The tax advantages of creating an ICO and related cryptocurrency by means of an offshore company
It is possible to obtain financing through an ICO with the issuance of tokens of that cryptocurrency, although for legal backing it is necessary to create an ICO + an offshore company or foundation. These tokens can be bought and sold without any restrictions. The market is responsible for setting their price based on supply and demand. Therefore, if you buy at a certain price and sell higher, you make a profit. The opposite can also happen and you end up losing money.
One of the ways entrepreneurs have found to protect their capital is to create an ICO through an offshore company or foundation. By doing so, you keep control of the business, because you receive the profits; but you do not share the shares of your cryptocurrency project with the investor. You are only selling a future service, so your personal capital is not related to that ICO, as the offshore company is the one that carries the name.
Create an ICO where it suits you best
Currently, there are several countries that offer the creation of offshore companies through which it is possible to launch an ICO. Panama is the jurisdiction that offers the most advantages for this type of actions. Incorporating an offshore company in Panama is a simple process, which can be completed completely online.
Anyone in the world can create an offshore company, which will not pay taxes for activities carried out outside Panama. This means that the profits you generate with the ICO will not be taxed in Panama. The cost of incorporating an offshore company is low and only requires the payment of an annual maintenance fee.
Although Panamanian laws have somewhat changed in recent times, it is still possible to maintain confidentiality around the owners of an offshore company. Information about the beneficial owners will remain safeguarded only by the resident agent. Therefore, you can rest assured that your privacy will be protected if you are looking to launch an ICO with an offshore company.
Singapore, Gibraltar and Switzerland are among the other advantageous jurisdictions to register your offshore company for ICO projects, but the fees are exponentially higher.
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