Webby do you know anything about the pros and cons of a Gibraltar Non-resident Company verses an Exempt Company?

Fidelity Corporate Services recommends Non-resident because:

http://www.offshoregibraltar.com/nonresident.htm

Do you know anything about this?

Groove:

I'm going blind on this.. need to confirm... but as far as I know the corp that applies to webmasters (unless they live in Gib) is a non resident company. The others don't really apply to net stuff.

Sorry.. OK... just checked... it is a non resident company that would apply to most here.

It is normal which this type of company to have nominees who are not residents of Gib... often "borrowed" from other OS juridictions.. so at the end of the day, all that actually exists in Gib is an entry in the Companies House records... and the Gib govt collect an annual fee for the priviledge :-)

So we're looking at about $535 US to set it up, $260 US a year to run it and the $750 Visa fee on top.

Not too shabby. I'm definetly going to look more into this.

Thanks Groove and Webby for all the answers. I really appreciate it!

Dude, there's no Visa fees in Europe. No yearly Visa fees, either.
And, you can use as many EU processors so you can have backups without having to pay each company $750. Knock the $750 off your total. :)

psyko514:

What VISA fee? The EU.. least from what I know at the moment, does not apply any VISA fees. Course, that could change sometime!

That is part of the reason we have a "face" in the EU.. there is no need for the sperm count and DNA test....

I was under the impression that you could use either Exempt or Non-resident if you do not have a business presence in Gibraltar. And Qualifying if you do have a presence in Gibraltar (note, you can not however sell to Gibraltar resdents).

Sorry Groove.. I am only familiar with the non resident corp... we looked at the others, but from what I remember, there seemed to be more record keeping involved and it was not a "true offshore". But this was a few years back - it may have changed a bit.

Excellent... I wasn't 100% if there's a EU fee or not.

When I make my first million, I'll send you all some cookies.

psyko514:

How quick you gonna make that million.. I'm hungry:glugglug

Thanks anyway :)

In the UK yep, but not in other countries, I know from working out of Holland and Spain that you have to register for sales tax from the first $1.

I got this headache even thinking about VAT :1orglaugh

WOW that sucks. I think in some of the EU countries there is a minimum though. There is a minimum here unless you are a corperation.

But as we do not sell in Czech we get back all the VAT we pay out. How many of you get a check every three months from the sales tax people? :)

make it quick before Visa changes the rules again.

Exempt is not an option (as long as you're not ready to disclose all info on beneficiaries and directors including, but not limited to, the provision of bank and business recommendations for 5+ years relations period). And even for non-resident companies, billings will ask you for a resident principal - and certainly it could be a pain 'cause billings treat "principal" as a beneficiary (i.e. a shareholder, not just a director) often. There're no bearer shares in Gib, so... you could stick to nominee shareholders as well, but you're to find that almost all nominees provided are _legal_ estates, not just a person - ruining the scheme, because the billing would not be satisfied with "ABC Ltd. is a shareholder of BCA Ltd." statement.

And as of 100K threshold, just a quote:
"The original proposal, in June 2000, set a threshold for registration and collection of Euro 100,000; meaning sellers with EU sales below the threshold need not comply. The Directive does not mention a threshold for registration. Whether there will be a threshold for the entire EU, or whether individual Member States will set their own thresholds is not known."

The european union has been collecting VAT inside the EU for a while now. As of July 1st it will apply to anyone oustside the EU doing business with people inside the EU. All the processors that realize this is going into effect are trying to gear up for it even as we speak.

http://www.ecommercetax.com/doc/061602.htm

Man...I can't believe no one has heard of this. This goes into effect on July 1st:

http://www.ecommercetax.com/doc/061602.htm

it's been all over the boards..do a search for VAT on this board

Gibraltar corps and all aside, you start mucking around with offshore, and still are living in the US, you're very likely to have the IRS on your ass...remember to report *every* cent of income accurately, keep detailed records, because they even have access to the ATM cameras where you withdraw the money...as it's been explained to me going offshore can be almost an automatic trigger for lots of unfriendly federal attention.

