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Question Best country to incorporate in for Dropshipping / Ecommerce

akao

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May 7, 2020
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Looking to set up a company, in order to test some dropshipping and ecommerce stores. Will only need the company to get access to payment processors (paypal, stripe, 2co, shopify payments, etc).

Will be selling mostly to the US so we're not looking for US company (even tho it's cheap) - as tax is huge (30% if i understand correctly, from all revenue sourced in the US).
I don't mind paying tax if it's something around 10-15% and if the company formation is cheap (which is one of our requirements, as we don't want to spend too much on a company which we don't know if we'll use).
Second (and probably the most important) requirement - no or very little accounting / reporting / auditing needed. We found several jurisdictions in europe with low tax, low cost to incorporate - but the paperwork / bureaucracy is absolutely horrible (reporting every 3 months, VAT - even if you don't sell to that country, inventory entries and exits, etc - at one point we had 100-200 orders combined per day, and we can't afford to deal with all that paperwork).

So cheap to form, low or no paperwork, little taxation (comfortable with 10-15%, maybe even 20% - we'll switch to a more friendly tax country if this has success)
 
How does that work? Whom would he have to prove that he stays in Panama as a resydent and thus doesn't have to pay taxes for his UK LLP? To the tax authorities of the UK? Wouldn't UK still oblige him to still pay 19% of taxes?

What if I'm not a UK resident and have never even been there, and I have residency outside of the UK, in some territorial-based taxation country, and I also own a UK Ltd. Even in this case, you say, I'd only have to pay a tax for my UK Ltd according to the tax rate of a country where I'm resydent at? Let's say, 10%. And not 19% which is the tax of UK Ltd?

Wait, LLP... For LTD it'd be different - tax 19% anyway?
 
Last edited:
You are confusing UK LTD with UK LLP.

LLP is limited liability partnership, taxes are paid where partners are resident.

Territorial taxation countries will not tax foreign sourced income.
 
Because UK and their overseas territories are the freaking biggest tax haven in the world, you should stop what you are doing and sing GOD SAVE THE QUEEN immediately!
How could he create an LLP if it can't be formed by 1 physical person, as 2 minimum are required? Wouldn't he have to give a birth to someone first, and then wait for 18 year? Would there still be UK LLP-s in 18 years, do you know?
 
Then the process would be: create a UK LTD, make it dormant either right away or after a little while, then create an LLP where the 2nd partner is that dormant LTD and that's it, right?

And since an LLP is at least as good tax-wise as an Ltd, but, most often it'll have lower taxes, or 0, depending on person's resydential location, what's the catch? Why do most people not go with an LLP instead of LTD?
 
Ability to use merchant payment platforms such as Paypal, Stripe
Guys, could you help me find Mauritius in this list from Stripe website? I can't find it.

Oh yes i can't find it because Stripe is not available there!

EnwzIx.jpg
 
Why do most people not go with an LLP instead of LTD?
Well, you discovered the existence of the LLP less than 24 hour ago so the first answer would be simply because people don't know what they don't know.

Opening a bank account for a LLP could be a problem if partners are not UK residents but luckily there are a lot of options like TransferWise, Tide, Fire.
 
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