IBC case study

SITUATION:
Mr. Sergei is a Russian citizen with residency in UAE and is a highly paid technical independent consultant in petroleum industry who works with companies from Russia and Middle East.

THE PROBLEM:
Mr. Sergei is interested to invest his incomes on the UK real estate market and in the same time to find an efficient invoice solution for the clients in the Middle East.

THE SOLUTION:


Dema Partners LTD incorporates an offshore company IBC in the BVI for Mr. Sergei and organizes banking facilities with a prominent world bank in London. The BVI has an established financial industry. Mr. Sergei is appointed as the sole Director and Shareholder of the Offshore Company and arranges finance with our assistance, through the bank for the properties purchase. Thru this offshore company he will purchase the two real estate properties in London, one worth 500,000 £ and other 1 million £.

Therefore the BVI Offshore Company is the registered owner of the properties and registered itself under the Non Resident Landlord Scheme as the property is to be rented out to cover the finance payments. The BVI Company can also claim UK tax relief on the loan interest to set against any possible rental income profit.

In the same time Mr. Sergei is able to invoice through his offshore company to Middle East clients, and have the fund remitted directly to his London based bank account without attracting taxation. Related to this, Mr. Sergei is also benefiting from the Limited Liability that a BVI Offshore Company affords him, so any threat of damaging litigation is greatly reduced. A BVI offshore company presumes low startup cost and low maintenance, excellent reputation and credibility, British style on legal system and working with world class financial institution in a political stable market. All of those helped Mr. Sergei solve his issue and produce wealth and reducing cost.

Mr. Sergei is able to utilize his accumulated funds anywhere in the world as he is able to access his bank account over the internet and utilize a globally accepted bank cards on the account.

NOTE:
After 3 years Mr. Sergei decides that he would like to sell one property as the UK real estate market has shown good growth. The second property is sold for £ 1,500,000 and has made a capital gain of £ 500,000. No UK tax is levied on this gain as the property is owned by a BVI Offshore Company and the monies are able to be held with the bank in London for further use or reinvestment. Mr. Sergei has been able to realize the Capital Gain on the property and remove any possible tax burden on the UK rental income. He has also been able to utilize a world renowned bank in London to finance the properties purchase.

IBC solution case study