CryptocurrencyHow to Start an Offshore Company for Cryptocurrency Benefits?

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Deciding on which countries to expand your business to can be a complex and difficult decision.  As an aspiring entrepreneur, you might have heard of the lucrative business environment of Canada and might be wondering about how you can set up a cryptocurrency company in Canada successfully to gain access to unique benefits. In this article, Tetra Consultants will provide the ultimate guide on how to start an offshore company for cryptocurrency benefits so that you may better understand this business phenomenon and make a more informed decision about whether you should set up a cryptocurrency company in Canada as well. 

This article will be divided into 2 main segments.  Firstly, we will explain what are the major advantages of cryptocurrency companies motivating many to start such an offshore company for cryptocurrency benefits.  Secondly, we will go over the process of starting such a company.

set up cryptocurrency company in Canada

Benefits of Cryptocurrency Companies

Greater privacy and security for your assets and holdings

One of the major reasons for why many businessmen decide to set up cryptocurrency based businesses in offshore locations is due to benefits accrued to privacy and security maximisation.  While such digital currencies and their owners are already kept separate, through the setting up of an offshore cryptocurrency company, even more secure levels of protection will be provided to your assets, especially digital based ones.  As such, ensuring that your international business company (International Business Company) remains based in such forms of digital currency provides unique security benefits to you.  

Tax benefits 

By having a significant proportion of your money stored offshore in the form of virtual currencies like Bitcoin, this can greatly lower any tax burdens faced by your company in the home country.  Furthermore, many countries within the European Union (EU) such as Belgium and Finland usually view cryptocurrency as a financial related service or commodity, instead of a usual currency.  Due to this trend, the governments of such European countries, and many other Western countries including Canada, have been willing to offer exemptions from Value Added Taxes (VATs) or sales taxes for such crypto currency based businesses.  

Hence, by setting up an offshore cryptocurrency company, you can gain unique tax advantages to reduce the costs accrued to your business in the form of taxation.  

Process of starting an offshore company for cryptocurrency benefits in Canada

One of the very first steps to  starting an offshore company for cryptocurrency benefits in Canada is deciding on the business structure of your offshore company for incorporation. There are 2 main types of business structures utilised for such cryptocurrency companies, namely International Business Companies and Limited Liability Companies .   For instance, one can shift their currently owned cryptocurrency offshore by surrounding two distinct International Business Companies.  While the main offshore company, largely upheld with any type of cryptocurrency, has the main purpose of long term investments, the resulting company serves as a exchanging company, where its funds are invested by this primary company. 

Thus, the combination of a private foundation and an International Business Company allows for the offshore holding of cryptocurrencies and other digital assets.  Yet, you may still have some doubt about how this combination of an International Business Company and private foundation will work.  Firstly, an offshore company must first be set up and incorporated as an International Business Company.  Next, this International Business Company will then be held by a private foundation for beneficent purposes.  Once this arrangement has been successfully established, the International Business Company can opt to receive any form of cryptocurrency as its initial offer capital, as long as this private foundation grants gifts in the form of cryptocurrencies as well.  Through this method, many international investors with assets worth millions of dollars are able to utilise offshore cryptocurrency money to gain the two key benefits of privacy and security, as well as the multitude of tax benefits outlined above.

These processes can similarly apply to Limited Liability Companies as well.  Many individuals from the United States (US) have frequently sought for methods of avoiding any audits conducted by the government’s Internal Revenue Service (IRS ) department, especially for accounts holding digital assets and various cryptocurrencies.  However, by moving their self coordinated and managed individual retirement accounts offshore, as well as making investments in cryptocurrency by setting up an offshore Limited Liability Company which is directly controlled by these individual retirement accounts, aforementioned audits and further taxation by the government of their home country can be reduced and optimised.

As such, these legal structures explained above will ensure that there are an increased amount of layers built between you and your digital assets and cryptocurrencies, thus leading to increased security and asset confirmation.  While certain tax obligations are still necessary, through these methods, such taxes are minimised, optimising total costs of your business and ensuring that earnings from any cryptocurrency investments and growth can be reinvested into your business without being subjected to any taxes on the condition that it remains offshore.  This ensures that profit can be maximised for your company, and that cryptocurrency benefits for such an offshore company are used to its fullest potential and truly maximised.

Conclusion

Navigating the country of Canada’s complex business climate and legal environment as a business intending to set up an offshore cryptocurrency company might be a challenging process – a hassle to say the least.   However, with the benefits of heightened privacy safeguards and more securitised processes, alongside various tax and accounting benefits, it is no surprise that many international actors continue to set up cryptocurrency company in Canada.  As such, Tetra Consultants hopes that this article has provided you a much better understanding about starting an offshore company for cryptocurrency benefits in Canada so that you can truly decide on whether you should do so yourself.

So, what are you waiting for? Contact us to find out more about the process of starting a business in Canada, and our dedicated and experienced team will respond within the next 24 hours.  Tetra Consultants will not only empower you by helping to navigate the different regulations of Canada, but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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