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 are the fees for any additional services?
- What kind of documentation will I have to provide?
- 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 happens if you exceed the initial budget of 25,000 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 can make significant savings on corporation and income taxes. Most of these delocalised funds can be used tax free.
Moreover, all administrative tasks, from issuing of invoices to transmitting them to your clients are done by our staff. Save time on administration and tasks that are not core to your busines!
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, we would like to highlight our Fiduciary Factoring services, in which we act in our own name for and on your behalf.
Two main options:
- Option 1: If you want us to invoice your clients for less than €25,000
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 personal bank account 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. - Option 2: If you want us to invoice your clients for more than €25,000
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 fee of €150.00 to manage the structure.
- 10% commission on the amount invoiced to your 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 of the chosen option, any secondary intervention will be subject to separate invoicing (see our fees in FAQ below).
Please contact us to obtain a full and accurate quotation.
Top of the Page What are the fees for any additional services?
Any additional services performed by us will be subjected to invoicing as indicated below.
Detail of additional Fees:
| Cheque paid in | € 35 |
| DHL Service to E.U. countries | € 55 |
| DHL Service to other other countries | € 100 |
| Administrative fees | € 65/hour |
| Invoice cancellation | € 35 |
| Bank forwarding | € 120 |
What kind of documentation will I have to provide?
As per our activity and the regulations which apply to it, we will conduct a complete personal identification (Certified copy of your passport or National ID Card and recent proof of home address required) to confirm your correct details.
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 that 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 clients personally and want to offer the best services in a 100% confidential way. All information that we retain concerning you or your clients is treated as confidential, and all of our staff are trained data protection law.
Top of the Page Should I include these expatriated funds on my tax return?
We encourage our clients to act in accordance with their local fiscal legislation. 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 (which will be registered in a Tax free or low tax country). In this case, there is no requirement for you to make a declaration in your home country.
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 accounts, Nominee Director and Shareholders, Bearer share certificates…) Everything has been thought to help you to enjoy your tax free income!
Top of the Page What kind of company will invoice my clients?
It depends on your clients' country of residence. 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, annual returns made to Companies' House and Inland Revenue each year, paying taxes in England and able to provide your clients with an English taxation certificate.
Where the services for which the final client will be invoiced are provided in the UK, invoices will be issued from another European Country, or a country outside the EU where 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 to an offshore bank account.
Unfortunately, many 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 low-tax offshore location. Where this is the case, the benefit of the low or zero tax rate is lost.
This is precisely why it is beneficial to have a European intermediary to participate in your commercial transactions, facilitating tax free invoicing.
It is increasingly common for European companies to contract and work with UK suppliers. The result is a European commercial relationship, allowing tax free factoring thanks to the Agency Law, a major part of the Common Law which regulates the law of all Commonwealth countries.
Top of the Page What happens if you exceed the initial budget of 25,000 EUR during the year?
If you need to invoice your customers through our services for less than 25,000.00 euros a year, then you do not require your own Offshore company. We can suggest a solution customized to these specific needs.
However, from the moment the amount exceeds 25,000 €, it becomes advantageous to have your company based outside EU. You can change from one option to the other whenever you require during the year. However, the expenses incurred in the set up of the offshore company and any other related fees must be paid and the initial fees will not be refunded. Although we don't recommend it for higher value clients, you can also continue to use the initial scheme. In this case you should be aware that the percentage charged for our fees will increase up to 35 %.
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