Best jurisdiction for EU individual to register software company?

[DavidS]

Need to register company for software programming for 1 person. Legitimate business.

Need:
1) Preferably good reputation jurisdiction (US?)

2) Relatively cheap upkeep

3) Can register company and open bank account remotely

4) Preferably minimum paperwork and minimum accounting.

What would be ideal setup?

 

[Don]

Need to register company for software programming for 1 person. Legitimate business.

Need:
1) Preferably good reputation jurisdiction (US?)

2) Relatively cheap upkeep

3) Can register company and open bank account remotely

4) Preferably minimum paperwork and minimum accounting.

What would be ideal setup?

Are you willing to relocate and establish your tax residency in the given country?

 

[Sols]

Sounds like US or UK. Good reputation, cheap, can be done remotely (not bank account but EMI or equivalent doable), and straight-forward paperwork.

Make sure you understand and research the tax implication of running a foreign company. You might need to do the same degree and type of bookkeeping as a local company, in order to comply with local tax laws. The hastily prepared accounting records most small US and UK companies do won't cut it in many EU jurisdictions.

 

[BrianTan]

If you also want an open and liberalized economy and a highly skilled and well-educated workforce, the UK might be a good option for you. It meets all the needs you mentioned.
Need:
1) Preferably good reputation jurisdiction => Yes
2) Relatively cheap upkeep => Quite yes
3) Can register company and open bank account remotely => Yes
4) Preferably minimum paperwork and minimum accounting => Yes

 

[DavidS]

Are you willing to relocate and establish your tax residency in the given country?

No

Also, there won't be physical presence there. It's just for an IT company.

 

[bizman]

Go with Romania Micro company, Cyprus or Malta that's where 99% in your situation setup their company

 

[TheCryptoAnt]

Depend on where you live tbh, have you considered if you country has CFC rules?

 

[DavidS]

Go with Romania Micro company, Cyprus or Malta that's where 99% in your situation setup their company

What is tx situation in Romania, how is company taxed?

Depend on where you live tbh, have you considered if you country has CFC rules?

What CFC rules are you referring to?

 

[Don]

What is tx situation in Romania, how is company taxed?


What CFC rules are you referring to?

The standard CIT rate is 16% for Romanian companies.

Micro-companies are subject to a mandatory revenue tax rate in lieu of the standard CIT.
The tax rates used for micro-company income tax are:

• 1% for micro-companies with one or more employees.
• 3% for micro-companies with no employees.

The current rules are about to change from 1 January 2023 accordingly:

A Romanian legal entity can opt for the application of micro-company revenue tax if it cumulatively meets the following conditions as at 31 December of the previous year:

o The revenues derived did not exceed the RON equivalent of EUR 500,000 (modified condition - the threshold is currently EUR 1 mil);

o The share capital is owned by persons other than the state and administrative-territorial units - (unmodified condition);

o It is not under dissolution, followed by liquidation(unmodified condition);

o At least 80% of its total revenues are generated from other than consulting and management activities (newly introduced condition);

o Has at least one employee (newly introduced condition);

o Has associates/shareholders that hold more than 25% of the value/number of participation titles or voting rights in no more than three Romanian micro-companies (newly introduced condition).

The micro-company regime cannot be applied by Romanian legal entities conducting activities in: banking; insurance and reinsurance, of the capital market, including intermediation activities in those fields; gambling; exploration, development or exploitation of oil and natural gas deposits.