Canadian living in Cambodia. Need jurisdiction for e-commerce company (software) recommendations.

[dogprince]

Hi guys,

I'm Canadian. I live in Cambodia but travel to other countries frequently. I'm digital nomad. I'm not a Canadian tax resident because I have no residential ties to Canada.

I'm setting up a new business selling digital software online (all direct downloads) to a worldwide audience (but mainly Europe, the UK, and the US).

I'm wondering what the current best jurisdiction to set up is. I need a place that is professional and stable and doesn't change the rules every month. Ideally, it would have easy accounting standards and offer services in English.

Essentially, I just need a jurisdiction where I can process PayPal payments with minimal fuss. I don't even need a bank account. I just need PayPal.

Cambodia isn't ideal for this.

I plan to keep no money in the company; I take all profit as salary.

I'm thinking about the Estonia e-residence program and running my company through there.

But maybe there are better options than Estonia. I'd rather avoid the Eurozone as much as possible.

Do you have any ideas? 've been reading through the forums, but they're just a fog of often contradictory advice and opinions, often outdated. It's hard to make sense of anything.

I thought about Hong Kong, but I am not too wild about HK. Looking for something else. Perhaps the Middle East? UAE?

 

[JohnLocke]

@Don @CyprusLawyer101 @CyprusLaw - I believe some of them are able to help you with a setup in either Estonia or Cyprus or other good places for your business.

 

[Marketint]

Singapore or Hong Kong can be good options if you live in Asia.

I don’t know if your choose of jurisdiction matters for your clients. For some business it’s now hard to deal with Europe banks if you use for example a bvi.

Check out osome, sleek, statrys.

I avoid the eurozone at all cost. Maybe bvi is a option but I am not sure if you can onboard by PayPal with a bvi.

 

[Don]

Hi guys,

I'm Canadian. I live in Cambodia but travel to other countries frequently. I'm digital nomad. I'm not a Canadian tax resident because I have no residential ties to Canada.

I'm setting up a new business selling digital software online (all direct downloads) to a worldwide audience (but mainly Europe, the UK, and the US).

I'm wondering what the current best jurisdiction to set up is. I need a place that is professional and stable and doesn't change the rules every month. Ideally, it would have easy accounting standards and offer services in English.

Essentially, I just need a jurisdiction where I can process PayPal payments with minimal fuss. I don't even need a bank account. I just need PayPal.

Cambodia isn't ideal for this.

I plan to keep no money in the company; I take all profit as salary.

I'm thinking about the Estonia e-residence program and running my company through there.

But maybe there are better options than Estonia. I'd rather avoid the Eurozone as much as possible.

Do you have any ideas? 've been reading through the forums, but they're just a fog of often contradictory advice and opinions, often outdated. It's hard to make sense of anything.

I thought about Hong Kong, but I am not too wild about HK. Looking for something else. Perhaps the Middle East? UAE?

Do you have developed your own software?
It seems like a business model where you can make a lot of difference with how you set everything up.

 

[dogprince]

I make the software on my laptop along with some other programmers I hire. I sell the software via my own website. There's nothing physical. It's all digital.

And it's 100 percent legit software. We're not doing porn or anything grey area. It's normal everyday software.

Singapore or Hong Kong can be good options if you live in Asia.

I don’t know if your choose of jurisdiction matters for your clients. For some business it’s now hard to deal with Europe banks if you use for example a bvi.

Check out osome, sleek, statrys.

I avoid the eurozone at all cost. Maybe bvi is a option but I am not sure if you can onboard by PayPal with a bvi.

Jurisdiction means nothing to my customers.


Customers are ordinary people all over the world who download the software They wouldn't care where the company is located.

 

[daniels27]

@baltic7 what did you come up with? I think he does not need any economic substance. Maybe Singapore then if he is under the audit threshold? Otherwise Channel Islands? Or maybe BVI+US SMLLC?

There are always many opinions and they differ depending on preferences. Some want to avoid audits others need economic substance or the company managed elsewhere where they live.

Then the Cyprus gang and the UAE gang is pretty active on this forum, while there are no such sponsors from Singapore or Hong Kong.

