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Which Jurisdiction is Best for an Internet Marketing Company?

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Offshore Agent
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Jun 14, 2015
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#1
I have been doing some research about offshore jurisdictions to incorporate an Internet Marketing Company coming up with the following list of jurisdictions, ordered, from what I think is best to worst:

1 - British Virgin Islands
2 - Cayman Islands
3 - Bahamas
4 - Belize
5 - St. Kitts & Nevis
6 - Hong Kong
7 - Cyprus
8 - Estonia
9 - Panama
10 - Seychelles
11 - Singapore
12 - Malta

Some of the factors taken into account to get that ordered are: currency, offshore tax rate, onshore tax rate, dividends tax, VAT / GST, Disclosure of Director/Shareholder, Reporting & Auditing, Directors/Shareholders, Secretary Services...

Each time I look for jurisdictions, I find a new one, so it's difficult to decide for one.

These are some of the requirements I am looking for:

- Ability to have a bank account & credit card in other jurisdiction (UK - Revolut - multi-currency)
- Ability to send and receive money via PayPal
- Ability to send and receive Cryptocurrencies
- Ability to receive money via payment processor (Stripe, 2Checkout etc.)
- Ability to hire employees from all over the world

I am looking for a jurisdiction that I don't need to go there in person to set up everything.

So, based on this schema, what is your recommendation for incorporation?
 
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#2
You will need to have Mister Tango for Crypto payments and any other account for normal payments. In order to get PayPal I would look at 2checkout and which jurisdiction they are able to support. Much easier than to find something that fits into PayPals compliancy.

From your list I think you will be best with BVI or Cayman but it depends on your budget and how much privacy you are looking for.
 
#3
It's not about jurisdictions alone. Your list narrows the countries

- Ability to have a bank account & credit card in other jurisdiction (UK - Revolut - multi-currency)​

Bank accounts is the most complicated. If you want Revolut you need to look at all countries Revolut is working in. Also to make it right you need Revolut Business if you open a company. So this restricts you to only EEA/EU area and maybe also the new countries like Singapore where Revolut is expanding slowly.

- Ability to send and receive money via PayPal
​
The same as with Revolut, you need to look at terms of PayPal...
PayPal Global - All countries and markets - PayPal

- Ability to send and receive Cryptocurrencies
​
Many countries (e.g.) do not restrict crypto currently (but this is changing currently in politics) but most banks have problems with Crypto. You need to find a bank/emi which works with crypto exchanges!

- Ability to receive money via payment processor (Stripe, 2Checkout etc.)
​
Stripe: EU, USA, Canada with exceptions (e.g. they do not work together directly with Cyprus banks)
2checkout: FAQ | Supported Countries, Currencies, Methods & Products | 2Checkout

- Ability to hire employees from all over the world
​
You mean REAL employees and not freelancers? Boy this is complicated and I would not even go this route. But when you need to do EU area is a good area for that.


From your list you need to ask other questions: How important is market access? Do you need EU/US market access (with all benefits, e.g. payment processors)? The more remote and exotic your jurisdiction the more costly maintenance and more complicated all your requirements get. If your company is e.g. in Belize or BVI the chance that a EU or US company refuses to work with you will get higher.
 
#4
bountymounty said:
You will need to have Mister Tango for Crypto payments and any other account for normal payments. In order to get PayPal I would look at 2checkout and which jurisdiction they are able to support. Much easier than to find something that fits into PayPals compliancy.

From your list I think you will be best with BVI or Cayman but it depends on your budget and how much privacy you are looking for.
Click to expand...

There are other more reputable banks that accept crypto than Mister Tango. Mister Tango does not inspire me confidence.

What would be the workaround with PayPal and 2Checkout? Not sure if I am understanding you correctly with that.

In the case of BVI or Caymans, PayPal is pretty much restricted. First one, only allows sending money via PayPal, not receiving. Second one, allows also receiving but can only withdraw money to a US Bank Account, which I have, but not sure if the US Government is going to ask me for that money, thinking it should be declared in US.
 
#5
therealmarv said:
It's not about jurisdictions alone. Your list narrows the countries

- Ability to have a bank account & credit card in other jurisdiction (UK - Revolut - multi-currency)​

Bank accounts is the most complicated. If you want Revolut you need to look at all countries Revolut is working in. Also to make it right you need Revolut Business if you open a company. So this restricts you to only EEA/EU area and maybe also the new countries like Singapore where Revolut is expanding slowly.

- Ability to send and receive money via PayPal
​
The same as with Revolut, you need to look at terms of PayPal...
PayPal Global - All countries and markets - PayPal

- Ability to send and receive Cryptocurrencies
​
Many countries (e.g.) do not restrict crypto currently (but this is changing currently in politics) but most banks have problems with Crypto. You need to find a bank/emi which works with crypto exchanges!

- Ability to receive money via payment processor (Stripe, 2Checkout etc.)
​
Stripe: EU, USA, Canada with exceptions (e.g. they do not work together directly with Cyprus banks)
2checkout: FAQ | Supported Countries, Currencies, Methods & Products | 2Checkout

- Ability to hire employees from all over the world
​
You mean REAL employees and not freelancers? Boy this is complicated and I would not even go this route. But when you need to do EU area is a good area for that.


From your list you need to ask other questions: How important is market access? Do you need EU/US market access (with all benefits, e.g. payment processors)? The more remote and exotic your jurisdiction the more costly maintenance and more complicated all your requirements get. If your company is e.g. in Belize or BVI the chance that a EU or US company refuses to work with you will get higher.
Click to expand...

Hey! First of all, thanks for the complete reply.

1. You are right, Revolut is only available in EEA and Switzerland right now, although they say that they are going to launch soon across the world. Will keep an eye on that. Meanwhile, I can operate with a Transferwise Borderless account.

2. Most of the countries in my list require a US Bank Account to withdraw funds. I do have US Bank Accounts, but they are personal ones, not business ones. Would it be a problem to withdraw the money there? Will the IRS ask me anything about that money?

3. You are right as well. For example, Transferwise Borderless does not support crypto transfers. However, I think there are always workarounds such as using a personal account to buy cryptocurrencies in the name of your company with a Bank Account that supports crypto transfers.

4. Stripe is only available in Hong Kong and Singapore out of that list. However, 2Checkout is available worldwide.

5. Yes, the idea is to start with freelancers (contract basis), but as the company grows, I would like to start hiring permanent employees. I don't see why this is complicated, could you expand more on that?

And again, you are right when talking about market access. It would be easier to do business with a company in Cyprus or Hong Kong than with a company in BVI.
 
#6
It seems you can narrow your list down very good on your own ;)

Yes, the idea is to start with freelancers (contract basis), but as the company grows, I would like to start hiring permanent employees. I don't see why this is complicated, could you expand more on that?​

When you hire real employees you have to deal a lot more with local laws especially in the EU. Example EU: In my mind are social insurances you need to pay, more complicated tax handling, employment protection etc. etc. you also need help from lawyers to set this all up. Makes of course total sense for a big company... just saying things will get a lot more complicated than only setting up a company alone and tax handling will change for you in this case.
 
#8
#9
Admin said:
It's always better to have a company behind your business rather than be personal responsible for your business.
Click to expand...
That is true to have dispersed liability in your business but if you are running a small business then you can not go for public limited company. You can go for maximum of private limited company and the liability in PLC will be almost on you.
 
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