The Handwriting is on Wall: How and Where to set up an offshore business

I think the following is somewhat related to the topic of this thread.

For several years, I have subscribed to various e-publications of The Sovereign Society. Mark Nestmann, a privacy expert affiliated with the Sovereign Society, sent out an email a few days ago on the topic of getting a second passport.

Here is a copy-and-paste of his email, which I thought I would share with you guys:


[B]Overcoming the Obstacles to Freedom[/B]

By Mark Nestmann, Wealth Preservation and Privacy Expert

Dear Clint,

When I applied for my first U.S. passport many years ago, I merely completed a simple application form and forked over $25 to the State Department. A few weeks later, my little blue book arrived, ready to accept stamps from friendly immigration agents worldwide.

That world ended on Sept. 11, 2001. Ordering a passport now sets you back $135, and you must also provide your Social Security number.

Currently, you don’t need to present copies of prior years’ tax returns to renew your passport, but Congress could impose this requirement anytime.

And it’s probably safe to assume the requirements will become more stringent as time goes on.

A recent report released by the Government Accountability Office claims the IRS could collect billions in owed taxes by blocking delinquent Americans from acquiring or renewing U.S. passports until they settle their alleged debts.

All of this is to say if you’re a U.S. citizen, it’s more important than ever to get a second passport … just in case.

A Second Passport Is Literally a Passport to Freedom

A second passport is your key to free movement, greater flexibility and legal tax reduction.

[B]It can expand your travel possibilities.[/B] Even a citizen whose passport usually allows easy international access can find a visa denied due to travel restrictions, trade sanctions, or political disturbances. For instance, the United States forbids its citizens from visiting Cuba without obtaining a “license” from the Treasury Department. No other passport carries such a restriction.

[B]It lets you travel if your primary passport is lost, stolen, confiscated, or cancelled. [/B]That’s increasingly common in the United States. U.S. citizens can be denied a passport if they owe money to the IRS or child support payments. Even U.S. citizens living abroad must pay tax on their worldwide income. If they fail to do so, the government can decline to renew their passport.

[B]It can reduce your profile to terrorists.[/B] For instance, travel in many parts of the world using a U.S. passport can make you an instant target for criminal or terrorist groups. If you travel with a passport issued by a politically neutral country, you’ll present a much lower profile to anyone with an axe to grind against your country.

[B]It gives you greater travel privacy[/B]. A U.S. passport is now equipped with biometric identifiers and a radio-frequency identity chip. It can potentially track you everywhere you travel. If you use your U.S. passport to visit a country not favored by U.S. authorities, you may face questioning—or worse—when you re-enter the United States. But, if you use your second passport to enter that country instead, no record exists of your visit in your U.S. passport.

[B]It allows you to travel internationally if your primary passport is withdrawn.[/B] The first measure many governments take if you come under investigation, or become an “enemy of the state,” is to confiscate your passport. A second passport renders that sanction much less effective.

[B]It gives you the right to reside in other countries.[/B] A passport from a member of the European Union, for instance, gives you the right to live or work in any of 27 EU countries. Another example: a passport from a member of the Caribbean Community (e.g., the Commonwealth of Dominica), gives you the right to live or work in most other CARICOM countries.

[B]It can aid in international tax planning.[/B] For Americans, a second passport has another benefit: it is an essential prerequisite to expatriation; i.e., giving up U.S. citizenship in order to permanently disconnect from U.S. taxing authority.

Who Qualifies for a Second Passport?

In most cases, if you qualify for a second passport, your spouse and minor children will also qualify.

It’s possible that you qualify for a second passport by virtue of your family history, marriage, or religion. If not, you can acquire citizenship and a second passport following a period of prolonged residence in most countries. Physical residence for a period of three years or longer is generally required to qualify.

If you don’t want to wait that long, a handful of countries offers “instant” citizenship in return for a monetary contribution or investment. The Commonwealth of Dominica and the Federation of St. Kitts & Nevis are the only countries with an official, legally mandated, economic citizenship program.

The least expensive economic citizenship program is from Dominica, with total costs for a single applicant coming to about $100,000. You’ll generally receive your passport six to nine months after you apply.

In all cases, applicants must pass a strict vetting process that includes a comprehensive criminal background check.

Overcoming the Obstacles to Freedom

Individuals who might qualify for a second passport hesitate because of perceived obstacles. Fortunately, you can usually overcome them.

