Where is the best place to open an offshore company for a trader?.

Trading entails high earnings, and high earnings mean high taxes, which, understandably, no one wants to pay.

Traditional offshore jurisdictions are usually set up by large companies or financial institutions to avoid taxes. It might seem like a trader wouldn't bother with registering a company.

But it all depends on how much you earn and how much you're willing to pay in taxes.

For example, let's say a trader earned $3,000 or 120,000 rubles in a month. The current tax rate is 13%. This means they'll have to pay around $390, and some earn even more.

Since I'm one of those few, I had to specifically address the issue of conducting trading operations through a legal entity, also known as an offshore company.

1. Which offshore company is best? The most common options are the Seychelles, Belize, Panama, Dominica, and a few other jurisdictions, such as Scotland.

First, choose a jurisdiction that will completely exempt you from taxes. For example, if you register a company in Scotland, you'll have to pay taxes at your place of registration or use a complex tax avoidance scheme.

In Dominica, however, a company is completely exempt from taxes for 20 years, with all taxes replaced by a special levy.

The cost is around $1,200, and you'll have to pay the same amount annually. That's just $100 per month, which is a significant increase from $390.

Opening a company takes just a couple of days; there are currently a sea of ​​companies offering this service online.

2. Bank - a company requires a bank account, and it's clear that it's best to choose a foreign bank, specifically a bank, rather than a Russian representative office.

Account opening is handled by the same company that opened your offshore account; accounts in Baltic banks and Cyprus are easily opened, which is currently the best choice.

The opening fee is an additional $300.

Maintenance costs around $30 per month, which includes a plastic card and online banking.

So, legal Forex trading will cost you around $130 per month, meaning this scheme is only profitable if your monthly income exceeds $1,000.