European company formation what's the point?

[camien]

Hi,

Reading & researching lots for my business which is selling on Amazon and affiliate programs. What I was looking for is a European company formation. I have researched Romania, Estonia and Malta because some of my competitors are registered there with the business.

Do you know which country is best for business done online? Is a Romanian company considered to be offshore or just simple Europe company?

 

[JohnLocke]

Well, it depends very much on what it is you want. Most often software companies are incorporating in Romania because they can get programmers and web developers cheap there. But for your business as I read it I would rather look into Cyprus or Malta depending on what you like the most.

 

[hungryit]

Seychelles and Cyprus bank account or you are going for a Cyprus corp with banking in Cyp. easy and fast to get established.

 

[SasxInc]

I'll suggest you for Cyprus offshore company with bank account. Why will you choose Cyprus?

• Stable economy .
• Lower taxes compared to other jurisdiction.
• High level of privacy protection.
• Easy to incorporate

And Most importantly here have some reliable services with different packages that will suite your need.

 

[negon]

What's the outcome OP? Do you mind to share

 

[redeye]

If it's straight online business I would go for a Cyprus company to get a PayPal account and 2checkout account if required. Otherwise if PayPal is not require go for a Seychelles corp with bank account = No Tax, no trouble

 

[JohnSeed]

Cyprus, Malta and Ireland are 3 great offshore jurisdictions in Europe and that can be used for PayPal, 2checkout, BitPay, BitCoin, Neteller and Skrill

 

[dotbloup]

if you are not in Romania, you have to pay withholding tax on dividends from Romanian company.
Dividend Tax in Romania

There is 16% withholding tax on dividends from Romanian company.
There is 20% withholding tax on dividends from Estonian company

With malta, i think it is complicated, it is another story about corporate tax, you have to know good accountants for getting an exemption. If you mess it you have to pay 35% corporate tax

On the other hand, there is no withholding tax from Cyprus company on dividends.

I don't understand why some people here talked about Seychelles, Amazon EU affiliate program neither accepts Company from outside Europe nor a bank account from outside Europe which is logical.

 

[negon]

With malta, i think it is complicated, it is another story about corporate tax, you have to know good accountants for getting an exemption. If you mess it you have to pay 35% corporate tax

Thought they had some FreeZone or something, might well be I'm wrong..

On the other hand, there is no withholding tax from Cyprus company on dividends.

Since when?

I don't understand why some people here talked about Seychelles, Amazon EU affiliate program

Some people just post they don't think

 

[dotbloup]

Thought they had some FreeZone or something, might well be I'm wrong..
I think it is for docking...
https://www.kpmg.com/MT/en/IssuesAndInsights/Doing Business in Malta/Documents/Malta Freeport.pdf

About the Dividend in Cyprus, no withholding tax for non residents since at least 2012

Here is the info from Cyprus gov.
POINT OF SINGLE CONTACT | Taxation

because of that, i prefer to go for tax optimization

 

[CoinMaster]

This last reply seems to be what we want to look at for out offshore companies to stay long term.

 

[FullDISK]

" Is a Romanian company considered to be offshore or just simple Europe company? "
If your Country is not Romania, then yes, its Offshore. It is considered an offshore company when you open a company in another country that is not yours.
About your question, my last experience was a Scottish LP, it works prefect if you want a company in Europe because you do not have much bureaucracy, also is charged 0% from the dividends if no business in UK. Other option and often referred is Cyprus, but you need take care about accounting and Audits. If its not a problem for you, then is a good option because have a low tax (10%).
Malta, Romania and Estonia, I do not see these as a good option.

 

[Solomate]

Hi,

Reading & researching lots for my business which is selling on Amazon and affiliate programs. What I was looking for is a European company formation. I have researched Romania, Estonia and Malta because some of my competitors are registered there with the business.

Do you know which country is best for business done online? Is a Romanian company considered to be offshore or just simple Europe company?

Can you please tell me what company you registered and in which country? I need a real company offshore and europe please?

 

[brutalzorn]

I have asked a agent to help me get a Cyprus bank account and asked him about the Scottish LP which he answered positive. However, there are endless regulations and documents that need to be provide. I get the full list next week.

 

[CoinMaster]

please post your list of requirements once you know more

 

[brutalzorn]

They need documents from ALL partners of the LP, if the partner is a Corporation they require documents from the Corporation and the owners of this corporation. It's bad, sorry I'm out!

 

[CoinMaster]

ouch that's bad news

 

[JohnLocke]

ouch that's bad news

Why is that bad news. As soon as you have several people engaged in one company, LP or other entity the bank want to know them all. Or rather, they must know them all to comply to international KYC rules.

 

[FullDISK]

That is the natural process from a European Bank! No bank in Europe will open an account without know the owners of the company. The same for any Belize company (or other) that want open a bank account in Europe, they will ask for all docs of each dominee... Prefectly normal.
Do not see nothing strange there! Also dont know why is bad nows LOOL