What to choose a legal entity or individual for trading on the stock exchange
If you decide to trade on Forex or another market, you must take into account that in addition to trading, there are also a lot of other organizational issues.
One of these issues is the choice of a person on whose behalf a trading account will be opened with a brokerage company.
Today, most brokers allow registration for both individuals and companies (legal entities).
This opportunity allows you to optimize taxation as much as possible, that is, work completely legally, while reducing the amount of tax deductions.
To start working through a legal entity, you will need to open a company in a tax-free or low-tax jurisdiction. Usually these are offshore zones or countries such as the United Arab Emirates, Cyprus, Macedonia, Barbados, etc.
Then open an account from which the deposit will be replenished , and to which the resulting profit will be withdrawn.
Advantages of stock trading through a company
First of all, this is taxation, depending on the country, you will pay from 0 to 10% tax on all profits.
It is not necessary to advertise your identity; the broker will not know on whose behalf the trading is being carried out and, accordingly, there will be no data leakage.
An account abroad, now many banks are quite reluctant to open accounts for ordinary citizens, while there are many companies offering a company with an already open account.
Less attention to large sums; when transferring large amounts, questions arise more often if this transfer is made in favor of an individual.
In some cases, it is possible to obtain a residence permit in the country of residence of the company.
Advantages of working through an individual
Less time to prepare for opening an account with a broker; you just need to register with your passport details.
There are no additional costs required, while company registration and associated costs are rarely less than $1,000.
No additional expenses - payment for an accountant's services, annual expenses for maintaining the company (from $800 per year), taxes when withdrawing funds from the company to a personal account.
As a result, we can conclude that when choosing an option, everything depends on the amounts with which you are going to trade on the exchange. If the amount of your deposit does not exceed $10,000, then there is no point in even considering the option of a legal entity.
In the same case, when the deposit exceeds 100,000, it is better to open a company and incur fixed expenses than to pay high taxes from an individual.
Brokers for opening an account - https://time-forex.com/spisok-brokerov