Software company where?

[andreas]

Before I go and incorporate this new business activity in Cyprus again I would like to discuss with you Guys where you think would be the best place for my new Software Company.

We have developed a brand new product that provides Google advanced analytics for SEO Companies and corporate websites. Our target markets are Europe and the USA

We will need a Merchant Account and PayPal to accept payments considering to sort this out with an Stripe and 2chckout account but not sure yet.

What country / jurisdiction would you think is the best for this type of business?

3rd world countries are defiantly not an option.

 

[redeye]

Go with a Cyprus company formation. I can't see where else you want to incorporate your business if you are not in an EU country that already has great opportunities for entrepreneurs where Ireland and Malta are the only two except Cyprus!

 

[andreas]

Do you have any other suggestion other than Cyprus, Malta and Ireland? also what are the costs to incorporate a business in Ireland does someone has a link to a reliable agent that we can trust in Ireland?

 

[negon]

I know these guys from the past - Step by Step Guide to starting a business in Ireland

 

[JohnLocke]

Ireland seems to be a great alternative to all other jurisdiction in Europe!

 

[negon]

Ireland seems to be a great alternative to all other jurisdiction in Europe!

Really, I think after the changes in the tax policy there it makes no sense. I know for years ago that company incorporated at this time would not have to pay any tax also not in the future. This I understand is not applicable any longer.

 

[dotbloup]

Ireland has a hidden 10% withholding tax for non resident individuals. An administrative task is necessary to avoid the 10% withholding tax.

Dividend Withholding Tax - General Information Leaflet

If you live in a EU country or a country with an agreement with Ireland, you have to get the tax exemption form from the Irish revenue, go to your Tax authority ask them to stamp it and send it to the Irish revenue.

For instance, if you live in the US, you get the paper you have to go to the local IRS office with the Irish tax exemption, ask them to stamp it and send it back to Ireland.

This 10% withholding tax makes a big difference with Cyprus. I guess that's why so many American people go for Cyprus rather than Ireland.

If you live in a country with no double tax agreement with Ireland, You will have to pay 10% tax on your dividends when you transfer it.

 

[dotbloup]

Also, by the past, i don't know if it is still true, Bank of Ireland use to bill you their investigation about you to open a bank account. And because of that that could take a while. They ask for a relationship with ireland. This can be a little office, a warehouse, a closet, business partners, providers, websites, servers. Keep in mind more and more banks ask for it.

After reading the posts from @Admin and @auric i have the very strong feeling, that the bank opening process in Ireland is as painful as in Cyprus right now.

The biggest issue with Ireland is just like for the UK, it is bank opening.

 

[IncNext]

Well if your target market is - besides Europe - the US, I'd suggest to incorporate separate company there. It's true that you can operate in the US under your European company (whether incorporated in Cyprus or Ireland as others suggested mentioned) it's a big headache - just think about taxing for example - and that's probably not a biggest problem - mostly smaller US companies don't like to make business with and are suspicious about companies from outside the US. They simply ask themselves why a company doing business in the US isn't also incorporated there. Incorporating in the US is very simple and if you pick a state like Wyoming (Incorporate your startup in Wyoming! ) or Delaware it's really no problem and it will definitely pay off. Incorporation costs are really low, only thing you have to keep in mind if you're not from the US is that you'll probably will have to visit the US to make a bank account for your company - it's almost impossible to make it online.

We'll be happy to help you incorporate in the US!

 

[dotbloup]

Well if your target market is - besides Europe - the US, I'd suggest to incorporate separate company there. It's true that you can operate in the US under your European company (whether incorporated in Cyprus or Ireland as others suggested mentioned) it's a big headache - just think about taxing for example - and that's probably not a biggest problem - mostly smaller US companies don't like to make business with and are suspicious about companies from outside the US. They simply ask themselves why a company doing business in the US isn't also incorporated there. Incorporating in the US is very simple and if you pick a state like Wyoming (Incorporate your startup in Wyoming! ) or Delaware it's really no problem and it will definitely pay off. Incorporation costs are really low, only thing you have to keep in mind if you're not from the US is that you'll probably will have to visit the US to make a bank account for your company - it's almost impossible to make it online.

We'll be happy to help you incorporate in the US!

It is easy to create a company in the US and open a bank account in the US but what is required would be to know how much tax + social contributions a US company director/shareholder will pay. Tax forecast is not the kind of service we see a lot.

 

[IncNext]

It is easy to create a company in the US and open a bank account in the US but what is required would be to know how much tax + social contributions a US company director/shareholder will pay. Tax forecast is not the kind of service we see a lot.

It is advised for foreigner to form a C-Corp (because LLCs are pass through entity which means that income is taxed by the members of that company - which can be tricky) - C-Corp's income is taxed normally. Then you have to get the money of the company somehow. You can't employ yourself and pay a salary since you don't have a work permit, so the easiest way is to pay yourself a dividend - this is absolutely okay - you're 100% shareholder. Then you simply tax that money in your home country as some side personal income or what (depeneds on the country) and you're good

 

[dotbloup]

Just to talk again about Ireland. Here is a link to the form required to open a business bank account in Ireland at AIB. that's a lot of information to provide !

https://business.aib.ie/content/dam.../current-accounts/account-opening-company.pdf

 

[orangeye]

The world is going insane. And who do we thank for this, the USA and Russia! You can't even go into a normal local bank any longer and open an account without to have the feeling that you are a criminal or you want to do something criminal.

Thankfully we have PayPal, Neteller, Bitcoin and the connected service there and hopefully we soon will see the banks suffer to get clients and the governments see that the economy is moving to such service mentioned above.

I would not suggest anyone to incorporate in the USA unless you are doing business there and it is a REQUIREMENT to have a US company there to do business. If you do, forget all about privacy and any "not normal" business activity if you want to avoid troubles.

 

[andreas]

Thank you all for suggestions and reply. The US Company formation sounds appealing to me and my business but I'm not really ready to go that route as things are now.

Ireland sounds good but after the sheet @dotbloup posted it's also not viable for me.