Advice for offshore business + banking in 2024/2025

[Fries n Mayo]

Amigos!

I am a long time member here, and compared to my financial situation 3-4 years ago (about which I had posted here, if you're curious) I'm in a much better shape now. I want to launch a business, and here I am again to ask you for some advice. I have in mind a business that operates through the following companies:
- COMPANY-A: SaaS Software sales
- COMPANY-B: Referral Marketing
- COMPANY-C: Mass Mailing Marketing

How the business works: COMPANY-A sells software to the world, buying referral marketing services from COMPANY-B. COMPANY-B in turn buys mass mailing campaigns from COMPANY-C. In other words, schematized:
- Where do companies sell to:
- COMPANY-A sells to Europe, UK, USA, Canada (in the first 9 months) + Australia, New Zealand, Taiwan, Singapore (afterwards).
- COMPANY-B sells to COMPANY-A.
- COMPANY-C sells to COMPANY-B.
- Where do companies buy from:
- COMPANY-A buys from COMPANY-B.
- COMPANY-B buys from COMPANY-C.

I have these jurisdiction requirements:
- COMPANY-A: minimization of income & dividends tax in the selected countries.
- COMPANY-B: minimization of income & dividends tax (0% if possible) + no GDPR compliance required (or low GDPR infringement penalties).
- COMPANY-C: minimization of income & dividends tax (0% if possible) + no GDPR compliance required (or low GDPR infringement penalties).

My estimated annual turnover is:
- COMPANY-A: 1.5M / year.
- COMPANY-B: 150k-250k / year.
- COMPANY-C: 75k-100k / year.
I foresee a growth rate is: 15% / year for the next 3 years.

My requirements for banking & payment processing are:
- COMPANY-A:
- must have: accept payments from the internet (from the countries).
- must have: banking operativity in all currencies.
- nice to have: low forex fees.
- COMPANY-B:
- must have: banking with COMPANY-A in USD.
- nice to have: crypto.
- COMPANY-C
- must have: banking with COMPANY-B in USD.
- nice to have: crypto.

I'd like to do all the paperwork remotely.
Any advices for Fries n' Mayo?

Thanks!

 

[Shories]

Amigos!

I am a long time member here, and compared to my financial situation 3-4 years ago (about which I had posted here, if you're curious) I'm in a much better shape now. I want to launch a business, and here I am again to ask you for some advice. I have in mind a business that operates through the following companies:
- COMPANY-A: SaaS Software sales
- COMPANY-B: Referral Marketing
- COMPANY-C: Mass Mailing Marketing

How the business works: COMPANY-A sells software to the world, buying referral marketing services from COMPANY-B. COMPANY-B in turn buys mass mailing campaigns from COMPANY-C. In other words, schematized:
- Where do companies sell to:
- COMPANY-A sells to Europe, UK, USA, Canada (in the first 9 months) + Australia, New Zealand, Taiwan, Singapore (afterwards).
- COMPANY-B sells to COMPANY-A.
- COMPANY-C sells to COMPANY-B.
- Where do companies buy from:
- COMPANY-A buys from COMPANY-B.
- COMPANY-B buys from COMPANY-C.

I have these jurisdiction requirements:
- COMPANY-A: minimization of income & dividends tax in the selected countries.
- COMPANY-B: minimization of income & dividends tax (0% if possible) + no GDPR compliance required (or low GDPR infringement penalties).
- COMPANY-C: minimization of income & dividends tax (0% if possible) + no GDPR compliance required (or low GDPR infringement penalties).

My estimated annual turnover is:
- COMPANY-A: 1.5M / year.
- COMPANY-B: 150k-250k / year.
- COMPANY-C: 75k-100k / year.
I foresee a growth rate is: 15% / year for the next 3 years.

My requirements for banking & payment processing are:
- COMPANY-A:
- must have: accept payments from the internet (from the countries).
- must have: banking operativity in all currencies.
- nice to have: low forex fees.
- COMPANY-B:
- must have: banking with COMPANY-A in USD.
- nice to have: crypto.
- COMPANY-C
- must have: banking with COMPANY-B in USD.
- nice to have: crypto.

I'd like to do all the paperwork remotely.
Any advices for Fries n' Mayo?

Thanks!

What about:

COMPANY-A:
- Estonia
- Stripe (or any alternative that won't bother you) for payments
- Multi-currency accounts
- EU presence for credibility
- Banking: Open all possible EMIs / LHV Estonia

COMPANY-B
- UAE
- Privacy-focused
- Crypto capabilities
- Banking: Much stuff, I'll name quick ones: RAK Bank Corporate / ADCB / Emirates NBD

COMPANY-C
- Marshall Islands
- Maximum privacy
- No GDPR concerns
- Operational freedom
- Banking: United Pacific Bank / DBS Singapore (with proper structure)

You could even think about Singapore, Belize and some others, there are many ways to structure it. But all at 0% tax can be very complex.

I would do crypto honestly, move funds with crypto between your companies, then use Estonia to convert to FIAT.

This answer is just brainstorming to give you ideas; it was not made by our consultants.

 

[EliasIT]

- COMPANY-A: SaaS Software sales
- COMPANY-B: Referral Marketing
- COMPANY-C: Mass Mailing Marketing

A - You have Stripe, Braintree, Adyen and FastSpring
B - You usually use the payment processor of theirs.
C - Spamming business is tricky, cloaked Stripe and PayPal can work.

For company, it doesn't matter you need to look into what your requirements are, how it fits to where you are resident in regards to taxes.

For banking, Zen, Wise, Revolut & co will do it.

 

[Fries n Mayo]

@Shories thanks a lot. I'd like to ask:
A: Selling to the world, isn't Estonia heavy on taxation on income & dividends vs. other EU jurisdictions?
B: Despite my business idea is entirely legal/legit I would not go for UAE. Any alternatives?
C: What does it mean "proper structure", do I need multiple legal entities in Marshall?

 

[EliasIT]

A: Selling to the world, isn't Estonia heavy on taxation on income & dividends vs. other EU jurisdictions?

maybe a good question for @Don

 

[Don]

@Shories thanks a lot. I'd like to ask:
A: Selling to the world, isn't Estonia heavy on taxation on income & dividends vs. other EU jurisdictions?

20% tax on distributed profits could indeed be higher effective tax than some alternatives.
Estonia is usually used as a front structure combined with an offshore entity, potentially resulting in zero tax.
Also its easy/cheap option for converting crypto to fiat tax free

B: Despite my business idea is entirely legal/legit I would not go for UAE. Any alternatives?

Malta fiscal unit 5% total effective tax
Bulgaria 10-15% total tax
Cyprus ~15% total tax
Georgia IT company 5% effective tax

 

[Despina]

Also its easy/cheap option for converting crypto to fiat tax free

Can you tell more?

 

[Silverlake]

COMPANY-C
- Marshall Islands
- Maximum privacy
- No GDPR concerns
- Operational freedom
- Banking: United Pacific Bank / DBS Singapore (with proper structure)

You could even think about Singapore, Belize and some others, there are many ways to structure it. But all at 0% tax can be very complex.

Just out of curiosity, have you managed to open an account with DBS (Singapore) for a Marshall Islands company? Did you go directly with them or get introduced to them by someone?