Need advice for business setup

Blackbird

Mentor Group
Mentor Group
Hello!

I'm new to the forum but have been reading stuff from here. I need an advice how to setup business.

Now I'm selling encrypted phones as a hobby but as it's growing I need to incorporate this business.

So what I do is basically by phones and install encrypted messenger app to modified os. Then sell these phones to clients who buy 3 to 6 months licence from me continuosly. Clients are mostly in EU and some other countries too. Of course they want to respect privacy and mostly buy phones with BTC, cash and sometimes wire transfer. Sales are made in person or I send phones by DHL. Website doesn't have or need payment options as I can send instructions in email etc. For licence extension they pay with same methods. I buy app licences in BTC from app company.

Of course I have to transfer cash and BTC to account to buy phones. As this is becoming business I would like to transfer all expenses to a company instead of using personal accounts. This is one reason I would prefer maybe Seychelles or some other IBC not to hassle with bookkeeping and corporate tax.
Also messing around with VAT is bit problematic that's I would prefer non EU company.

I have Eu passport and residency in another country with ok personal income tax. Also because of the respect for client anonymity invoicing should be kept fairly simple.

Would Seychelles and Emi work in this case? Or does anybody have a good setup to recommend for this kind of business?
 

user9823671

Building Trust
Entrepreneur
This is one reason I would prefer maybe Seychelles or some other IBC not to hassle with bookkeeping and corporate tax.
Where are you resident? You said you have EU passport and residency in another country. Is that other country also EU?

Unless you hide ownership of the Seychelles company from your resident country, you will most likely have to pay corporation tax to your resident country due to CFC laws
 

Blackbird

Mentor Group
Mentor Group
Ok I see. Problem is if I'm using Transferwise I will most likely have to open the business account with my own passport. So im not sure if hiding anything with nominees is worth it. Anyways there is no public company Register in Seyschellies as I understand.

I have currently residence in Latvia which adopted CFC rules in the beginning of this year. But:

The CFC rules do not apply if the CFC’s profit does not exceed EUR 750 000 and the income derived other than from the sale of goods and services does not exceed EUR 75,000.

this is from Deloitte Latvia tax highlights 2019.

So these are ok business limits for me now. I can still put expenses to company. BTC sales are not profit untill u transfer them to account.

I don't know what kind of reports Transferwise does and to who...
 

lavel

Offshore Agent
Business Angel
I don't know what kind of reports Transferwise does and to who...
it is difficult to get a clear answer from them. I tried a few times but they don't answer it clear, they have to comply to the rules that's sure.
 
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