Intermediary Company for EU - MENA setup

[inector]

Hey, a Russian friend of mine does B2B sales to Russia, EU & MENA (it's electronics, nothing restricted)

It's an okay volume of 750-1m per year.

He wants to get residency somewhere, but he is still Russian passport holder.

He is thinking of a chill country to store funds & operate (like UAE), but then how to trade with EU easily, needs to be another company somewhere. Some company that can collect payment from EU, and easily distribute them to UAE.

SG (high taxes)? HK? US?

 

[Marzio]

Georgia has a free trade agreement with EU (and China), has a lot of free zones and 0% dividends distribution to UAE.

Benefits of Free Trade Zone in Gerogia

Free Trade Zone in Tbilisi, Poti a Kutaisi, Georgia. Free Industrial Zone in Georgia. Tax Free Company.

www.freetradezone.ge

 

[inector]

Georgia has a free trade agreement with EU (and China), has a lot of free zones and 0% dividends distribution to UAE.

I might be wrong, but Georgian banks are quite aggressive and unprofessional. Quite popular on the forum. 0% tax is really not the goal here, it's more about long-term.

Is it just better to pay higher taxes for reliability, like Singapore?

 

[Marzio]

0% tax is really not the goal here

If you want to pay corporate taxes you are more than welcome to do that.

I posted about free zones as an added bonus but the kicker is the free trade agreement between EU and Georgia (which is what you asked) and the 0% WHT on dividends distribution to UAE.

but Georgian banks are quite aggressive and unprofessional.

Maybe they are with those who do not understand the business model or don't have physical presence in Georgia.

 

[CyprusLawyer101]

Cyprus is the place you are looking for.

 

[inector]

Maybe they are with those who do not understand the business model or don't have physical presence in Georgia.

Wise words, thanks Marzio, any lawyer (to setup a company) recommendations of your choice? Will look through forum as well.

Cyprus is the place you are looking for.

He's too afraid of EU sanctions, but it is indeed a good choice for now.

 

[Wills]

Wise words, thanks Marzio, any lawyer (to setup a company) recommendations of your choice? Will look through forum as well.

He's too afraid of EU sanctions, but it is indeed a good choice for now.

Bulgarian company with permitions and bank accounts is also option. Cyprus - best of it. A lot of russians there, good place for business if you find good tax and legal to help you.

 

[Forester]

Well, just my 2 cents...

Hey, a Russian friend of mine does B2B sales to Russia, EU & MENA (it's electronics, nothing restricted)

Especially electronics can fall into the framework of the restrictions very easily (double purpose goods).

He wants to get residency somewhere, but he is still Russian passport holder.

Where is he residing currently, if you can share?

He is thinking of a chill country to store funds & operate (like UAE), but then how to trade with EU easily, needs to be another company somewhere. Some company that can collect payment from EU, and easily distribute them to UAE.

Well, and from where the goods he is selling came from? Is he a producer? (=>where is a factory?) Or he buys it somewhere? (=>where?).
IMO, this matters...

Cyprus is the place you are looking for.

With all due respect to your knowledge and experience, @CyprusLawyer101, I cannot agree. From what I witnessed, the situation there has gotten worse (I mean re: Russian presence) and it is getting worse. (I don't like it but it does not matter.) Or am I seeing it from the wrong perspective?

Bulgarian company with permitions and bank accounts is also option. Cyprus - best of it. A lot of russians there, good place for business if you find good tax and legal to help you.For Bulgaria, you can PM if you need more details, in BG there are also a lot of russian making business and have some options

Re: Bulgaria: Aren't you afraid of changes induced by the current political situation? The new government (and parliament) seems to be anything but pro-russian... (I'm really just asking, I do not possess enough of information.)

 

[CyprusLawyer101]

With all due respect to your knowledge and experience, @CyprusLawyer101, I cannot agree. From what I witnessed, the situation there has gotten worse (I mean re: Russian presence) and it is getting worse. (I don't like it but it does not matter.) Or am I seeing it from the wrong perspective?

What you are saying is true , politically the Cyprus government is leaning towards the west, however there is still a large Russian population in Cyprus living normally. He is mentioning looking for a jurisdiction to become resident - if he does becomes resident in Cyprus then he will enjoy the tax benefits and be able to operate any corporate set up for his business with enough flexibility and a chill out environment.