In my experience, the biggest obstacle for a person who wishes to acquire a second passport is a past indiscretion that led to arrest or detention. In most cases, this will show up on the police record that must be submitted with your application.

Fortunately, most misdemeanors won’t disqualify you from receiving a second passport—only a felony. My company has successfully processed second passport applications for individuals with DUI, trespassing, or other misdemeanors on their record.

Another common obstacle is a name change. If the name on your birth certificate doesn’t match the name under which you apply for a second passport, you need to show proof that you legally changed your name. For married women who assume their husband’s name, a certified copy of a marriage certificate is sufficient. But for other name changes, you’ll probably need to go through a formal name change process. In many common law countries, including St. Kitts & Nevis and Dominica, this process is called a “deed poll.”

A third obstacle may occur if you can’t find the required documents. One of my clients, for instance, lost his college diploma, which was required for an application for second citizenship. What’s worse, it couldn’t be replaced because the university he attended had closed. The solution was for the client to produce a college transcript, together with a sworn affidavit certifying his attendance and graduation. This turned out to be an acceptable substitute for the actual diploma.

If you sincerely believe you can benefit from, and qualify for, a second passport, don’t let minor obstacles get in your way. Many times, you will be able to overcome them—and often, they are a small price to pay for the benefits that come with dual citizenship.

Sincerely,

Mark Nestmann
Wealth Preservation and Privacy Expert
Blog: Preserving Your Privacy and Wealth


A legit second passport (second citizenship) is a very costly thing these days. There are only three countries legally providing it in exchange of your investment with them: Dominica (75K for a single individual or 100K for the entire family), St. Kitts and Nevis (350K in local real estate investment), and Austria (an investment of at least 1M in your local business there). The cheapest Dominica option is described here: 2nd Second Passport Dominica Economic Citizenship Program - Second Passport and 2nd Citizenship in Dominica

If you explore your family roots, you might be eligible for second citizenship in many countries through naturalization. Yet a residency requirement of several years there usually applies.

read your post how do I open a offshore company and what forex brokers except this business entity

  1. Do a Google search for “incorporate offshore”.

  2. Nearly all brokers open accounts on the name of an offshore company.

I’m been researching online to open an offshore company to trade forex. There are so many incorporating companies advertising to open up the company and do paperwork for you for a fee. After doing some research I found out that a lot of these are really scams. Does anyone know how to verify if an incorporating agent site is legit or not? Especially in a place such as the Seychelles where most records are private.

I even found a forum cclogic where it was devoted to helping people start their offshore company and it seemed like they were really helpful. I almost went to the owners to have them help me open the company. But then I googled the forum name and found out that it was a scam. Supposedly, they pay people to go on the forums and write testimonials about the owner helping them to open a offshore entity and whatnot. More searches turned up info about the owner being a scam artist wanted in the U.S. or something.

All this just makes me so iffy not knowing what to trust. I was hoping someone who opened up an offshore company could give some pointers on finding a trustworthy place to open it for you.

Thanks in advance!

If anyone is still interested in this topic, Planet Money just did an excellent podcast about setting up an offshore business and bank account. They also interviewed a professor who talks about who has the least amount of restrictions (you will be stunned to hear who it is).

I can’t post the URL since I’m still a newbie. Just search for Planet Money Podcast. It’s episode 390 from July 27th called “We Set up an Offshore Company in a Tax Haven”

Hello, Mattiusly

Yes, there are a lot of people here who are still interested in this topic. Thanks for bringing that NPR piece to our attention. I have listened to it, and I agree with you that it’s full of interesting and valuable information.

I can help out with that.

Here’s a link to the NPR (National Public Radio) podcast —

Episode 390: We Set Up An Offshore Company In A Tax Haven : Planet Money : NPR

Here’s a link (from the NPR website) to a New York Times article on this same topic —

And, in case you want to know more about Belize, in addition to whatever you find in Wikipedia, here’s a CIA brief on Belize from their [I]World Factbook[/I] —

https://www.cia.gov/library/publications/the-world-factbook/geos/bh.html

If FATCA is going to be enacted soon anyway, why bother? Serious question.

It would depend on your reasons for incorporating offshore. For people in this forum who are mainly interested in doing it to open a trading account overseas, it could still be an option. Though to justify the expense it seems like you’d have to have a pretty sizable account. Once FATCA is enacted you would probably just lose some tax advantages, but of course with time, there are enough people doing this that they will probably find more loopholes.

I’m curious, has anyone actually had any success attempting this to open an overseas trading account?