Best Jurisdiction for Online Business

[Aerodave]

Hello,

I am starting an online business with a partner, we are not selling goods but rather the use of some premium services of our webpage designed primarily for individuals. What would be the best jurisdiction to incorporate considering I am Maletese resident not domiciled and my partner is Spanish citizen and resident. The idea is to pay myself outside Malta so I don't have to pay taxes here and to also try to optimize the taxation of my partner in Spain probably with capital distributions by way of dividends.

I believe BVI may be a good option due to no corporate tax, no VAT, no reporting etc, is this correct? Moving to the banking I have seen in this forum Bank of Asia as an option, is this correct as well and can the bank account be opened remotely? As alternative would TransferWise allow me to open a bank account to receive payment from our clients.

If none of the above makes any sense to you which may perfectly be the case as I am a total newby - what would be your recommendation to structure the whole thing.

Thanks in advance,

Dave

 

[Mr Gus]

If you are a resident in Malta the company will be deemed tax resident by Malta. Also all these offshore companies are very very hard to get a bank account for, and you will be probably left with the shady ones.

Why not just setup a Maltese company? It's only taxed at 5%. Why do you want to create so much hassle for yourself just to evade 5% in tax?

 

[Aerodave]

If you are a resident in Malta the company will be deemed tax resident by Malta. Also all these offshore companies are very very hard to get a bank account for, and you will be probably left with the shady ones.

Why not just setup a Maltese company? It's only taxed at 5%. Why do you want to create so much hassle for yourself just to evade 5% in tax?

As far as I know the 5% only applies if you have a holding company otherwise is 35%

 

[Mr Gus]

As far as I know the 5% only applies if you have a holding company otherwise is 35%

Yup

 

[Aerodave]

Yup

Ok I don't think that's very easy plus I won't have the benefit of paying myself ouside Malta free of tax, I can have my partner operating the company on paper instead of me.

 

[uplana]

What about a non dom Cyprus company which has no tax to pay, you set it up with a real small office, somewhere offshore and don't pay tax. If setup correct you can even get a bank account for it.

 

[cangarooo]

Your setup (in the way you described it) is valid to apply as Non-Resident UK with zero corporate tax, no VAT, no reporting etc

 

[Marios]

Hello,

I am starting an online business with a partner, we are not selling goods but rather the use of some premium services of our webpage designed primarily for individuals. What would be the best jurisdiction to incorporate considering I am Maletese resident not domiciled and my partner is Spanish citizen and resident. The idea is to pay myself outside Malta so I don't have to pay taxes here and to also try to optimize the taxation of my partner in Spain probably with capital distributions by way of dividends.

I believe BVI may be a good option due to no corporate tax, no VAT, no reporting etc, is this correct? Moving to the banking I have seen in this forum Bank of Asia as an option, is this correct as well and can the bank account be opened remotely? As alternative would TransferWise allow me to open a bank account to receive payment from our clients.

If none of the above makes any sense to you which may perfectly be the case as I am a total newby - what would be your recommendation to structure the whole thing.

Thanks in advance,

Dave

yes, banking must be considered when deciding to incorporate an offshore entity.