Optimization for small online sales

[Bernard]

Hey guys and girls, I discovered this forum this morning and I'm still keeping an eye on it. In a few hours it will be the new year, but like a good businessman I work without a personal life.
I wish you all a very healthy New Year.

I have a business that generates 50-200K dollars a year, it's selling digital products and it's completely legal, no payment gateway blocks or anything like that. I am a tax resident of the Czech Republic. I am currently in the study phase and would like to establish an offshore company for this business and penetrate the entire European market.
I have very short requirements for what an offshore company should do. I don't want my name to be publicly searchable [only by court or police order] and I want to reduce taxes to 0% - 5% preferably
This is what everyone wants, unfortunately I didn't find an answer here, so it's probably not possible?

I think you will definitely advise me if I tell you that the money can stay inside company or structures. Because I don't necessarily need to pay out and spend money. I don't need personal dividends, everything can stay inside the company & invest it in stock shares or other company activities or growth.

My ideas of how it could work, the parent company will be in Belize or Nevis, for example. I will be a shareholder and I will be an executive of this firm. Then a company is created in Britain or Malta, where the shareholder will be my company in Belize or Nevis. and there will be a paid nominee executive - director. That way my privacy could remain anonymous. A British or Maltese company can get a stripe payment gateway. And I can reduce taxes on mortar to 5% according to what I found.
I'm a newbie, it's certainly not easy, so I'll appreciate your suggestions and comments on how it could work or a completely different attack on a different company structure.

What I'm looking for is anonymity and low taxes, I also don't want my name - KYC to be connected in any way when opening an account with stripe.

I would start this business with two people 50% / 50% share. We are both from CZ
The maximum I am able to invest in such a company structure is 6k USD


Thank you all for your reply or advice

 

[Sols]

In some parts of the world, it's 2024 already. In your imagination, however, it's 1994.

Belize, Nevis... Vintage tax planning at work. And you think a payment processor is going to accept your Malta-UK-Nevis-Belize spaghetti monster?

Accept reality. Your business is doing well. Focus on growing it. You're not at the level where international tax planning makes even the slightest sense.

You're tax resident in CZ. That means any company you form anywhere in the world is tax resident in CZ and has to pay taxes like a local company.

And with a max budget of 6,000? Forget it. 25—100x that budget and it starts making sense to set up an office with some employees in Malta, Cyprus, or other low-tax/low-cost jurisdiction to establish genuine tax residence and presence.

If you don't like Czech taxes and Czech law, don't live in Czechia.

If you have EU passports, you could relocate down to Malta or Cyprus, get much lower tax rates, and avoid public disclosure by using nominee directors/shareholders, as both have closed their UBO registries.

Don't risk your business.

 

[Forester]

I completely agree with @Sols, generally.
Just a remark:

You're tax resident in CZ. That means any company you form anywhere in the world is tax resident in CZ and has to pay taxes like a local company.

Yes, it is exactly so – under condition that this company is managed by you from CZ (what probably will happen, if I understand well) and CZ taxmen will be aware of it and willing to take appropriate measures. The latter might eventually not happen (as I know how it looks in CZ a little bit) but it can happen – and really, consider whether it is worth such a risk.

However, have a look at Estonia (with its e-residence), forming of Estonian companies and the fact that (roughly) profits of an EE company can remain untaxed while held with the company. (I do not want to say that it is a solution for you; but it can be inspirative.)

If you are concerned just about privacy / anonymity of your business, while OK with paying Czech taxes, then probably a US LLC in New Mexico or Wyoming is a cheap and easy solution for you.