 

[TheCryptoAnt]

I'm setting up a new business selling digital software online (all direct downloads) to a worldwide audience (but mainly Europe, the UK, and the US).

I'm wondering what the current best jurisdiction to set up is. I need a place that is professional and stable and doesn't change the rules every month. Ideally, it would have easy accounting standards and offer services in English.

Essentially, I just need a jurisdiction where I can process PayPal payments with minimal fuss. I don't even need a bank account. I just need PayPal.

A simple US LLC will work just fine for you.

I thought about Hong Kong, but I am not too wild about HK. Looking for something else. Perhaps the Middle East? UAE?

Too complicated and expensive really.

 

[dogprince]

A simple US LLC will work just fine for you.

-- The Problem is getting a US-based PayPal account. Getting the LLC is easy. However, getting the ITIN, etc., that PayPal wants can be problematic.

 

[daniels27]

A simple US LLC will work just fine for you.

-- The Problem is getting a US-based PayPal account. Getting the LLC is easy. However, getting the ITIN, etc., that PayPal wants can be problematic.

Even getting an SSN will be cheaper then paying one year incorporation agent elsewhere. ITIN is cheap. Really.

 

[Don]

I make the software on my laptop along with some other programmers I hire. I sell the software via my own website. There's nothing physical. It's all digital.

And it's 100 percent legit software. We're not doing porn or anything grey area. It's normal everyday software.


Jurisdiction means nothing to my customers.


Customers are ordinary people all over the world who download the software They wouldn't care where the company is located.

It's a digitally supplied service, and in 2024, you want to comply with VAT, especially in order to maintain payment processor accounts such as Paypal, which will report your turnovers to EU Cesop.

Central Electronic System of Payment information (CESOP)

Transmission and exchange of payment data to fight VAT fraud

taxation-customs.ec.europa.eu

If you have EU customers, using an entity based in the EU could be easier; e.g., Estonia could be a decent choice.

It would be sensible to establish a minimum of substance, like a local director, to facilitate access to banking and payment processing and reduce tax risks, especially if your personal tax situation might change sometime in the future.

A simple US LLC will work just fine for you.

-- The Problem is getting a US-based PayPal account. Getting the LLC is easy. However, getting the ITIN, etc., that PayPal wants can be problematic.

a US LLC would then need to register for IOSS in the EU or get VAT registrations in each country that it sells to.
The days of getting away with not paying VAT in the EU with a US LLC are pretty much done.
In that sense, an EU entity could be more straightforward to operate.
Also, an entity with actual tax residence could be better, especially if you happen to have any B2B sales as some jurisdictions would impose withholding taxes to payments done to US LLC-s which cant provide tax residence certificates.

Still US LLC has its merits, especially if you are successful with opening bank accounts in the US.

 

[TheCryptoAnt]

A simple US LLC will work just fine for you.

-- The Problem is getting a US-based PayPal account. Getting the LLC is easy. However, getting the ITIN, etc., that PayPal wants can be problematic.

Theres a bunch of CPAs in Fiverr that'll get it for you in a month-ish time (ITIN).

Even getting an SSN will be cheaper then paying one year incorporation agent elsewhere. ITIN is cheap. Really.

Indeed.

a US LLC would then need to register for IOSS in the EU or get VAT registrations in each country that it sells to.\

You could contract with a service that does all of this for you for a fee, if needed.

The days of getting away with not paying VAT in the EU with a US LLC are pretty much done.

They are pretty much not done in my experience.

 

[Don]

@TheCryptoAnt, have you opened some new bank accounts for US LLC lately? Mind sharing some insights?

 

[TheCryptoAnt]

@TheCryptoAnt, have you opened some new bank accounts for US LLC lately? Mind sharing some insights?

Not personally but Ive got a recommendation for you in my DMs

 

[Forester]

@TheCryptoAnt, have you opened some new bank accounts for US LLC lately? Mind sharing some insights?

Not personally but Ive got a recommendation for you in my DMs

@Don, @TheCryptoAnt : OK, friends; but do not go OT so much, please. Manage this privately or feel free to open another thread re: this (I might be able to add something 2 cents worth there )