MEXC is one of the top cryptocurrency exchanges in the world. Since there are many users, various users are active. Most of them are individuals, but there should be some traders who are active as corporations. I will explain how to open a corporate account.
- MEXC Global Opening a corporate account
- MEXC Global Corporate account features
- MEXC Global Advantages of corporate accounts
- MEXC Global Disadvantages of corporate accounts
MEXC Global Opening a corporate account
Most of the procedures for opening a corporate account are the same as those for opening a personal account. Please refer to the article below to get started. Please be assured that the method of trading and the setting method will not change between the corporate account and the personal account. However, be careful when using the following settings. In particular, the amount of documents to be submitted is much larger than that of an individual, so be careful.
Registered email address or phone number
It is better to use a corporate email address and phone number to register. Despite being a corporation, free email addresses such as @gmail.com tend to be mistrusted. Try to use what your company provides.
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. You will need to confirm your date of birth as an ID, and you can use a driver’s license, My Number Card, or passport. If you do not submit the latest information, your application will be rejected.
And there are far more documents to submit, such as identification cards, than in the case of individuals. The following are the documents to be submitted, so please prepare and upload them all. In addition, unclear images often result in NG, so please make images that are clearly reflected.
- 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
Corporate losses can be carried forward. It has the advantage of being easier to save tax than a personal account. There is also the merit of being able to combine profit and loss with other businesses when becoming a corporation.
When dealing with individuals, there is a disadvantage that the range of expenses recognized as expenses is narrow. However, when incorporated, the range of expenses that can be covered as expenses is relatively wide, so it is easier to reduce taxes as a result.
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.
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.
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
First of all, what are the benefits of opening a business account instead of an individual? There are following points.
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.