MEXC is one of the virtual currency exchanges, and for first-time users, we will introduce and explain the points to note and required documents for opening a corporate account in an article. Since it has a large number of users, various users are active. Most traders will be individuals, but some may be operating as corporations. We will explain how to open a corporate account.
MEXC Global Opening a corporate account
Although opening a corporate account, most of the steps are almost the same as opening a personal account. Finally, approve with the authentication code. Click on the article on the page below to access it and get started. Please rest assured that the trading method and setting method will not change between corporate and personal accounts. However, there are some caveats when using the following settings. Please be especially careful as the amount of documents to be submitted will be much larger than if you were an individual. You can also trade on the app.
Registered email address or phone number
Even though the steps are almost the same as for individuals, it is easier to register new email addresses and phone numbers that are at the corporate level. Even though it is a corporation, free email addresses such as @gmail.com tend to be viewed with distrust because of the content. To get started, use what each company has prepared.
Steps after submission of ID
In the identity verification procedure, you will be asked to select whether you are an individual or a corporation under the ID field. Please select your legal entity from here. Your date of birth must be confirmed as your personal ID, and you can use a driver’s license, My Number Card number, or passport, but a photo screen is also required. If you do not submit the latest information, you will not be able to participate in the service and will be rejected.
In fact, there are far more documents to submit, such as identification documents, than in the case of an individual (3 types). The following documents are required to be submitted, so please prepare and upload them all. Also, please be sure to use a clear image, as unclear images will often be rejected by the administration and invalidated. It is preferable to prepare them in advance.
- Board Resolution Document
- Memorandum and Articles of Incorporation
- Certified copy of company register
- Copy of shareholder register
- Director list
- Identity documents for all directors, authorized agents, individuals controlling and supervising the company, and up to 25% of the ultimate beneficiaries
- Company structure, organizational chart
- Screenshot of company registration information published on a government site
Identity verification for corporations requires a large number of documents, so it may take 1 to 2 days. You can only do one type of corporate verification per account. You will receive an email when authentication is complete. Next, you can log in and perform futures trading, spot trading, etc.
MEXC Global Corporate account features
Unlike personal accounts, corporate accounts have the following characteristics: The basic functions are the same as for individuals, security is two-factor authentication, SMS settings are possible, password settings can be changed, and crypto assets can be purchased using coins such as BTC, XRP, and USDT. The leverage is 200x, and the corporate account functions are the same as Binance and Bybit.
loss carry forward
Corporations can carry forward losses. It has the advantage of being easier to take tax-saving measures than individual accounts. Another advantage of being a corporation is that you can combine profits and losses with other businesses. When you deposit or withdraw money, you are deemed to have agreed. You can also download and check your transaction history later. There are many benefits and campaigns, so there are many opportunities.
expenses
When trading as an individual, there is a disadvantage in that the range of expenses that can be recognized as expenses is narrow. However, if you incorporate, the range of expenses that can be expensed becomes relatively wide, which ultimately leads to tax savings. Be careful when you start. You can easily record expenses using a smartphone, etc.
difficult to use profits
When trading on a corporate account, it is necessary to ensure transparency of funds. Therefore, unlike individual transactions, the money in the account cannot be used freely. If you trade with a corporate account, you can’t get money freely according to your own convenience.
tax saving
Among the things that can be paid as a corporation are executive compensation. If you pay executive compensation to an executive who belongs to a corporation, you can pay less income tax than paying income tax by yourself. It will save tax.
Taxes even in the deficit
If you are a corporation, you pay taxes at the end of the accounting period. During this accounting period, corporate tax and corporate inhabitant tax are calculated and paid. Even if the profit and loss is a negative deficit, there is an obligation to pay corporate tax.
Advisory fee
Taxation becomes complicated when a company is incorporated, so in many cases, a social insurance labor consultant and a tax accountant are hired for consultation and tax payment processing. It is wise to leave the tax payment process alone because it is difficult to do it alone.
MEXC Global Advantages of corporate accounts
So, first of all, what are the advantages of creating a corporate account instead of an individual account? There are the following advantages. Like Binance, there is two-step authentication and you can use Google Authenticator, so there are no security issues. You can hold futures and spot products with peace of mind while tapping. We recommend it because there are limited discounts.
Losses can be carried forward for up to 10 years
When trading with a corporate account, losses can be carried forward for up to 10 years. The loss carry forward period for personal accounts is up to 3 years. Therefore, trading using a corporate account has a longer loss carryover period, making it easier to take tax-saving measures. When a company becomes a corporation, the taxable amount is determined by multiplying the profits obtained from transactions by a predetermined tax rate. However, if you have had a loss in the last 10 years, you are eligible for a loss deduction.
Expenses can be turned into necessary expenses
When dealing with individuals, there is a disadvantage that the range of expenses recognized as expenses is narrow. However, once you become a corporation, the range of expenses that can be expensed becomes relatively wider, which can lead to tax savings. Therefore, it can be used in a wide range of expenses, so it can be said that the merit is very large.
Combine profit and loss with other businesses
Incorporation allows you to combine profits and losses with other businesses. This is a great advantage for those looking to incorporate multiple businesses. Income earned from personal transactions is classified as miscellaneous income. Due to the nature of miscellaneous income, it cannot be combined with other income. If you incorporate it, you can calculate the profit by adding it to other businesses.
MEXC Global Disadvantages of corporate accounts
What are the disadvantages of opening a corporate account? There are following points.
There will be a cost
In order to establish a corporation, you must prepare a certain amount of money. The company registration procedure is necessary, which takes not only money but also time. We also need a certain amount of funds to apply to various institutions.
Unable to use profits freely
When trading on a corporate account, it is necessary to ensure transparency of funds. Therefore, even if you can make a profit, there is a disadvantage that you can not use it as you like as an individual. Please note that unlike individual transactions, you will not be able to use the money in your account freely.
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