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Best Country to Bank Offshore and Where to Incorporate

here's a question we get a lot at nomad

capitalists and no doubt forums and

message boards all over the internet are

being asked the same question what is

the best place to set up offshore

banking and where should I incorporate

I'm gonna answer that question in this

video hi I'm Andrew Henderson and so

this is a question that was asked as one

thing hey what do I do for this and what

do I do for that and I'm going to

approach this as if the person is asking

for their business because that's the

area where most people get tripped up

okay if you have a business you need to

set up an offshore company and you need

to set up the offshore bank account to

collect that company's money you then

would also like to set up a separate

offshore bank account to where you can

pay yourself the money from that company

because you want to be separate from

your company but let's keep that

separation for a future video

the issue here is where do I set up my

company's offshore banking the answer is

as always it depends for me for global

entrepreneurs if I can get a bank

account in Singapore I'm really happy

with that but the question is what kind

of business are you running what kind of

minimum deposit do you have how much

cash are you churning the minimum

deposits the business bank in Singapore

is going to request is more than what a

lot of e-commerce entrepreneurs or other

people who are turning over stock

frequently and they need to be you know

turning over invoices and and put in

their capital back out into product it's

more than what they want to often

deposit so if you have to deposit let's

say 50 thousand dollars to open an

account in Singapore and you only want

to put five thousand dollars in then you

know Singapore is not gonna be the best

for you because their requirements are

going to be too high what kind of

company do you run what kind of products

are you selling if you're in the

cryptocurrency space or something

controversial some banks just aren't

going to want to deal with you so

whatever may be best for everyone main

it'd be best for you because they simply

won't work with you where are you a

citizen uh if you're

US citizen it some banks in Singapore

simply won't work with you so there are

equations that go into that I mean where

the best places to Bank offshore is a

company there the traditional wealth of

zitz Singapore more expensive is going

to be Switzerland or Liechtenstein so

you know you want to look at the

established wealth havens first and then

from there you want to go down to the

onshore jurisdictions from there you

want to get into the offshore

jurisdictions from from my money the

best place to bank is multiple places I

want redundancies for any kind of

offshore bank setup because you never

know when that Singapore bank is going

to close down your company's account

that's something I see quite frequently

when people come to me because they

didn't structure the company properly

and so the only answer I can really say

behind

besides you know go to the best possible

jurisdiction ie Singapore is have

multiple accounts so even if you do get

into Singapore maybe also go to one of

the islands maybe also go to you know

one of the Puerto Rican or st. Lucian or

st. Vincenz Ian banks or Vanuatu Bank

and and have two or three different

accounts that you're never left holding

the bag now here's where that factors

into where you should incorporate okay

because the the two questions were asked

together where do I Bank for my business

and where do I incorporate here's where

they connect if you set up a company in

one of the the lower-class is that would

call them tax haven jurisdictions okay

what are these Belize Marshall Islands

Samoa God from mid of the Gambia in

Africa any of those okay

those are not jurisdictions that are

widely respected and so people often to

walk into those kinds of companies

because they say oh there's zero tax

there's their reporting requirements I

can do whatever I want that sounds

fantastic I'll just pay an annual fee

they'll leave me alone and that's

largely true but you know what the next

level up like a company like a BVI they

get a bit more respect so while those

lower class jurisdictions seem easy try

finding very many banks who are gonna

let you work with them okay try going to

Singapore and saying I have a believes

come

will you accept me now Singaporean banks

are desirable because they're stable

they're stable because they're

conservative and they're conservative

because they just don't take anyone

whose source of funds they don't know to

potentially get them into trouble or be

left holding the bag in some way so a

Singaporean Bank isn't gonna want to

take a Belize company it's like a

supermodel saying you know what I'll

pass with a guy with a Dorito stain on

his t-shirt you know just no need for

that I have other options I don't need

the guy with a stain on his t-shirt

that's that's all it is and so if you go

to the next level like the BVI is the

more respected jurisdictions that might

be the first place that I would start

because what is the BVI do they do a bit

deeper due diligence they require you to

answer more questions to set up the

company so while I was able to set up a

Belize company like that when I set up a

BVI companies an experiment it took

longer there was a bit more involved and

so for us at nomadic capitalist we do

that every day we know what to do but

for the average person they might say oh

that's a turn-off but what you're gonna

lose in the long run is respectability

and so from then from BVI you go to the

hybrid onshore offshore jurisdictions

like Hong Kong then you get to like the

EU at jurisdictions as you go up the

food chain you can get more and more

respect now the other answer is you may

want multiple companies you may want to

have a parent in the subsidiary you may

want to have a couple different

companies each performing different

functions and having a transfer pricing

agreement it depends on what your

company's doing it depends on how much

staff you have if any depends on if you

have IP it depends on a lot of different

factors okay but there may be a need for

multiple companies there may be a need

for one company that gets you into a

high-quality bank but it limits your tax

exposure okay because let's say you want

a bank in the European Union yes there

are a few banks in Latvia possibly

Cyprus possibly Malta that will take

let's say a Hong Kong company but it's

increasingly becoming difficult they're

asking a lot of questions they're very

paranoid about that okay so maybe you

just want to have an EU company they

could see the EU banking if that's

something that you need and then that

interacts with the other company and so

then if you have two companies well then

maybe you know the

the second company doesn't need to be a

higher class jurisdiction maybe it can

just be in the middle like BVI okay so

these are the important factors that you

have to consider the more complicated

your business is the more complicated

your plan needs to be for a simple just

one-man show two-man show business I

would still avoid these low-class

Seychelles Samoa those have caused

people a lot of problems in my opinion I

have used them in my experience because

I know what I'm doing in some cases I

use them for certain purposes but for a

general operational company I want to at

least get up to that middle range

offshore jurisdiction where they're

requiring something from me where

they're not giving me total privacy

total anonymity total freedom to run

wild I know that sounds appealing but in

a world where you need to collect money

you need to be able to move that money

out to your own personal bank account I

think having a certain level of

respectability is important so the

answer is go is high in the food chain

as you can go before you a trigger a tax

obligation ie I don't want to go all the

way up the food chain and start an

Australian company because now that's

gonna cost me a lot of money in tax and

on the on the the banking side go is

high up the food chain you can go that

your company profile and your funds will

allow you to go here's the thing though

don't conflate the two things don't

think that oh if I want to Singapore

bank account I have to set up a

Singapore company so many people do that

and then they come into Singapore and

then they end up paying a lot more tax

than they would need to with a

traditional offshore company or an

onshore offshore hybrid that might have

offered them the chance to Bank in

Singapore if only they were willing to

put a little bit more money in the

account so you know these are the

factors that we look at when we're

putting together someone's offshore plan

I like to keep the text very low I was

to keep the banking profile very high

and it's a nice it's a matter of working

at the XY coordinate to where the two

meet at the perfect place hi I'm Andrew

Henderson from nomad capitalists I wrote

this book which you can find on Amazon

to distill a lot of the stuff we talked

about in these videos and a lot of the

stuff I've learned over the last decade

plus traveling all around the world

teaching you about how to legally reduce

your taxes build your personal

freedom and create wealth faster

definitely get a copy of this book if

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