In which country to open my B2B research company?

[thomasparra]

I am a French passport holder who lived in US and HK. I have never filed taxes in France as I have never worked there but I will have to in 2024 for year 2023.

I am planning to start a 100% online B2B services company with clients in the investment and strategy world - think private equity, hedge funds, venture capital, strategy teams of private companies, startups). The business is geo agnostic, but the largest users of these services are in HK, SG, London, NYC and the likes.

As many of you told me before, I don't think France makes sense given the nasty taxes and social contributions rates (40-50%). I think it's fine to start a business in France (creation and maintenance costs are ok), you get unemployment benefits till your business generates money, healthcare but as soon as you start making making you are hit hard. If I make 100k in revenue the first year with 50% in business margin, I would be happy to make 2000 euros a month. In a juridiction like UAE or HK I would make at least 4000 so double that. Obviously as I scale the tax savings make even more sense.

I am debating between Malta, Bulgaria, Dubai, and HK and I am open to any other alternatives. I don't really plan to live all year round in a specific place but I understand I need to get tax residency somewhere.

1) Based on the nature of my business, where would you go? I don't really need to meet clients in person but it's nice being close, especially before signing contracts.

2) In terms of tax residence, I understand the easiest would be to rent an apartment in Bulgaria for the year as it is cheap, and use that to get proof of full year residency to Bulgaria and France if they ask. Dubai would be much more expensive. I know they can issue a tax certificate for an individual who stays 90 days but maybe France would still ask for some more evidence such as a lease? Otherwise I would be fine staying in Dubai only 3 months per year in an Airbnb or something.

3) HK sounds very attractive and I would love to be there - more so than Dubai. I have relationship with the tax office, banking should be okay for me. However getting a visa or tax residency seems tedious compared to UAE for instance

The plan is to make 60k in revenue 1st year (30k profit before tax), 120k 2nd year and 200k 3rd year. I will likely need to hire or subcontract to execute once I reach 120k in revenue. Good staff for this business can be found in pretty much any country with good English; all around the world.

 

[Ancova]

I am a French passport holder who lived in US and HK. I have never filed taxes in France as I have never worked there but I will have to in 2024 for year 2023.

I am planning to start a 100% online B2B services company with clients in the investment and strategy world - think private equity, hedge funds, venture capital, strategy teams of private companies, startups). The business is geo agnostic, but the largest users of these services are in HK, SG, London, NYC and the likes.

As many of you told me before, I don't think France makes sense given the nasty taxes and social contributions rates (40-50%). I think it's fine to start a business in France (creation and maintenance costs are ok), you get unemployment benefits till your business generates money, healthcare but as soon as you start making making you are hit hard. If I make 100k in revenue the first year with 50% in business margin, I would be happy to make 2000 euros a month. In a juridiction like UAE or HK I would make at least 4000 so double that. Obviously as I scale the tax savings make even more sense.

I am debating between Malta, Bulgaria, Dubai, and HK and I am open to any other alternatives. I don't really plan to live all year round in a specific place but I understand I need to get tax residency somewhere.

1) Based on the nature of my business, where would you go? I don't really need to meet clients in person but it's nice being close, especially before signing contracts.

2) In terms of tax residence, I understand the easiest would be to rent an apartment in Bulgaria for the year as it is cheap, and use that to get proof of full year residency to Bulgaria and France if they ask. Dubai would be much more expensive. I know they can issue a tax certificate for an individual who stays 90 days but maybe France would still ask for some more evidence such as a lease? Otherwise I would be fine staying in Dubai only 3 months per year in an Airbnb or something.

3) HK sounds very attractive and I would love to be there - more so than Dubai. I have relationship with the tax office, banking should be okay for me. However getting a visa or tax residency seems tedious compared to UAE for instance

The plan is to make 60k in revenue 1st year (30k profit before tax), 120k 2nd year and 200k 3rd year. I will likely need to hire or subcontract to execute once I reach 120k in revenue. Good staff for this business can be found in pretty much any country with good English; all around the world.

My Suggestion would be Cayman Islands.

