Bank because of lesser legal requirements and Capital . To apply for an E-Money license in Cyprus you need a good lawyer and approx 70K in legal fees and of course the required capital max 350.000

Hello,

Thanks so much for your answer, you really seem to know the point.
I will be operate most of the time remotely, do you suggest me to make a contract with him as external consultant AND get a % share of the company or to be hired as official Director? I know from where they get the money but I want to avoid any future possible issue can arise ( Money Laundering, criminal stuff).
What do you suggest?

In regard to the EMI, apart from Cyprus, where would you open it? Why not directly opening a bank?

Thanks!

 

[UScorp]

Hello,
better you talk to a lawyer with experience in setting up the contracts ,agreements etc . I did my stuff in CY with these guys www.first-office.co , my CY Ltd is now active since 2012 without any trouble. With a CY Ltd you can open accounts almost everywhere in the EU.