The Truth About Your Wealth Planning Structure
Where should you incorporate your company? A common question that is asked because it has no simple answers… it depends on what you’ll be doing as business, where you’ll be, what you plan to do with it, what your budget is, whether it fits into a strategy involving trusts or companies, etc.
Here’s the bit that I believe is never articulated clearly in the wealth management/offshore world (cause most simply just want your money–they say thank you, I’ll hear from you next year again when you need to pay your annual fees). There are three cohorts of the offshore world that are not properly appreciated.
The “West or 1st world” are still tops in terms of legal support, professionalism, promptness and accuracy–however they are not perfect and put bluntly, they are getting worse.
I wrote about one example of this below:
Many of these countries want to absolutely link every single move you make to their watchful eye, and connect everything to your bank account & expenses, effectively removing your autonomy and flexibility from your operations.
But here’s the problem… these jurisdictions, the “Tier-1” offshore jurisdictions are still the most punctual, accurate, professional, timely, understanding and flexible in an ironic sense. In other words, they’re becoming unfriendly but they’re still one of the friendliest.
Other side of the coin, there’s been a whole bunch of people providing you with empty promises about jurisdictions–especially with regard to the newfound freedom, simplicity and ease of operations abroad. When I’m saying this, I’m overweighting my words towards Latin America. What people are going to find the hard way is that most operations are:
- Slow/bureaucratic
- Imprecise/incorrect
- Illogical/senseless/idiotic
- Unprofessional, sloppy and unmotivated
- Criminally oriented (overcharging, extortion)
In my research, and in my experience, this is throughout everywhere in Latin America…and perhaps the same in Southern Europe as well. It’s worth debating as to reasons (legal system, language, religion…?) but in any case, I promise you that Swiss, English or American efficiency will NOT be found in Colombia, Argentina or Portugal.
This means that moving your warehouse, IT business, manufacturing hub, calling service or restaurant to these places is almost never swift, easy and timely. It involves immense connections on the ground and lots of patience.
Third category of companies are in the dust bin… this category are jurisdictions that once were great but now essentially belong to the dust bin. I’ve covered some below:
Some other names appear to be Costa Rica & Curacao (with the exception of gambling businesses), Aruba, St Vincent and Grenadines (with exception of Forex Licenses), Vanuatu (exception for backdoor citizenship or banking license), Samoa and a few others.
I can’t say why, other than banking probably squeezed them out and they couldn’t keep up, but there are a handful of jurisdictions where it no longer makes sense to extend a significant exposure, if any, anymore.
Closing
Most services providers avoid telling you this truth about the “sophisticated” Tier-1 and Tier-2 jurisdictions because they’re selling you something that comes in the form of high legal fees and the others are keen to get your money by filling you with empty promises of security and simplicity, supported by ignorance and a demand to find somewhere new.
It’s worth stating that I am not stating that business is easy to conduct in Germany… or that one can conceivably start with nothing, borrow no funds and survive in a place like Canada… I don’t even think that’s possible anymore. However, if a contract states a clause in Canada, it’s still more than likely abided by… while it’s guesswork elsewhere and largely depends upon your lawyer.
Why say any of this? I assist people who wish to internationalize themselves, reduce their risks, consider moving themselves and/or their assets abroad and execute long-term strategies with their investments and family planning.
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Open Door Consultancy: A call service or a custom report form that can be found/booked at opendoorconsultancy.net
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A personalized, comprehensive approach to your wealth planning, management, lifestyle management and investment portfolios. Given it’s time dedication, this is extremely limited to who can qualify, nevertheless I encourage you to contact me.
It makes sense to view these locations honestly to enact the best holistic portfolio and outcomes for you and your family. While others try to sell you on one location or another, promising it will fit your goals… the reality is that it’s far more nuanced than that–and one should be careful before trying to set up an entire structure by themselves, lest it comes crashing down.
#StayOnTheBall