The Cayman Islands serves as a renowned offshore jurisdiction for establishing and managing investment funds, including hedge funds and private equity funds.
It offers a favorable regulatory environment, tax advantages, and a strong legal framework. Investment funds in the Cayman Islands benefit from tax neutrality, confidentiality, and regulatory flexibility.
The jurisdiction provides a sophisticated financial infrastructure, attracting fund managers and investors seeking efficient fund setup and administration.
The Cayman Islands' global reputation as a premier financial center, backed by political stability and industry expertise, makes it an appealing choice. However, compliance with laws and seeking professional advice are essential for proper fund establishment and operation.

• Tax Neutrality: Cayman Islands offer tax-neutral environment without direct taxes on income, capital gains, or corporate profits.
• Financial Hub: Renowned global center for banking, investments, and fund management.
• Legal Stability: English common law principles ensure a stable and familiar legal framework.
• Exempted Companies: Establish as Exempted Companies with tax and regulatory advantages.
• Foreign Ownership: 100% foreign ownership empowers international investors.
• Privacy Priority: Regulations protect shareholder and director information for confidentiality.
• Global Reputation: Reputable image and recognized as reliable offshore jurisdiction.
• Strong Regulation: Follows robust anti-money laundering and counter-terrorist financing regulations.
• Currency Freedom: No currency restrictions or exchange controls, facilitating fund movement.
• Efficient Setup: Incorporation process is straightforward and efficient.
• Asset Safeguarding: Offers asset protection and wealth preservation structures.
• Diverse Sectors: Beyond finance, suitable for shipping, real estate, and more.

 

[thomasparra]

My Suggestion would be Cayman Islands.

The Cayman Islands serves as a renowned offshore jurisdiction for establishing and managing investment funds, including hedge funds and private equity funds.
It offers a favorable regulatory environment, tax advantages, and a strong legal framework. Investment funds in the Cayman Islands benefit from tax neutrality, confidentiality, and regulatory flexibility.
The jurisdiction provides a sophisticated financial infrastructure, attracting fund managers and investors seeking efficient fund setup and administration.
The Cayman Islands' global reputation as a premier financial center, backed by political stability and industry expertise, makes it an appealing choice. However, compliance with laws and seeking professional advice are essential for proper fund establishment and operation.

• Tax Neutrality: Cayman Islands offer tax-neutral environment without direct taxes on income, capital gains, or corporate profits.
• Financial Hub: Renowned global center for banking, investments, and fund management.
• Legal Stability: English common law principles ensure a stable and familiar legal framework.
• Exempted Companies: Establish as Exempted Companies with tax and regulatory advantages.
• Foreign Ownership: 100% foreign ownership empowers international investors.
• Privacy Priority: Regulations protect shareholder and director information for confidentiality.
• Global Reputation: Reputable image and recognized as reliable offshore jurisdiction.
• Strong Regulation: Follows robust anti-money laundering and counter-terrorist financing regulations.
• Currency Freedom: No currency restrictions or exchange controls, facilitating fund movement.
• Efficient Setup: Incorporation process is straightforward and efficient.
• Asset Safeguarding: Offers asset protection and wealth preservation structures.
• Diverse Sectors: Beyond finance, suitable for shipping, real estate, and more.

Thanks, however I will not set up a fund but my clients are. I am looking for a more straightforward and simple setup and I think a US LLC might work better for tis kind of option

 

[EliasIT]

Simple UK LTD would do wonders if you set it up right. I see services around where you can appoint nominees so your name will stay out of the corporate documents. That may work well. Similar setups are in my portfolio for same reasons, which isn't for sale!

 

[thomasparra]

Simple UK LTD would do wonders if you set it up right. I see services around where you can appoint nominees so your name will stay out of the corporate documents. That may work well. Similar setups are in my portfolio for same reasons, which isn't for sale!

I thought of the UK LTD but I struggle to see its benefits today versus a French one for example. I would still need to find a country where to be a tax resident of as well. Why not pick a Hong Kong company in my case instead then?

 

[thomasparra]

What should I do guys?

 

[thomasparra]

I am more and more leaning towards HK again ... is that a good idea?

 

[thomasparra]

I think I will start it in HK, and be a resident of France for 2023 (too late anyways now). If the business goes well and depending on if I get my HK visa approve by early 2024, I can move permanently there or some low cost country in Asia.