 

[CyprusLaw]

Well, just my 2 cents...

Especially electronics can fall into the framework of the restrictions very easily (double purpose goods).

Where is he residing currently, if you can share?

Well, and from where the goods he is selling came from? Is he a producer? (=>where is a factory?) Or he buys it somewhere? (=>where?).
IMO, this matters...


With all due respect to your knowledge and experience, @CyprusLawyer101, I cannot agree. From what I witnessed, the situation there has gotten worse (I mean re: Russian presence) and it is getting worse. (I don't like it but it does not matter.) Or am I seeing it from the wrong perspective?

Re: Bulgaria: Aren't you afraid of changes induced by the current political situation? The new government (and parliament) seems to be anything but pro-russian... (I'm really just asking, I do not possess enough of information.)

Despite the sanctions and despite the Government's compliance with them and its general tendency to lean towards the West (we are in the EU so it's not like there is an option), this does not affect someone who intends to relocate and reside in Cyprus. Even if he chooses to reside in UAE and have a company in Cyprus it would still work and he would still enjoy the tax benefits.

Also, Cyprus still has a very large Russian community.

 

[Don]

Despite the sanctions and despite the Government's compliance with them and its general tendency to lean towards the West (we are in the EU so it's not like there is an option), this does not affect someone who intends to relocate and reside in Cyprus. Even if he chooses to reside in UAE and have a company in Cyprus it would still work and he would still enjoy the tax benefits.

Also, Cyprus still has a very large Russian community.

Cyprus also has two jurisdictions. Might want to check out the northern side as well.

‘No questions asked’: how Russian money is fuelling a building boom in northern Cyprus

Casinos and schools fill with Russians in the island’s Turkish-occupied north, which offers a sanctions-free life for those seeking to move their money after a clampdown in the south

www.theguardian.com

 

[inector]

Where is he residing currently, if you can share?

Russia, he is just planning to get it rolling

Well, and from where the goods he is selling came from? Is he a producer? (=>where is a factory?) Or he buys it somewhere? (=>where?).

For out of Russia trade, it would be China & Korea

Also, Cyprus still has a very large Russian community.

Like Forester mentioned, just because there is a large community of immigrants in a country governed by EU laws, doesn't make it safer. They don't have advantage.

Bulgarian company with permitions and bank accounts is also option

Bulgaria is part of FATF now, plus EU, which is fully opposite of my question.

Cyprus also has two jurisdictions

That's a great point. It seems that CIT there is up to ~25%. Any workaround?

 

[Forester]

Despite the sanctions and despite the Government's compliance with them and its general tendency to lean towards the West (we are in the EU so it's not like there is an option),

Well, just a tiny remark:
Hungary and recently Slovakia show that there is an option, IMO. But this is OT here, let's put it aside.

this does not affect someone who intends to relocate and reside in Cyprus.

This is really nice to hear; and I am glad of it.

Russia, he is just planning to get it rolling

For out of Russia trade, it would be China & Korea

Well, in such a case, if I were your friend, I would sit and have a look at first, what climate, nature, culture and society fit me best. There are ~200 countries at the world, and only ~50 of them adopted some sanctions against Russia and/or Russians.
So there is a plenty of options to choose for living and definitely, after deciding what kind of country I like, I would be able to choose some of them to run my business, too (to run a business is, in fact, possible in many, many countries – or at least, you usually have more options )

 

[lacomaco]

Cyprus is the place you are looking for.

No problem with bank accounts in Cyprus with Russian owners and possibly directors?

Bulgarian company with permitions and bank accounts is also option. Cyprus - best of it. A lot of russians there, good place for business if you find good tax and legal to help you.

No problem with bank accounts in Cyprus or Bulgaria with Russian owners and possibly directors?

 

[Sols]

No problem with bank accounts in Cyprus or Bulgaria with Russian owners and possibly directors?

If they hold valid CY or BG residence permits, it's usually fine (if everything else about the business is fine). If they are non-residents of CY/BG/EU or residents of Russia, expect a very low or no chance of success.