Cheap and reputable offshore company – Never stress, bureaucracy and taxes again

Today I will show you where you can incorporate without stress, bureaucracy and taxes.

In the media they always draw the picture that offshore companies are only existing for money laundering and tax fraud. Nasty corporations hide on small islands where they conduct their semi-legal deals in the protection of a tax haven. But is this really true?

Leaving aside the fact that the term tax haven always implies the existence of a tax hell – *cough* Germany *cough* – for entrepreneurs it is only logical with regard to their customers to pay as less tax as possible. It is just very rational to pick a company’s headquarter also from fiscal perspective. Doesn’t the average person also buy his weekly groceries at the discounter instead of the gas station store? And also for nation states it is not only stupid but also an ideological blindness to not become a tax haven itself as I already expounded on in a different blog post. And offshore can be anything nowadays. The classic island in the Caribbean is often much more expensive and seem very dubious to many international business partners. Way better is therefore a highly reputable form of company which I want to introduce to you in this blog post. And the best thing is: Contrary to the common indoctrination it is completely legal if you do it correctly.

Form of the company

My recommendation to you is a Limited Liability Partnership (LLP) in Canada. This legal structure includes the following benefits:

Good reputation

Canada is a great industrial nation, group of seven member and internationally well respected. The country has the common law which is famous in many (former) British colonies. It is a fair, stable and reliable legal system. As promised above even your skeptical international customers and business partners will probably not have a problem with a Canadian company. There won’t be anything standing in the way anymore for your international business.

Right for who?

As a nomad I usually focus mainly on other nomads which are not registered in Germany anymore but travel tax-free throughout the world. But it is also profitable for (online-)entrepreneurs which are based in for example Germany. Yes, the business owners have to tax their paid out Canadian profits in their homeland of residence, but the bureaucracy can be drastically reduced. Even alone because of the missing reporting duties, the release from business tax accountants and other administrative expenditure an offshore incorporation will be profitable – even for small businesses. For the everyday business activities – if even needed – a branch office in for example Germany could already be enough. So why not moving your headquarter to Canada?

Tax exemption

The given form of company has a so-called flow-through structure. This means that the company doesn’t need to pay taxes in Canada (even no import/export or sales taxes). Only if the company will make business also inside Canada tax might charged. But if you are neither a Canadian nor live in Canada tax in Canada should be avoidable. But if you company plans to do business in Canada someday to also serve Canadian customers a similar structure can be built in more expensive countries like Panama. This structure would then be responsible for Canadian customers. Only distributed profits may be taxable at home if you aren’t a perpetual traveler like me.

Reporting requirements

Since your company doesn’t have to pay taxes in Canada you don’t need to file taxes. Goodbye external accountancy! Indeed, there are some annual reports for LLPs but those are kept very simple and can be done by a partner agency. The same is true for a virtual office because a local address is mandatory.

Costs

With my partner agency you only pay 260 Canadian dollars per year for the virtual office and the reporting service! While writing this blog post this equals about 180 euros. I am sure it will be worth it to pay just 15 euros monthly for escaping all the paper work and tax robbery. For the establishment of the company you pay a package price of only 1500 euros if I put you in contact with my partner agency. If you are interested, then just write me an e-mail.

Easy establishment

I can support you establishing your company so that the process speeds up and possible questions can be answered. Otherwise the process might take several weeks up to months. And many sent and received e-mails and questions later after everything seems to be cut and dried you might be surprised that the even much too expensive agency just canceled your order without any reason. That’s what happened to me before. Too bad when you then have to search for another agency and start the whole process over again. Learn from my experiences and just get in contact with me. My partners and I have experiences especially with digital nomads and crypto friends and can advise you very well. We can also save you from your own costly researching.

No minimum capital

Indeed, they will declare an orignal capital of 1,000 US dollars. But this is just pro forma and will be just on paper. And in practice you can pay out the capital later anyway so that it won’t be relevant down the road.

Limited liability

As the name of the legal structure already reveals a Limited Liability Partnership has a restricted liability. Even though it is a partnership the structure is legally independent of you and its own entity.

Several business areas

In general, there are no restrictions on the business activities of an LLP. But of course, there are some laws, regulations and also licensed professions in Canada as well. Details must be checked with the Canadian legislator. Generally, we can say: A normal digital nomad business like for example an online sale of info products or drop shipping won’t be a problem as long as you don’t ship military weapons or illegal drugs  But also rather classical enterprises are somewhat predestined for this Canadian structure.

The only catch

There is only one catch since nothing comes without a downside. As the term “partnership” already implied there are at least 2 persons required to form an LLP even though those persons don’t need to be natural persons. But for all those useful benefits of the Canada LLP you might easily convince a good friend to provide his name for the establishment of the company (maybe for a small profit share). Or how about your own spouse, your future inheritor or an anyway already existing business partner or any other trustworthy person? Maybe you have even another corporate entity which can work as a partner for the LLP. There are plenty of possibilities.

What are you waiting for?

If you now tasted blood and you want to start your own business or move an already existing company to Canada you may just contact me. Or if you have general questions about a free lifestyle as a perpetual traveler or about similar topics which this blog talks about you might also want to consult  a member of our team.

What do you think about a Canada LLP? Do you know some better or cheaper company structures anywhere else in the world? Then please write a comment down below!