Even those who yesterday believed in the prosperous future of the Old World and the world economy as a whole are today the first in line for foreign bank accounts and other offshore products in order to protect their wealth and freedom of movement around the world. It turned out that not only the spring of 2013 will be full of unwanted surprises, but also the spring of 2014 will be no less tense.
Last year, everyone was discussing crisis Cyprus, which had hurt the budget of not just one private entrepreneur and not one international company that kept its assets in Cypriot banks, but very many. But the current situation in Ukraine is like a wave from an atomic explosion that has rounded the entire planet and has affected a lot of jurisdictions more than once.
For the US, Russia’s actions regarding intervention in Ukrainian problems are like a red rag and a reason for regular trials. Of course, you can say that you are very far from politics and it is unlikely that everything that happens will ever touch you. But do not be so naive. Everything in world politics is connected with economic processes, part of which is your earnings and your business operations. If the United States applies any restrictive measures regarding the Russian Federation and its legal entities and individuals, which is unlikely, but if they are taken, not only all Russian entrepreneurs will suffer, but also those who do business with Russia. Of course, China, who understands this, has already stood up for Russia.
Nothing can protect business and accumulated savings, as well as the time, is taken to protect you personally, and all that is connected with you, from real and potential risks, which like mushrooms under a summer rain, daily increase in quantity.
First, I strongly recommend that everyone, if not 100% adhere to the theory of six flags, but at least get acquainted with it for a general understanding of this idea.
If you are a regular reader of Perry Mason, then you already know quite well that the purpose of our blog is not just to provide our readers with offshore services, but also to inform and educate as much as possible about this issue. Hence the idea of today’s article – to tell you about six modern options for protecting your assets.
Many entrepreneurs use offshore companies to minimize the tax burden, which is profitable and sometimes risky, but offshore jurisdictions in addition to companies offer a huge number of equally attractive products that can not only minimize costs but also protect your assets from external sources of risk.
It’s probably worth starting from the very foundations – this is the registration of an offshore company.
In the matter of protecting your assets, the issue of the place of incorporation of an offshore company is one of the most important. The main thing is not easy, anyhow, to register an offshore company, but to choose the most reliable and protected offshore jurisdiction. It should be a country with a good reputation, not have excessive popularity, but at the same time known for international banks and be a jurisdiction with a stable regulatory framework, government and economic situation (for example, Nevis).
As the owner of an offshore company, you can protect all your assets from unnecessary curious noses and ears. For example, owning real estate recorded on an offshore company, it will be much easier to resell the company, rather than go through the entire bureaucratic process for selling real estate, etc.
An offshore company is like an information leakage shell. Only a registered agent in offshore jurisdiction will know about your assets, who is “responsible with the head” for distributing information and no one else.
Speaking of asset protection with the help of a legal form, trusts deserve no less attention.
Trust is actually a panacea for problems in concealing information about your assets. But the question of trust must be approached very seriously since the possibilities and types of trust are very extensive.
The meaning of a trust is that you rewrite all your assets into a trust, which you established. But ownership of the trust and control over it is transferred to the trustee. This is the most elementary method of protection, but even in this case, one should not allow leakage of information about your ownership of this protection mechanism.
The next tool to protect your assets is a foreign bank account.
The more your earnings and the number of accumulated assets, the more relevant to becoming the correct choice of a bank account. Many people prefer to choose offshore bank accounts, which is quite logical. But there are those who wish to keep their assets closer to the geographical concept.
For those who are ready to divert all their assets to offshore, we suggest using our free advice in the selection of an offshore bank account. Based on the preferences and capabilities of our customers, we can quickly and easily guide the issue of selecting an offshore or foreign bank account.
For some, it is enough just to have an account abroad, which is also welcomed in world practice regarding the diversification of funds. Many of our clients who work with Europe willingly open accounts in the Baltic countries. Latvia and Estonia, although not far from Russia and the CIS countries, but already offer European standards and guarantees of banking. And prompt low-cost maintenance, which is important.
Previously, numbered bank accounts were also very popular, which did not reveal information about the account holder, but such opportunities melt before our eyes. Over the past year, the requirements for all world banks from world economies have become so much tougher than it is almost impossible to find a numbered bank account within the framework of international standards on money laundering. Moreover, such accounts are rarely opened to customers from the street.
If you have already decided on an offshore jurisdiction, where to register a company, and they were to open a bank account, then there comes the next important point in the registration process, and then managing the company is using or not using nominal service.
Nominal service can both save and destroy.
But, in short, the use of nominal service depends on whether the register of companies in offshore jurisdiction is open or closed. If the registry is open, then all information about the owner of the company, directors, and secretaries will be available to a third party, which no one needs. Therefore, all over the world, where registries are open (for example, Panama, Cyprus, etc.) they actively use nominal service. The company uses the services of a nominee director and shareholder, and so protects information about the beneficiary of the company. And even if someone decides to “rummage” in the information about your company and its owners, then only nominal persons can be obtained.
No less interesting way is to register an offshore company with bearer shares. But, despite the former popularity of this method of protection, today only the jurisdiction of Marshall Islands really offers such an opportunity. Even the days of bearer shares of Panama companies are already numbered.
The thing is that this is a sufficient, non-transparent way of owning an offshore company and very risky for its owners. The point is that in whose hands the shares of the company, he becomes its owner, submitting only personal information to the registered agent. And of course, banks do not like additional risks and are extremely reluctant to open accounts for such companies. Even if they open it, provided that the bearer shares will be stored in the same bank – in a cell.
And the final way in our list is to purchase a second passport.
The Internet is teeming with the acquisition of second passports, but not many people understand and know about the legality of this document and how to use it. Offshore Pro Group works with the “magnificent six” of second passports, which grant not only freedom of movement, but also an asset and life protection – these are St. Kitts and Nevis passports, the Commonwealth of Dominica, Antigua and Barbuda, Grenada, Cyprus or Malta.
All these passports are legal and allow their holders to enjoy all the privileges of citizens of these jurisdictions. The main factors when choosing the right second passport are the purpose of its use. If you need a mechanism to protect your assets, as well as visa-free visits to many countries of the world, then a Caribbean passport, such as the Federation of Saint Kitts and Nevis or Grenada, is perfect for you. As part of the acquisition of these passports, you will be able to invest in the acquisition of Caribbean real estate, which today is rapidly growing in price and, after 5 years, promises all its owners a decent profit from the sale. An indicator of the attractiveness of these programs is the interest in these passports on the part of the Chinese and Americans, who are able to expect well the potential to arrive both material and physical (second passport).
And for those who dream of Europe, the world offers second passports of Malta and Cyprus. But it is several times more expensive than Caribbean passports. For example, if you pay 400 thousand US dollars for Caribbean passport duties, then in Malta you will have to pay 1 million 150 thousand euros, and in Cyprus all 2.5 million euros, and not US dollars.
Protect your assets only in your hands. And if you do not put this matter in the back box, then in the most difficult times you will be able to get out of the situation with the least losses. We offer you to protect your assets only legal and the most effective methods. Be healthy and efficient, and we will help you achieve all your asset protection goals.