-doug

He's from Canada. What is this IRS thing you speak of?

The U.S. bought Canada last week...u didn't hear? :thumbsup

Gib is a great place for a holiday. Full of tacky and nasty discos to keep the British troops happy, and right next door to neighbouring Spain's hot and bikini ridden South coast (when the border is open).

One thought I did have when Gib companies first came up is the ongoing sovereighty tussle with Spain. Gib is a British dependancy and Spain don't like it. Talks have been ongoing for a while now about possibly sharing sovereignty. Whether that will have any affect on the company legal system. I dunno.

I'm talking about High Risk merchants... you can not run a adult paysite if you are incorporated in Panama or Islands of Man since Visa doesn't process High Risk there

crescentx:

This offshore stuff is not intended for US folks - they are cuffed from the word go. This applies whether they live in the US or not. Tho the IRS does have "some" allowances for US citizens living abroad.

For 99.99% of others (except Saudi, Lybia and a couple more countries), there is no problem. However, as a rule, if you are living in your country of citizenship it is required that all revenue taken into your home country be declared to tax authorities.

However, if you live outside your country of citizenship, tax is not normally payable.


the indigo:

I hear ya! :-) I never would have included the Isle of Man as an "offshore". It does involve a structure, but we do have high risk processing on other "islands". Horses for courses :-)

I heard an interesting tip once. Wear a motorbike helmet when you use the ATM.

Webby is a real expert in offshore field. He taught me a lot things at the time I setup Gilbraltar company with ibill. Hi Webby!

I use http://www.offshoregibraltar.com/ as well. They get the things done and do it fast. If you are hurry, you can buy their existing company. Or you can setup a new one.

They do offer nominee director. As far as know, it's a guy from England. Or you can setup a Panama company to hold your Gibraltar company.

I'm not sure what you are getting at here, since the processors are simply pass thru service companies working for their clients. The processors, as I see it, have no reason to do anything insofar as VAT goes. If individual corporations want to register and submit their VAT payments that is up to them.

Before you start screaming how wrong I am, give me some instances where processors in the industry collect and remit to ANY government ANY taxes on behalf of their clients.

Imho Gibraltar is the best place to incorporate within VISA EU region at the moment. I used http://www.offshoregibraltar.com/
No complains with them.

Don't want to start an argument here, and I admit this is only my interpretation. I hold up my hands and say 'I might be wrong'. This new VAT tax ruling applies to any business, U.S.A. based or otherwise, that supplys digitally downloadable products OR SERVICES to residents of the EU. I'm pretty sure Epoch (or globill etc.) 1) Have EU webmasters, and 2) Charge them commission for a service.

I would read that as making them liable for VAT come July 1st.

I never scream :-) Infact...i think you write some of the most informative posts on this board. We're still in the process of figuring out how this will work ourselves. I really have no idea, but I do know from chatting with some people from different processors on Ynotmasters that each company is trying to figure out a stance to take on this. What the solution will end up being I don't know either. It very well could be that each merchant will have to figure out a way to tally up all the different tax rates and pay each country themselves. I do realize that it isn't the responsibility of the processors to pay these taxes, but the task of seperating out what EU member state a person buying a subscription is coming from would have to be something they were involved in.

-joe

got a question:

so i incorporated in the Gibraltar, now I'm my own director and it automatically gave me adress of the company. If I try to signup for the CCBiLL it asks me for business info so I enter whatever it gave me automatically in the incorporation papers, now when it asks me for principal info, can I enter exact same adress given to me automatically in the incorporation papers ? or I have to get another legit adress in Gibraltar ?

also what is the country code for Gibraltar ?

webby where you at ? :winkwink:

bump

Bump,

I'm also interested in a gib corp. Who did a setup with ccbilleu with an gibraltar corp?

Do you have an office service and bank account in gib?
Did ccbill call you in your gibraltar office?

Who has already incorporated in gib with a working processor setup?

Questions, questions, questions...

LMAO!