This article introduces and explains how to open a corporate account with overseas FX broker HFM (HotForex), the procedure, necessary documents, and tax savings. Most HF Markets accounts are for individuals. However, it is possible to open a corporate account with HF Markets. However, unlike opening an individual account, it takes a lot of effort and requires the preparation of documents.
Account opening method and procedure
In fact, the method and procedure for opening a corporate account is no different from the procedure for opening an individual account. Most of the steps are exactly the same, only the operating method is slightly different. Overseas FX brokers such as exness, axiory, fbs, traderstrust, milton, bigboss, easymarkets, and xm have high leverage and the content on their official websites is also extensive. In order to be validated, you will need to pass a document screening process. Please refer to the article below. Once you have successfully logged in, a password will be issued.
High maximum leverage
The maximum leverage is 2000x, allowing for quite high leverage trades. There are no execution rejections, and scalping and automatic trading EA functions are also permitted. It is also attractive that various platforms such as MT4 and MT5 are offered. Transaction history can be downloaded for tax saving measures.
Perfect security measures
It is important to ensure that security measures are in place, rather than relying on a family member or other agent to trade on your behalf.You can only trade if you create a profile, create a photo, and verify your documents (My Number Card or Passport) to be authenticated and approved. It is solid in terms of safety and reliability. Password settings are also managed securely using lowercase and uppercase letters.
Full of bonuses and campaigns
The latest bonuses, campaigns, and points are quite substantial. Since it has a cushion function, you can trade the margin with just a bonus. Furthermore, a loss cut level is also set, and a zero cut rule will be applied when the balance is exhausted. It is also possible to incorporate and create a corporate account.
Procedures different from opening a personal account
The difference from the procedure for opening an individual account is that in the case of a corporation, you need to select the corporation on the tab in advance. When you click below, the following screen will appear. Click “Open Account”. The disadvantage is that there are many procedures to upload the certificates of submitted documents.
The following screen will be displayed, so please select “Corporation”. This is the only point to watch out for. Be careful not to select “Individual”. The rest of the steps are the same as for individuals.
Documents to be submitted
The documents to be submitted are decisively different from opening a personal account. In the case of a personal account, it was OK only to submit ID and address confirmation documents. However, a corporate account cannot be opened by itself.
certified copy of register
A certified copy of the company register is an absolutely necessary document for opening an account. This document will be issued when you go to the Legal Affairs Bureau.
articles of incorporation
You must also file the articles of incorporation of the company. This is also a required document to be submitted, and if there is no articles of incorporation, it is necessary to go to the Legal Affairs Bureau and apply for inspection, or go to the notary public office and apply for a certified copy.
Shareholder list
You will need a list of shareholder registers. This document should be prepared using Word or Excel. However, documents must be submitted with the seals or signatures of all shareholders.
Identity verification documents of officers
A corporate account will also require identification of the representative or officer. Not only representatives, but all executive level documents will be required.
Officer address verification documents
A corporate account will also require proof of address for the representative or officer. Not only representatives, but all executive level documents will be required.
Corporate account features
The characteristics of corporate accounts are the same as personal accounts in terms of trading conditions, but there is a big difference in tax measures. Even if you open a corporate account, you can receive a large number of bonuses compared to individuals. There is no difference in information such as spreads depending on the type. At the very least, those who want to trade FX under the name of a corporate business can do so by applying on the page. However, documents are required and national taxes etc. are charged.
terms of trade
For corporate accounts, the terms of trades are exactly the same as for personal accounts. Since the terms are the same, you may not feel much benefit. HFM is not authorized by the Financial Services Agency, but there are many users who have corporate accounts. You establish the company with yourself as the director. There are no restrictions on withdrawals and other matters. Service fees and positions are the same as for individuals. This account type is also implemented by other brokers in the industry. Taxes are levied in the country where the representative resides.
Tax measures
Money earned through finance in a personal account is basically considered miscellaneous income, and there is a risk that the tax rate will increase. However, by creating a corporate account, the tax rate will be lower, loss offset and loss carryover will be possible, and the range of expenses that can be claimed will increase. Please note that corporate tax will be levied on the representative, and resident tax will also be levied, so please check the latest tax system when starting a corporation.
Scope of expenses
Corporate accounts have a much wider range of expenses. In the case of a corporate account, entertainment expenses and business trip expenses will be included in addition to expenses. Retirement allowances, life insurance premiums, business trip expenses, etc. can be recorded as expenses that cannot be recorded in personal accounts.
profit and loss
If you have a corporate account, you can combine other income such as real estate income and business income with profit and loss. The range of profit and loss that can be aggregated in a personal account is only the profit and loss of miscellaneous income such as profit and loss and affiliate income.
loss carry forward
Individuals cannot carry forward losses. However, corporate accounts can carry forward losses for up to 10 years. If there is a loss, it will be a great advantage because it can be offset with the profit in the remaining 10 years.
Pay taxes even if you’re in the deficit
Individuals are not taxed if they do not make a profit. Corporations are required to pay corporate inhabitant tax even if they have a loss for the year. Furthermore, most corporations hire tax accountants, so they also have to pay the accountant’s fees. If you do not have the knowledge, you will be subject to regulations and it will be troublesome. There are several other taxes such as income tax and business tax, so it is important to be aware of them.
financial statements
If you open a corporate account, you will need to declare your financial statements. This is more complicated than filing an individual tax return, so many companies hire a tax accountant. Corporations may also be subject to tax audits once every five years. Depending on the region, groups may be subject to fairly strict audits. It can be a hassle if you receive a warning from the National Tax Agency. Whether you are a limited liability company or a joint-stock company, you should declare your amounts properly. It can be a hassle if your customers notice you.
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