Banking + card processing for b2b software

[cionide]

Hi Guys,
Shortly after the New Year I will be setting up an LLC in St. Vincent/Grenadines and will need banking, preferably in a non-sketchy bank. I plan to move the operations of my existing B2B software business to this LLC. I have EU tax residence and EU citizenship. I also ideally would need something that provides payment processing for major credit cards. I'm also not married to SVG for the jurisdiction of the LLC, just seemed like a good place as it's not on list of EU tax havens and doesn't have substance requirements for intellectual property..

I know there is Paxum bank that offers both of these but I emailed a few days ago and no response.

Any recommendations?

 

[latindev]

Good luck, you will need it

 

[cionide]

May I ask why? Is the issue the jurisdiction or the fact that it's software sales? I've used stripe for years, before that a local biller and before that paypal with no issues. I had maybe 3 or 4 chargebacks in the last 10 years.

 

[oldtimer2]

watching . surely you want a jurisdiction with good DTA's etc yes?

 

[cionide]

watching . surely you want a jurisdiction with good DTA's etc yes?

I am open to any jurisdiction really. Regarding DTA I was pretty much just hoping to have an LLC that's it's own entity and pay out dividends or invoice it from my sole proprietorship in EU). SVG just seemed like a good match but i'm new to this.

Really the criteria is:
- Does not require economic substance for IP business, or will not define my operations as an IP business (developing custom software + licensing existing software). I know for instance developing custom software would not be an IP business in Jersey for instance, and I could use Stripe and get normal banking but licensing software would be which is problematic...
- Somewhere I can get reasonable banking and normal credit card processing

I'm not trying to hide my income or avoid reporting anything, I'm trying to simply position my business outside of my home country as sort of a "buffer" company so to speak

 

[Clearsky Network]

Its almost impossible to get a good PSP with SVG company.
For banking go for EMI like Wallter, they are open to SVG companies.

 

[cionide]

Its almost impossible to get a good PSP with SVG company.
For banking go for EMI like Wallter, they are open to SVG companies.

Can you recommend a jurisdiction that would be easier to get a PSP with?

 

[Clearsky Network]

Can you recommend a jurisdiction that would be easier to get a PSP with?

EU or UK jurisdiction should work assuming the business is legit.

 

[koohl]

Put a UK LTD in front of the setup for the payment processing only. Make it a subsidiary for the SG company once all is completed with the bank and the payment processor for the UK LTD. Problem solved. Easy and cheap to do.

Inside mentor group gold you can even find ways to anonymize the uk ltd if that is an requirement.

 

[cionide]

Put a UK LTD in front of the setup for the payment processing only. Make it a subsidiary for the SG company once all is completed with the bank and the payment processor for the UK LTD. Problem solved. Easy and cheap to do.

Inside mentor group gold you can even find ways to anonymize the uk ltd if that is an requirement.

That's actually a damned good idea. Thanks!

 

[Onassis]

SVG is one of the worst jurisdictions you can set up a company in and the company will be reported to your local tax authorities anyway

 

[cionide]

SVG is one of the worst jurisdictions you can set up a company in and the company will be reported to your local tax authorities anyway

The reporting is not really a problem. It's perfectly legal here to own an offshore corporation, I just want a buffer LLC to protect myself from liability if a client does something messed up with my software. I think though that a solution here might be similar to what @koohl wrote but one with easier accounting - maybe a delaware or wyoming LLC, setup everything and then transfer everythign to some offshore?

While SVG might not be the best jurisdiction, i've been told I can only use the following without substance requirements whilst having no domestic taxes:

• Panama
• Nevis (both business corporation and LLC)
• St Vincent and the Grenadines (LLC only, business companies are subject to economic substance)
• Antigua and Barbuda (both IBCs and LLCs)
• Cook Islands (LLC only, international companies are subject to tax)
• Seychelles (as long as it is a standalone company and not part of a multinational group)
• Mauritius (authorized nonresident company only)

 

[Onassis]

It's perfectly legal here to own an offshore corporation

Owning is one thing, operating it from your home country is something else. Are you aware of the fact it will be tax resident in your country of residence?

I just want a buffer LLC to protect myself from liability if a client does something messed up with my software.

You don't necessarily need an offshore company for that, you just need to get a decent lawyer to draft a solid contract between your company and your clients.

Panama

Panama has substance requirements.