DLS Dubai - Company Formation & Bank Account
Aston & Williams Offshore Company, Trust and Bank
Turner Little - Company Formation Agents
Gift Card Payment gateway

EU LTD/Bank Account Advice

CALL US ON +971 50 4467827 - TO SETUP YOUR NON-CRS COMPANY STRUCTURE IN DUBAI.

Hincapie

Mentor Group Gold
I am about to move country in the EU - and need a new setup for a sidebusiness I have. It isnt massive in income, but I´d like to have it separated from where I am - and minimize administrative obligations. First and foremost I´d like to be able to spend my time on the biz side of things, and not worry too much about accounting, tax reports etc (but happy enough to pay some, pay someone a bit to do the reporting etc...what Im not happy with is the Scandinavian style where you need a fulltime accountant for the privilidge of paying 50% tax).

So what I am thinking is: Setting up a LTD (or similar) within the EU - with accompanying bank account.
The corporate tax rate does not have to be 0 - but I would prefer it to be pretty low & primarily I dont want alot of reporting/accounting requirements, I simply hate the administrative side of things.
I will be residing elsewhere in the EU - and any money "pulled home" will be reported as income, not trying to hide in that sense.
The business does SEO work, some coding/programming jobs, some adult commission incomes (it can be kept discreet and not said directly in the descriptions, other front websites can be shown etc, but the bank does need to be ok with getting payments from adult processers like ccbill.com, epoch.com etc).

I will need access to netbanking/wire transfers in&out+a debit card (visa or mastercard)

Now, my first thought was Cyprus - for both the company and the bank. Say a Cypriot LTD and Hellenic Bank or Bank of Cyprus.

Is that a good/possible choice?
Are there better choices than Cyprus for it?
Who is a good solid agent who could set it up there and what would be the cost initially+ongoingly?
Am I missing something in my planning?

Hoping this is the correct forum for such a question & grateful for advice.
 

Fred

Dubai Expat
Mentor Group Gold
Commercial Service
Hi,

if you require something in the EU you can take a look at Malta and Cyprus.

Keep in mind that if you live in an EU country with strong CFC rules - your country of residence will simply consider the company on Malta or Cyprus as a local one and tax it with local tax rates. To avoid this you need a physical office and minimum 1 employeed company director on Malta or Cyprus to create substance and really only pay tax in your local home country on the money that will be paid out from the Malta or Cyprus company.

You are now facing costs of minimum 1000+ EUR per month even more beside of the accountant and bookkeeping + complex company structure with 2 companies on Malta for the 5% tax or 12.5% tax on cyprus.

Well that's it if you need the company inside the EU. As you can see it's not affordable for a side business.

If you can take a look outside the EU you have some more joice.
 

Hincapie

Mentor Group Gold
Thank you very much Fred.

Those are good considerations. My problem is though that at least the bank account needs to be in the EU (as some of the commission payments, Epoch for instance, will only send to the region in which you registered). In theory the company could be located elsewhere but not sure if that is doable.

The business could finance the 1000/mo etc, despite being a side-biz, but a setup needing that level of maintenance, administration and reporting would defy the purpose. The ideal scenario is to find a setup for it with minimal administration, basic reporting and taxes paid based on that. Basically, I want to be able to focus solely on working - and not having to worry about bookkeeping, audits, calculations etc etc.

I was under the impression that Cyprus for instance doesnt necessarily reveal the ownership of a llc, thus assuming it would cut out some of the problem with showing substance to the home country. But I may have read that wrong (and the downside to Cyprus is the full accounts, annual audit etc demands - that means as much headache with the saved taxes potentially being eaten by expenses to having those things carried out)
 

Fred

Dubai Expat
Mentor Group Gold
Commercial Service
Thank you very much Fred.

Those are good considerations. My problem is though that at least the bank account needs to be in the EU (as some of the commission payments, Epoch for instance, will only send to the region in which you registered). In theory the company could be located elsewhere but not sure if that is doable.

The business could finance the 1000/mo etc, despite being a side-biz, but a setup needing that level of maintenance, administration and reporting would defy the purpose. The ideal scenario is to find a setup for it with minimal administration, basic reporting and taxes paid based on that. Basically, I want to be able to focus solely on working - and not having to worry about bookkeeping, audits, calculations etc etc.

I was under the impression that Cyprus for instance doesnt necessarily reveal the ownership of a llc, thus assuming it would cut out some of the problem with showing substance to the home country. But I may have read that wrong (and the downside to Cyprus is the full accounts, annual audit etc demands - that means as much headache with the saved taxes potentially being eaten by expenses to having those things carried out)
I assume you are in the adult industry if you use Epoch Payment.

In your case I would go with a UK Ltd. and a Paxum account.

Paxum provides local bank account details with Barclays so Epoch should be able to payout.

This setup would cost you initial below 100EUR and the running cost with the accountig etc. would be small as well due to the low turnover. Later you can go with a Cyprus Ltd that is setup with nominee and BoC account.

But be careful if somebody is claiming it's easy to achieve in Cyprus we had already several clients that even after 1 year didn't received a bank account. You need to have some economic link to Cyprus or really need a good introducer to the bank. And even then you can expect something around 10.000 EUR one time setup and 5.000 EUR yearly running cost.
 

Hincapie

Mentor Group Gold
As stated in the original - some part of it is adult, and thats where Epoch comes in indeed.

I actually still have a private account with Hellenic in Cyprus after living there some years ago ... and things might have gotten a lot more complex since then - but back then local companies offered redtape services including biz registration for a few hundred euros (I assume it was aimed mainly at residents...so that´d usually make it easier too of course). But again, not so sure about Cyprus now after reading further - not because of the expense, that might be fine and/or doable in cheaper ways but because it sounds like they actually have more reporting requirements than in other European jurisdictions, making it counterproductive when the aim isnt to save money on tax or find the cheapest solution, but to cut administration/headaches to a minimum

Paxum...I have heard a lot of bad stories about them, frozen accounts, lack of customer service etc ... i have a paxum account with a bit in it - never used it for anything other than accepting a few payments though.
 
DLS Dubai Company Formation and banking solution
Fast Offshore - Company Formations Since 1998
DLS Dubai Company Formation and banking solution
Top