I think it would be great if we can have a list of the price everyone pays annually for their structures. You can also answer for other countries if you know a lot about the country but you don't have a company there yourself.
Why? Often times the the tax rate and price of incorporation is compared. However that cost is minimal and not the only cost when having and operating an international structure from my point of view (as a noob). Today the price of having and building real economic substance is crucial for tax planning. It also wouldn't make sense to have a zero tax company in a jurisdiction like UAE with 2 employees. If the cost of the maintenance and substance outnumbers the added tax benefits you can get.
Goal: to know the cost of the maintenance and substance costs for structures that would actually work if they are tested by your tax authorities.
This is the price I calculated for Bulgaria:
Business Activity: Customer support
Tax: 10% Corporate
Shared Office: €150 a month
1 employee average salary cost: 800 monthly
Company renewal and other small extras cost: 80 monthly
Accounting and auditing: 100 monthly
Yearly cost with 1 employee €13.600
Yearly cost with 2 employees €23.200
In case someone is interested in opening a company in my highly taxed country, Belgium:
Business Activity: B2B services
Tax: 25% Corporate
Shared Office: €400 a month
1 employee average salary cost: 3.000 monthly
Company renewal and other small extras cost: 100 monthly
Accounting and auditing: 200-400 monthly
Yearly cost with 1 employee €45.600
Yearly cost with 2 employees €81.600
Some businesses will require more substance some less and others won’t. Please don't forget to add the business activity and why it's so high/low.
You say for example:
- I only have a BVI company with no employees cause Panama where I'm resident couldn't care less.
- I have 15 employees in Labuan because it's logical for our business to have them there: cheap labour and low tax
Copy/Paste this and fill it in for your case:
Country:
Business Activity:
Tax:
(Shared / Virtual) Office:
1 employee average salary cost (if any):
Company renewal and other small extras cost:
Accounting and auditing:
Why this structure would stick if tested:
Yearly cost with 1 employee:
Yearly cost with 2 employees:
If we can get a lot of answers, I'm fine with putting it in a Google Sheet for everyone to compare.
Why? Often times the the tax rate and price of incorporation is compared. However that cost is minimal and not the only cost when having and operating an international structure from my point of view (as a noob). Today the price of having and building real economic substance is crucial for tax planning. It also wouldn't make sense to have a zero tax company in a jurisdiction like UAE with 2 employees. If the cost of the maintenance and substance outnumbers the added tax benefits you can get.
Goal: to know the cost of the maintenance and substance costs for structures that would actually work if they are tested by your tax authorities.
This is the price I calculated for Bulgaria:
Business Activity: Customer support
Tax: 10% Corporate
Shared Office: €150 a month
1 employee average salary cost: 800 monthly
Company renewal and other small extras cost: 80 monthly
Accounting and auditing: 100 monthly
Yearly cost with 1 employee €13.600
Yearly cost with 2 employees €23.200
In case someone is interested in opening a company in my highly taxed country, Belgium:
Business Activity: B2B services
Tax: 25% Corporate
Shared Office: €400 a month
1 employee average salary cost: 3.000 monthly
Company renewal and other small extras cost: 100 monthly
Accounting and auditing: 200-400 monthly
Yearly cost with 1 employee €45.600
Yearly cost with 2 employees €81.600
Some businesses will require more substance some less and others won’t. Please don't forget to add the business activity and why it's so high/low.
You say for example:
- I only have a BVI company with no employees cause Panama where I'm resident couldn't care less.
- I have 15 employees in Labuan because it's logical for our business to have them there: cheap labour and low tax
Copy/Paste this and fill it in for your case:
Country:
Business Activity:
Tax:
(Shared / Virtual) Office:
1 employee average salary cost (if any):
Company renewal and other small extras cost:
Accounting and auditing:
Why this structure would stick if tested:
Yearly cost with 1 employee:
Yearly cost with 2 employees:
If we can get a lot of answers, I'm fine with putting it in a Google Sheet for everyone to compare.
