Setting up a company but where ?

Margeb

Member
Hungarian company sounds more complicated and risky compared to UK or what you think?
Yeah could be, I just saw it wa sa low tax place. It's possible to open a bank account remotely as well.

For a UK Ltd,it looks easy to set up but as I heard, it's not possible to open a bank account remotely.. unless with transferwise ?
 

moneyhoney

Building Trust
Entrepreneur
Mentor Group
I contacted Airwallex et they only provide a European IBAN for merchants accounts, if it's wire transfer then it's directed to DBS Singapore (no European IBAN then).
Oh so I misunderstood it as well, they aren't clear about it, cause they state:
Only SEPA (European local bank) transfers in EUR can be accepted.

So pretty useless service to be honest. All the services offer DBS Account, but this is the only one that doesn't state your name on the account holder.
 

Margeb

Member
For a UK company (like an Irish one) I read that your sort of need to have some "link "with UK business interests, like clients there etc..

However, I would not have any client there. In rapidformations it says:

"You should have a customer in the UK or have the intention to procure customers and properly promote and market your company."

I found that odd.
 

blueweb

Corporate Services
Business Angel
Mentor Group
"You should have a customer in the UK or have the intention to procure customers and properly promote and market your company."
I just setup the company and never cared about what they wrote. It works fine and all will be filed as with any other company I have :)
 

Margeb

Member
I just setup the company and never cared about what they wrote. It works fine and all will be filed as with any other company I have :)
Yeah, I thought that as well.
You seem to be well versed in UK companies :D.This might be the way for me if I can't find any other solution.

In your experience is it difficult to maintain a UK company ? Paying myself a salary ? (I have no employees)

Just to tell you a bit more about what I do, I just sell advertising on various platforms for my websites (+ do some passive affiliate with Amazon - no sale of physical products). Between 3 and 10 invoices are issued every month and the expenses just are the web hosting + paying freelance writers. The overall income is roughly 4000 to 6000 euros (which is not far from the net income as freelancer writers + hosting just cost around 400 euros / month).

I wonder what would be left after I do accounting and pay taxes etc..:D
 

Margeb

Member
Hi guys,

Just want you all to know so I have narrowed it down my choice to UK and Bulgarian company.

Both offer pretty much what I need. Bulgaria offers maybe more stability in these days of of uncertainlty (Brexit). Taxes are lower there but accounting + setup is more expensive than for a UK.

I will probably make a decision this week.

Have you all a great day
 

moneyhoney

Building Trust
Entrepreneur
Mentor Group
I contacted Airwallex et they only provide a European IBAN for merchants accounts, if it's wire transfer then it's directed to DBS Singapore (no European IBAN then).
Just to make this info complete: their assistance told me the opposite, the EUR IBAN can get SEPA wire transfers from business entities. Not sure what's right in the end.
 

Margeb

Member
Hi,

DId you ask for a HK registered company ? For a HK company all wire transfers are directed to HK DBS except if it's a merchant account.

At least that's what I have been told :)
 

moneyhoney

Building Trust
Entrepreneur
Mentor Group
Hi,

DId you ask for a HK registered company ? For a HK company all wire transfers are directed to HK DBS except if it's a merchant account.

At least that's what I have been told :)
Yes for HK entity.

I get your point and the panel is tricky (it mentions the merchant but at the same time it shows "ONLY SEPA ACCEPTED. No Wire Transfers". So, I'm not sure.

Support wrote me: "Global Account for EUR does accept local SEPA transfers. but receipts must be from business entities." - So....... I don't know :)
 

fshore

Trusted Member
Business Angel
You could also consider a US llc.
Can get transferwise borderless with eur Iban account.

UK companies are also good, but takes some more administration. You could only take a reasonable salary, any excess would be taxed as profit.
 

Margeb

Member
You could also consider a US llc.
Can get transferwise borderless with eur Iban account.

UK companies are also good, but takes some more administration. You could only take a reasonable salary, any excess would be taxed as profit.
Thanks. Let's say I make a month with sales of 5000 euros, I can take 4000 and leave 1000 euros, so only 1000 euros would be taxed ? Do I understand well ?
 

fshore

Trusted Member
Business Angel
Thanks. Let's say I make a month with sales of 5000 euros, I can take 4000 and leave 1000 euros, so only 1000 euros would be taxed ? Do I understand well ?
There is no specific rules about that. You should take what another unrelated party would take. You could also take more than you earn in the beginning and generate a loss the first few years, that can be offset for profit in the coming years.
It is paid gross, so should include what you would have paid in social insurance, pension etc, so can be higher than just the salary.
 

Margeb

Member
There is no specific rules about that. You should take what another unrelated party would take. You could also take more than you earn in the beginning and generate a loss the first few years, that can be offset for profit in the coming years.
It is paid gross, so should include what you would have paid in social insurance, pension etc, so can be higher than just the salary.
Being a non-resident, living in Thailand, I guess social insurance and pension would not concern me ? :)
 

Margeb

Member
You could also consider a US llc.
Can get transferwise borderless with eur Iban account.

UK companies are also good, but takes some more administration. You could only take a reasonable salary, any excess would be taxed as profit.
Which US LLC are you talking about ? I mean which state ? :)
 

fshore

Trusted Member
Business Angel
Many states are good options. Colorado is one of the cheapest, I belive it's 50 to register and 10 a year if you do it yourself. You also need an address there.

Also, have you thought about if you need a limited company, or if you can trade as a sole proprietor? If you are not tax resident anywhere (except maybe in theory in Thailand) then it could be possible to trade as a sole proprietor, if your clients are ok with that.
 

Margeb

Member
Many states are good options. Colorado is one of the cheapest, I belive it's 50 to register and 10 a year if you do it yourself. You also need an address there.

Also, have you thought about if you need a limited company, or if you can trade as a sole proprietor? If you are not tax resident anywhere (except maybe in theory in Thailand) then it could be possible to trade as a sole proprietor, if your clients are ok with that.
Hi thanks for your comment. Actually, I would LOVE to be a sole trader / proprietor but can't find any place where they accept non residents. In the UK, Ireland, you need to be a resident. You're absolutely right that a Limited is not needed here.
 

fshore

Trusted Member
Business Angel
Hi thanks for your comment. Actually, I would LOVE to be a sole trader / proprietor but can't find any place where they accept non residents. In the UK, Ireland, you need to be a resident. You're absolutely right that a Limited is not needed here.
You can just use your Thailand address if the client accept it.
 
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