Frequently Asked Questions
- What is the main purpose of Fiduciary Factoring?
- What kind of services do you offer exactly, and what are the related costs?
- What kind of paper will I have to provide you with?
- Should I include these expatriated funds on my tax return?
- What kind of company will invoice my clients?
- Why should I use your services instead of working direct with my offshore company?
- What happen if you exceed the initial budget of 20,000 EUR during the year?
What is the main purpose of Fiduciary Factoring?
The main purpose of Fiduciary Factoring is that from a tax point of view, you save a lot of money on corporation and income taxes. Most of these delocalised funds can be used tax free. This is a real advantage on liberal services which are usually high tax rated.
Moreover, all administrative tasks, from issuing an invoice to fax it or send it by post are done by our staff. Save time on administrative & boring tasks!
Top of the Page What kind of services do you offer exactly, and what are the related costs?
We are part of an International Tax Planning Group able to offer a complete range of Tax Planning services. Incorporation of Offshore companies, Fiduciary Factoring, Private bank introduction and all related legal advices.
More precisely, what we want to highlight on this page are our Fiduciary Factoring services, which means we acts with our own name for and on your behalf.
Two main options:
- The first one: If you want us to invoice your clients for less than €20,000
per year, our fee will be a one off with amount of €490 including:
- The issuing of the Sub-account on the Agency Agreement used,
- Your personal account on this web site to request an invoice or a payment, and to consult your statement and balance,
- An international prepaid card to receive and withdraw this money
- Our commission on factoring will be 12% of the invoiced amount.
Our overall price is:
- Initial €490.00 to set up your account.
- 12% commission on each invoiced amount. - The second one: If you want us to invoice your clients for more than €20,000
per year, our fees will in general be:
- €1,990 euros for an offshore company with bearer shares certificates, including:
-
- all usual provisions,
- offshore registered office,
- company secretary,
- all taxes,
- opening a corporate bank account. - Monthly €150.00 to manage the structure.
- 10% commission on amount invoiced to you client.
Our overall price is:
- Initial €1990.00 to set up your offshore company.
- Monthly €150.00 to act as company secretary.
- 10% commission on each invoiced amount. - €1,990 euros for an offshore company with bearer shares certificates, including:
Regardless to the chosen option will received legal advices regarding your personal situation and characteristics.
Please contact us to obtain a full and accurate quotation.
Top of the Page What kind of paper will I have to provide you with?
As per our activity and the regulations which apply on, we will proceed to a complete identification of you (Certified copy of your passport or National ID Card + recent proof of living address) to know your exact name and your exact postal address.
Moreover, to conduct the business in a professional way, we will need to understand exactly what we are invoicing on your behalf, which means, we will need an exact description of all services the final client (the one we invoice) is receiving for this price.
If we invoice a European company, we will need to know its intra-EC VAT number. As a result, invoices will be zero rated as defined by European regulations.
We know our client personally and want to offer the best services in a 100% confidential way. All information we've got about you or your clients are treated as confidential, and all our staff are trained and guided in the respect of the professional secret principles.
Top of the Page Should I include these expatriated funds on my tax return?
We encourage our client to act respectfully to their fiscal legislation, which means, all funds which are used for a personal benefit should be included in the annual tax return.
Nevertheless, in the case of a corporate bank account, all these funds belong to the company (registered in a Tax free legislation or small fix annual tax legislation). Therefore, you do not have to declare anything.
Of course, international cards, prepaid cards, and anonymous debit cards provided by the financial industry suggest that not all clients declare these funds! Who knows? (Anonymous card, Swiss bank account, Nominee Director and Shareholders, Bearer share certificates…) Everything has been thought for you to enjoy tax free incomes!
Top of the Page What kind of company will invoice my clients?
It depends on your clients' residential country. For example, for all European countries (except for United Kingdom) the invoice will be issued by an English Limited company in good standing with working staff, VAT number, Financial Statement sent to Companies' House and Inland Revenue every year, paying taxes in England and able to provide your clients with an English taxation certificate.
Business, for which final client has to be invoiced, would be in England, invoicing would be done from another European Country, or other places if appropriate.
Top of the Page Why should I use your services instead of working direct with my offshore company?
The reason is simple. If your client is outside of Europe, he might accept an invoice from your offshore company, and pay this invoice on an offshore bank account.
Unfortunately, most of the time your clients will not accept an invoice from a company established in a tax privileged jurisdiction. Most of the European countries, to avoid tax evasion, apply automatic tax on payments made for a beneficiary registered in a tax free or privileged place. In that case, there is no tax saving.
That is why it is interesting to have a European intermediary which confers a European dimension to the commercial scheme, and allow tax free invoicing.
It is now common for any European company to contract and work with English suppliers. The result is a European commercial relationship, allowing tax free factoring thanks to the Agency Law, major part of the Common Law which one regulates the law of all Commonwealth countries.
Top of the Page What happen if you exceed the initial budget of 20,000 EUR during the year?
If you need to invoice your customers through our services for less than 20,000.00 euros a year, then you do not require having your own Offshore company. We can suggest a solution customized to these specific needs.
However, from the moment the amount exceed 20,000 €, then it is widely preferable having your company outside EU. You can change from one option to the other whenever during the year. However, the expenses of set up for the company and any other related fees will have to be paid and the initials fees will not be refunded. Despite our recommendations, you can also stay with the initial scheme, but you have to be aware that the percentages of our fees will increase up to 35 %.
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