Fashion Company - Where is the best place for a global setup!!!

[ejcxcf]

Im an owner of a fashion company with products and services located in Australia with clothing production in Portugal-Europe


Most of my business is online worldwide over an ecommerce web site and some services are sold in Portugal and Australia.


At this stage i would like to know where would be the best place to have my business registered since Im dealing with customers worldwide and an european product production. The main method of payment is Paypal (I accept the most common currencies - USD, AUD, CAD, GBP, NZD, ZAR, EURO) and I normally withdraw the funds to a Portuguese Bank Account (euro). Im also an European/Portuguese Citizen.


What do you think would be the best setup?


Thanks

 

[JohnLocke]

May I ask what your goals are? I mean do you look for a offshore company to reduce your tax or do you simply need a solution to accept Paypal or do you need a company that has to be located in a jurisdiction that opens the European marked for you? I believe that you are from Portugal since you have bank account there so it won't be the latter.

 

[ejcxcf]

Yes Im Portuguese but i live in Australia and i also have my business registered here and also i do have an Australian Bank Account.


All my products are made in Portugal-Europe, most of my products are selling online and i believe they will have an high demand in the next 4 years. Im trying to find the best setup to avoid tax and other fees... I dont know if paypal is also a good option but it is the most common method of payment online. What do you think? What should be my best setup? Offshore company and bank account?

 

[haslan]

You need PayPal many can only pay this way.

 

[JohnLocke]

Well, what I would suggest you is to look into this issue together with a local tax advisor, there are several options for you to reduce taxes if the offshore company structure is done correct.


For instant it may not be the way to try the route of illegal tax evasion, but rather look into what DTA, TIEA or other tax treaty's Australia may have with Cyprus or the Seychelles. If no DTA or TIEA is in place with say the Seychelles it may be worth to look which options you may have there to incorporate a company and to avoid taxes on your online business. According to the OECD list of countries signed TIEAS then Cyprus has not signed any TIEA with Australia yet, so there may still be options for you to avoid to pay tax in Australia if that is the Goal.


For instant if Cyprus has a DTA with Australia you could avoid to pay the 30% corporate tax in Australia but only pay the 10% corporate tax in Cyprus!

 

[codemark]

Where is the best place for a global setup!!!


How many Indian cities score high on the Global Cities Index? Well, none!


Even as five of the world's 10 most global cities are in Asia and the Pacific -- Tokyo, Hong Kong, Singapore, Sydney, and Seoul -- not a single Indian city figures among the top 40 cities of the world.


India's metros lag behind many other developed cities of the world. New Delhi is ranked at 45, followed by Mumbai at 46 and Kolkata at 63, out of the 65 cities surveyed. India's IT capital Bengaluru is ranked at a dismal 58. In terms of GDP, Mumbai ranks 25th, Delhi 32nd, Kolkata 44th and Bengaluru 53rd.

 

[clemens]

How many Indian cities score high on the Global Cities Index? Well, none!
Even as five of the world's 10 most global cities are in Asia and the Pacific -- Tokyo, Hong Kong, Singapore, Sydney, and Seoul -- not a single Indian city figures among the top 40 cities of the world.


India's metros lag behind many other developed cities of the world. New Delhi is ranked at 45, followed by Mumbai at 46 and Kolkata at 63, out of the 65 cities surveyed. India's IT capital Bengaluru is ranked at a dismal 58. In terms of GDP, Mumbai ranks 25th, Delhi 32nd, Kolkata 44th and Bengaluru 53rd.

Can you let us know what all this is about?

 

[bond]

Well, what I would suggest you is to look into this issue together with a local tax advisor, there are several options for you to reduce taxes if the offshore company structure is done correct.
For instant it may not be the way to try the route of illegal tax evasion, but rather look into what DTA, TIEA or other tax treaty's Australia may have with Cyprus or the Seychelles. If no DTA or TIEA is in place with say the Seychelles it may be worth to look which options you may have there to incorporate a company and to avoid taxes on your online business. According to the OECD list of countries signed TIEASthen Cyprus has not signed any TIEA with Australia yet, so there may still be options for you to avoid to pay tax in Australia if that is the Goal.


For instant if Cyprus has a DTA with Australia you could avoid to pay the 30% corporate tax in Australia but only pay the 10% corporate tax in Cyprus!

Wouldn't be ok to register the company in Cyprus and have a Cyprus bank account or register in the Seychelles with a Cyprus bank account in order to lower the taxes? I see that the main goal is not tax evasion but to lower the tax bill. Tax for corporations in Portugal is 25% if profits above 12500euros.


As for the Australian case I guess that since Cyprus has not signed any TIEA then it wouldn't pay any taxes in Australia if the company is incorporated in Cyprus.


What do you guys say? this examples applies to a lot of companies out there that are selling worldwide but the owners are european based...

 

[clemens]

To avoid to pay tax I would anytime recommend a Seychelles company and a Cyprus bank account. If the question is to simply reduce the tax then I would look at a Cyprus company with bank account in Cyprus, important would be to look into what DTA Cyprus has with your country of residence and to ensure that the Cyprus entity is controlled and managed in Cyprus. You will pay 10% corporate tax and can't avoid to pay tax at all.


TIEA = Tax Information Exchange Agreement


DTA = Double Tax Treaty - this is what you will want to look at in your case.

 

[bizman]

For your fashion company I would incorporate in Cyprus and pay the 10% tax, this will look more reliable towards your business partners and customers.... just my 2cents

 

[wonderwilly]

Honestly from the countries left, and the nature of your business, then Hong Kong or Cyprus one of these may be the best place in today's world who know tomorrow it may be different.

 

[JohnLocke]

Honestly from the countries left, and the nature of your business, then Hong Kong or Cyprus one of these may be the best place in today's world who know tomorrow it may be different.

Second that... for such type of business you will need to find a offshore / low tax jurisdiction which is "white labeled" in the eyes of your customers, Cyprus and HK are such jurisdictions.

 

[blainchain]

What about the BVI or Isle of Man ?

 

[JohnLocke]

BVI and IoM have almost the same status as a Seychelles or Panama company and is not White Listed with the OECD yet.