FAQ - Offshore company formation Web hosting merchant accounts tax planning


Offshore E-Commerce FAQ – Offshore company, Web hosting, merchant accounts, tax planning and more

Below are some common questions and answers we get about our Offshore company, Web hosting, merchant accounts and tax planning services.
What are your Payment Policy?
Hosting Services: Customers will sign-up to a minimum of one-year contract on the current tariff. The annual charge is payable one year in advance. The transactional charge is payable monthly in arrears by the customer to us on all transactions processed.
Bespoke Projects: All payments are due on signing of contract unless stipulated otherwise. A down payment of 50% of the value of any work as appears in the contract will always be due before the start of any work. The balance to be paid half way through any project. A meeting is usually held to assess the progress of the work. Payment of the balance will then be expected.
What cost is there for setting up a Merchant account and what bank charges do Barclays and Natwest apply for end-customer credit card clearance?
There is no cost for setting up a merchant account. Charges for transactions that go through the payment gateway depend on the type of business, and the size and frequency of transactions. Typically these range from 2.5 – 3.75% for credit cards, 20 p per transaction and and 50 pence flat rate for debit cards. These rates are negotiated with each bank during the process of acquiring an Internet merchant account.
Is there a cancelation notice of service in place?
Yes anytime provided a notice of one month is given to us. Termination of the Contract is always subject to the payment by the customer of the service charge for the provision of the service for the minimum period of service, normally one year.
How do I organise my Tax Planning?
We strongly recommend you obtain tax advice prior to setting up a new e-commerce business. If you do not have a tax consultant we can arrange for professional advise to be supplied to you through our services. Charges will depend on the complexity of the advice required. In the first instance please get in touch with us if you have any queries that go beyond the simple formation of your offshore IBC. You can write to us at info@dynasoft.net and detail your exact requirements. Please remember to include your contact details.
What are your charges for Offshore Company Formation and Administration?
To set-up a typical offshore Company or International Business Company (IBC) prices start at £1,950 for a British Virgin Island IBC for the first year. This includes local government License Fee, initial disbursements, and Registered Office/Registered Agent Fee for the first year. These are payable in advance. After this, the annual administration costs fall to approximately £2,750 depending on actual requirements. You will pay a maximum of 5% of your profits to the local government where your IBC was set-up. Many locations do not have any exchange controls, have no company tax, no requirements to submit an annual return or audited accounts. We can assign company directors to ensure full confidentiality. We normally expect that you always name at least one local person as director of the offshore company. We will then name the other directors offshore. Some locations such as Jersey require that you register under the Data Protection Act, subject to a minimum of £1, 700 and a small fee every three years. One point you might want to bear in mind is that due to the fact that your Internet server is based in Jersey, you are advised to register your activities with the local authorities and make them exempt of any locally levied company tax (normally 20%). This is similar to registering your IBC locally. You will have to pay a minimal set-up fee of £1300 and 2% of your profits to the authorities. You can still register your IBC in any of the other locations which we serve. Any additional costs for the registration of your IBC away from Jersey would then be billed separately.
Through these services, we will be pleased to arrange your IBC for you in most low-tax territories in the world including Jersey, Guernsey, Isle of Man, Ireland, Bahamas and British Virgin Islands, Nevis, Mauritius, Hong Kong, Cyprus, Cayman islands, Bermuda, Barbados and the Bahamas. These will be subject to different tax rates, administration and formation costs. Conditions, rates and costs associated with the British Virgin Islands are especially recommended.
Administration costs are of two sorts:
Offshore tax planning
Bookkeeping, at £150 an hour;
Offshore company formation Web hosting merchant accounts tax planning
Professional advice by one of our offshore experts, at £295 an hour.
All pricing is correct as of 01/10/2015, but is subject to change without prior notice.
What documents do I need to have to set up my new offshore presence?
  • For the the IBC:
Offshore company formation Web hosting merchant accounts tax planning
Signatory cards, etc … from the chosen bank, which we can arrange through Deutsche Bank. We can arrange for you to have your Merchant Account set up with NatWest, Barclay?s Bank or Deutsche Bank;
Offshore company formation Web hosting merchant accounts tax planning
A Bankers Reference letter;
Offshore company formation Web hosting merchant accounts tax planning
The signing of our Client Acceptance Form;
Offshore company formation Web hosting merchant accounts tax planning
The signing of our Offshore company Management Agreement;
Offshore company formation Web hosting merchant accounts tax planning
For an IBC located in the British Virgin Islands, you will need to designate only one Director and one Registered Member. The same person can be both the sole Director and the Registered Member.
  • To sign up for the hosting of the Website:
Offshore company formation Web hosting merchant accounts tax planning
The signing of our service agreement.