Question Singapore, Hong-Kong, Gibraltar, Irish LP

[Alenka]

Hello everyone!

I have internet business, my customers from EU and US zones. I consider Singapore, Hong-kong, Irish LP and Gibraltar as jurisdiction for my incorporation. I want to accept payments with PayPal and Stripe. Bank account - TransferWise.
I have a tax residence in Georgia, we have 0% tax on dividends from foreign companies.

Thoroughly approached Singapore, but there ACRA will be interested in my company cause I will pay 0% tax.

Maybe someone has experience in starting a company to accept PayPal and Stripe and pay 0% tax?

 

[JustAnotherNomad]

What about UAE? Stripe is available in the UAE now, I'm not sure about PayPal.
You'll want to make sure that your offshore company is not taxable in Georgia due to permanent establishment.

You should probably avoid pass-through entities, as they cannot pay dividends.

 

[Alenka]

What about UAE? Stripe is available in the UAE now, I'm not sure about PayPal.
You'll want to make sure that your offshore company is not taxable in Georgia due to permanent establishment.

You should probably avoid pass-through entities, as they cannot pay dividends.

UAE is pretty expensive for me currently.

Could you explain what you mean by "You'll want to make sure that your offshore company is not taxable in Georgia due to permanent establishment."? Georgia has no law on controlled foreign companies.

What you think options I should consider except UAE?

 

[Marzio]

Georgia has no law on controlled foreign companies.

True but if you manage your company from Georgia the place of effective management is Georgia hence you will have to pay Georgian taxes because it will be local sourced income.

 

[JustAnotherNomad]

Like @marzio wrote, CFC laws are irrelevant. CFC laws are about cases where the company is actually managed from abroad.
If the company is managed locally, most countries treat it as a local company - CFC laws are not required for that. Maybe Georgia doesn't, but you should check that.
Please ALWAYS check everything with lawyers, don't just listen to advice on the internet.

 

[Alenka]

Like @marzio wrote, CFC laws are irrelevant. CFC laws are about cases where the company is actually managed from abroad.
If the company is managed locally, most countries treat it as a local company - CFC laws are not required for that. Maybe Georgia doesn't, but you should check that.
Please ALWAYS check everything with lawyers, don't just listen to advice on the internet.

Thanks, of course I will.

True but if you manage your company from Georgia the place of effective management is Georgia hence you will have to pay Georgian taxes because it will be local sourced income.

Okay, so will be no reason to make a company without obtaining tax residency for the company in Singapore, Hong-kong or Giblartar for me? The only solution: Irish LP?

 

[Alenka]

What about UAE? Stripe is available in the UAE now, I'm not sure about PayPal.
You'll want to make sure that your offshore company is not taxable in Georgia due to permanent establishment.

You should probably avoid pass-through entities, as they cannot pay dividends.

Checked Dubai: As I understand I must pay 6k$ for all to esbalish there and I will have personal tax residence and company tax residency there? And I don't have ti live there? Only 1 time per 180 days to come? If it's so, it should be semi-fine for me

 

[JustAnotherNomad]

If you live in Georgia, you should talk to a good accountant/service provider from Georgia. They will be able to set everything up for you, so that it's tax-efficient and you end up paying somewhere between 0%-5% in taxes.
None of us is an expert on Georgian tax law, so it's all guess work otherwise. Work with an expert.

 

[Marzio]

Okay, so will be no reason to make a company without obtaining tax residency for the company in Singapore, Hong-kong or Giblartar for me? The only solution: Irish LP?

You should really take a look at this.

 

[JustAnotherNomad]

Also take a look at this thread:

Tax residence certificate for corporate and for individuals - What does it implies?

I need to register and offshore and I so far I explored the rules of a some jurisdictions like HK, Singapore, Dubai, etc. Some of them always mention the concept of "Tax residence certificate", but I don't understand how this actually applies and why not all the jurisdiction can provide it...

www.offshorecorptalk.com

 

[andrew28fl]

Hello everyone!

I have internet business, my customers from EU and US zones. I consider Singapore, Hong-kong, Irish LP and Gibraltar as jurisdiction for my incorporation. I want to accept payments with PayPal and Stripe. Bank account - TransferWise.
I have a tax residence in Georgia, we have 0% tax on dividends from foreign companies.

Thoroughly approached Singapore, but there ACRA will be interested in my company cause I will pay 0% tax.

Maybe someone has experience in starting a company to accept PayPal and Stripe and pay 0% tax?

Please read this thread, Georgia was discussed extensively: CFC rules in Georgia

From my understand, if you manage a company from Georgia, it is a Georgian company and it will pay Georgian taxes (15%). If your revenue is not over 300k GEL then you might qualify for 5% flat rate on revenue. Not sure about that amount or tax rate, please do your research. I think Georgia is good for tax free passive income (stocks, fixed deposits etc) but not for entrepreneurs.

 

[Pepa]

Hello everyone!

I have internet business, my customers from EU and US zones. I consider Singapore, Hong-kong, Irish LP and Gibraltar as jurisdiction for my incorporation. I want to accept payments with PayPal and Stripe. Bank account - TransferWise.
I have a tax residence in Georgia, we have 0% tax on dividends from foreign companies.

Thoroughly approached Singapore, but there ACRA will be interested in my company cause I will pay 0% tax.

Maybe someone has experience in starting a company to accept PayPal and Stripe and pay 0% tax?

I would create an LLC in New Mexico if I live outside the US...Where are you resident from?

 

[For Free]

What about UAE? Stripe is available in the UAE now, I'm not sure about PayPal.
You'll want to make sure that your offshore company is not taxable in Georgia due to permanent establishment.

You should probably avoid pass-through entities, as they cannot pay dividends.

Hi friend. Do you know the requirements to open Stripe account for UAE company?

 

[JustAnotherNomad]

Hi friend. Do you know the requirements to open Stripe account for UAE company?

No idea, but I would guess they're similar as for other countries supported by Stripe. Just contact them? Or talk to a service provider like @Fred .

 

[Alenka]

I would create an LLC in New Mexico if I live outside the US...Where are you resident from?

Georgia(country). Why LCC in New Mexico? Cost?

 

[Fred]

No idea, but I would guess they're similar as for other countries supported by Stripe. Just contact them? Or talk to a service provider like @Fred .

The only real requirement beside if the company documents is a local UAE Business Bank Account you want to receive the money to.

 

[JustAnotherNomad]

The only real requirement beside if the company documents is a local UAE Business Bank Account you want to receive the money to.

They don't check the personal residency of the director? I thought they always do that.

 

[Fred]

They don't check the personal residency of the director? I thought they always do that.

Of course. You can use personal UAE bank statement and this can be achieved without having a fulltime flat in the UAE.

Jumping from loophole to loophole still working very well.