Information

[CAKEBRAINS]

Hello,

I was looking for an option for my business a couple of months ago.

Seeing if anyone has a better option but this is my requirements.

• 0% Offshore Income Tax Rate
• 0% Corporate Tax Rate
• 0% Capital Gains Tax Rate
• 0% Personal Income Tax Rate
• 0% VAT Rate
• no need to file accounts
• no need to have an accountant to file anything
• no need to report anything
• bank account must be able to accept USD or GBP (NOT EUROS)
• must have a visa debit or mastercard.
• the ability to use paypal to SEND and RECEIVE PAYMENTS. (BVI for example has the ability to open a PayPal account but can't receive funds.)

If i can't open a PayPal Account in the country with the requirements above what options for me to have a company acting as an agent? Do you know any firms that would help me get a UK based company setup to act as an agent without me having to file everything and again pay for an accountant, Fees, returns, vat etc etc.

The reasons for this are not so much TAX AVOIDANCE, I am looking for a solution that would be cheaper than having a UK based registered company. Accountant Fees, Payee Fees, VAT fees, return fees,

Our UK accountant is costing us around £4000 per year, We have to keep receipts for everything for VAT purposes, Taxes, Paye Schemes. Even with VAT we have to charge our customers VAT and then pay that to the UK. If we have an offshore non VAT company we wouldn't be saving any money but customers would be paying less and then we can beat the competition.

I know i have to still pay corporation taxes in the united kingdom, I am however wanting to get rid of most of the red tape involved in having a company in the united kingdom... ie report this, report that, file this file that etc etc.

 

[CAKEBRAINS]

Just to clarify a little further on the no need to report anything I'm happy reporting small things, Profits, Income, Losses, but i'm trying to reduce the amount of work needed on filing paperwork and focus more on our core business.

 

[CAKEBRAINS]

Bump - No reply yet, Can anyone help me here?

 

[Helkins]

There aren't many jurisdictions that'd cover all of your requirements really. Good set-ups take money and time and often involve more than one country so based on your current profits it might not be worth it (I don't know what they're). I don't know what revenue you're getting or what's your niche but I believe you're in IT services, I had one company as such and if that's the case I used Seychelles as my company where I'd keep my profits and I'd rent a EU company to invoice clients for me. It costs around 5% of the transaction value but for my specific case it was well worth it as I didn't have to report anything, pay taxes or anything. I'd always use the 0% VAT intra EU scheme so whenever the client was let's say FR I'd invoice him from the NL and likewise.

 

[CAKEBRAINS]

Hey, Can you have a full bank account with seychelles company?

 

[CAKEBRAINS]

I know a friend with a seychelles company and he has been refused by PayPal, 2Checkout, Stripe, Square, Wix Payments, Paddle, WireCard, BrainTree

 

[Martin Everson]

What line of business are you in. Even without accounting etc your traditional zero tax offshore IBC is not cheap to run anyway. You are best to go for a reduced tax or deferred tax strategy.

I have no idea what line of business you are in as this will make a big difference to any solution.

P.S Please try and put a proper subject title on the topic instead of just "Information". If you can edit it then change it as this will help more people discover the threads real subject.

 

[CAKEBRAINS]

IT Services, Automatic Payments

Around £100,000 of payments automatically processed and handled.

VAT Chargeable.

The issue is,

Taxes, Pension Schemes, VAT, PayE, National Insurance Payments, Accountant Fees.

We end up with around £80,000 after paying £20,000 VAT

Then around £64,800 after paying Corporation Tax @ 15,200

Around £60,000 left after paying a decent accountant that does things on time. (£4000)

PAYEE tax which is around 20%

Auto Enrolled pension that we MUST contribute minimum of 3%

Then there are extra things as well

 

[Helkins]

Hey, Can you have a full bank account with seychelles company?

I do have a traditional account opened for Seychelles IBC in the UAE and a TransferWise account as well.

I know a friend with a seychelles company and he has been refused by PayPal, 2Checkout, Stripe, Square, Wix Payments, Paddle, WireCard, BrainTree

Payment processors usually don't work with Secyhelles, I do however managed to operate using PayOP, Ikajo, Amald and Payfort (which I believe has been acquired by Amazon and no longer exists).

IT Services, Automatic Payments

Around £100,000 of payments automatically processed and handled.

A sum such as this will certainly allow you to create a scheme for yourself, and based on the expenses you mention you basically need any set up that'll be cheaper than £40k.
If your clients are mainly private individuals who don't really care about your country of incorporation because of obvious accounting and tax related issues then you should be good with a Seychelles IBC using the payment processors above, you do need to be prepared for a lengthy KYC in any institution you try to open an account with, your business has to be fully legit otherwise they won't help or will shut you down.
I'm not sure what's your take on moving yourself and your belongings offshore but you could start a US LLC, you certainly wouldn't have as much trouble when it comes to payment processors but you do need to find yourself a bank and of course care where your personal tax residence is and (as far as I know) you will need to spend some amounts of cash on a good accountant.

Alternatively you can look into CCFZ in the UAE, I believe it could be your best bet, I'm very fond and satisfied with UAE free zone entities.
Lastly I want to say, if most of your customers are private and only some corporate than it'll be best to incorporate in a "tax heaven" and deal with the corporate ones using a rented entity.

 

[CAKEBRAINS]

I was looking at UAE but it requires a visit to open a bank account and it's very hard to justify this during a pandemic

 

[Helkins]

I was looking at UAE but it requires a visit to open a bank account and it's very hard to justify this during a pandemic

This is true although you could open an account with an EMI like Payoneer or Bankera entirely remotely for the time being and then switch to a traditional bank when the situation becomes better.
Even during the pandemic UAE is pretty safe and I've been going back and forth to Dubai, never had any issues or fallen ill.