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Jersey

Basel eBusiness Limited
First Floor
International House
41 The Parade
St Helier
Jersey | JE2 3QQ

Telephone: +44 (0)1534 500 900
Facsimilie: +44 (0)1534 500 901

Switzerland

BasTrust Corporation Limited Geneva Branch
24 Route des Acacias | 1227 Les Acacias
Geneva
Switzerland

Telephone: +41 22 318 81 18
Facsimilie: +41 22 318 81 19

Part of the Basel Group 

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Grant Twine,
Managing Director

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CASES with Grant Twine

Access Europe – the low tax, no hassle approach

Thursday, September 08, 2011

The strengthening of the Renminbi and the rapidly increasing costs of manufacturing in China caused Mr Lim to reconsider his entire business model. He was putting great pressure on his sales team. He wanted them to internationalise the business and had given his sales managers very challenging targets which they were having great trouble meeting due to a general lack of international connections and partners. Mr Lim was getting worried because he urgently needed to increase his sales and profit margins but he was beginning to feel that this was not possible?

Basel E-Business Solutions provided Mr Lim with the perfect answer. We provided Mr Lim with the means to access the entire European consumer market place at a cost of less than the salary of one European based sales manager and what’s more:  

He could now sell direct to European customers

He didn’t have to buy or rent office space

He didn’t have to employ any staff or even a sales force

He didn’t have to complete any French, German, British, Spanish or Italian government forms or tax returns

And he didn’t have to pay any European companies or income taxes

All this without having to disclose his name or any of his activities to his existing European wholesale clients.

Doing business in Europe has always been complicated and very expensive. There is usually lots of bureaucracy and form filling in lots of different languages. With the advent of the internet everything has changed dramatically. With the help of Basel E-Business Solutions Mr Lim established a company on the island of Jersey and that company hosted a website properly focused upon his European client base. All Mr Lim had to do was to ship his products to major European post offices (such as Swiss Post, Jersey Post and Luxembourg post) and the rest was done for him. Mr Lim’s specialists could thus focus entirely upon the skills that they had always had – marketing and branding - but even here, when Mr Lim required the expert help and advice he needed in Europe, Basel eBusiness had the contacts to make sure that his business was always at the cutting edge of everything he wanted to do.  

Jersey has a distinctive place in Europe. It is not part of the European Union but it has special trading rights with the European Union. If a Jersey company is properly managed and controlled in Jersey (by directors that Basel E-Business Solutions will provide) then there is no Jersey tax to pay. Nor is there any corporation or income taxes to pay in any of the European Union countries in which his customers live. Profits can thus be sent back to China without having suffered any European corporate or income taxes whatsoever. To make all of this even more attractive, the ownership of the Jersey company (Mr Lim owns 100% of the shares) is kept entirely confidential by the Jersey authorities and thus none of his existing European based wholesalers will know that they are now in direct competition with him.  

There is another massive advantage. All low value goods sent into Britain, valued at under £15 are free from value added tax (currently fixed at 20%). Into the rest of Europe the limit is EUR22 after which his customers would have to pay value added tax. His products fall into this low value bracket and thus he is able to sell his products at extremely competitively prices because:

a)    His customers pay no value added tax

b)    His business pays no European corporate or income taxes tax

c)    His customers do not have to pay for the mark up added by the retailers that they usually buy from and

d)    Most importantly, his competitive pricing has driven a significant number of new customers to his website and his sales are growing very rapidly indeed, even for his most expensive goods.  

With all of these advantages he can either sell his products extremely cheaply OR he can make considerably more money in terms of profit.

Mr Lim was also delighted to learn that, as Jersey falls within the European VISA and MasterCard acquiring zones, his Jersey Company was able to take advantage of extremely competitive merchant credit card pricing. MasterCard and VISA charges from as little as 1.50% and debit card charges from 15p a transaction. His gateway charges were also low at 6p per transaction and his monthly processing charges fell to below £20. All this served to make his decision to establish his company in Jersey even more attractive.

There is yet another benefit for Mr Lim. By owning such a profitable company in Jersey, he is growing his overseas assets and is beginning to accumulate wealth overseas that can be used to grow his other international businesses and his international asset portfolio (including a house in London). His children are now taking a great interest in the business and are helping him build his European marketing strategies.  This has been a win win strategy for all concerned.

Higham & Higham Ltd - Distributor of inkjets and cartridges

Thursday, April 01, 2010

Basel Trust helped us through the complex web that is setting up an e-commerce enterprise in the Channel Islands. Mark Higham, Managing Director and founder

www.cartridgepeople.com

emaxUSB Ltd - Distributor of memory products

Thursday, April 01, 2010

The only resource you will ever need. We were simply amazed at how easy the formation of an offshore structure was with the help of Basel. Aaron Blackmore, Founder

www.emaxstore.co.uk

Daysoft Limited - Daily-disposable contact lenses

Thursday, April 01, 2010

From the very first phone call to the Basel team I knew I was in touch with people who knew what they were talking about. Informed professionals who smoothed the way forward for us to a very successful offshore business launch in Jersey. My initial impressions were borne out by the ongoing support from Basel, Jersey, as the business has experienced rapid growth from the outset. Interested beyond the needs of business, helpful friends. Dr Ron Hamilton, Founder

Ron Hamilton invented daily-disposable contact lenses and built the first laboratory in the world dedicated to making them. When Bausch & Lomb (B&L), the biggest eye-care company in the world, approached him for distribution rights he offered to sell them the company and the patent rights.

Following his 5-year non-compete agreement he was very disappointed that the price of daily-disposables made by B&L, CIBA, J&J and CooperVision remained so high that many contact lenses wearers were still selecting lenses that need daily cleaning. Aware that cleaning soft contact lenses often results in discomfort, eye-infections and allergic reactions he decided to re-enter the market with an affordable, high-specification daily-disposable contact lens capable of replacing other brands. He named the lenses 'daysoft' with the promise to 'Switch & Save'.

Daysoft daily disposable contact lenses are now sold around the world at prices unbeatable by the competition. Prescription Logistics Limited was incorporated in Jersey on 3 August 2007 using the services of Basel eBusiness Limited to facilitate UK and mainland European sales. It operates, under licence and the website has seen a growth in monthly sales of over 300% since the first months trading and a 100% increase in turnover from the years 2008 to 2009.

www.daysoftcontactlenses.com