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OffshoreSeychelles
UK Ltd with emi bank account

Starting up low-capital agency - First steps?

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GooseM

New member
Hello! I am looking for a decent low-capital tax optimization setup.
I am operating a company making a small amount. It is about $1000/month in net profit.
The model is quite simple; It has server hosting, and some freelance agents that get paid commission.
I am an EU resident, and so are the freelancers.

While I plan on expanding this operation to a lot more (I estimate around $20 000/month before the year is over) I have the following worries:

A lot of the better tax-structures has a large cost of setting up and maintenance, so I see no point in doing it until I can justify the cost. I am looking at Dubai or RAK. Although I have heard from industry acquaintances that this type of agency+IT service company, Hong kong might be better. Those worries are however for later, when I make more than a hundred thousand a year in profits from this company.

My country of residence has quite heavy taxes, so I wish to make it more hidden until I can invest in accountants and lawyers. I am considering some low-fee setup that will provide a basic protection temporarily.
One set-up that seems tempting is: Estonian E-residency + Payoneer registered through that E-Company.
This way I have multiple layers between the money and my local tax entity, and they will need an actual warrant and case, instead of just passively logging it. I do plan on declaring the income later on, however, just to be safe. (Paying thousands of euros when you make a hundred thousand is no big deal, but when it is a majority of the company capital, it does matter to me.)

The final question is this:
Has anyone had any experience with low-fee structures for low-capital companies?
 

cosmo

Offshore Agent
Entrepreneur
First of all welcome to the forum.

RAK start costs 15K euro recurring costs 15K euro each year. Compared to Cyprus non resident which is EUR 4K startup costs and EUR 2K renewal costs every year RAK is shit. For large corporation which really making some big money RAK may be a possible solution. For small corps. go with Cyprus which can be freely extended to something bigger or different without tax complications.
 

GooseM

New member
First of all welcome to the forum.

RAK start costs 15K euro recurring costs 15K euro each year. Compared to Cyprus non resident which is EUR 4K startup costs and EUR 2K renewal costs every year RAK is shit. For large corporation which really making some big money RAK may be a possible solution. For small corps. go with Cyprus which can be freely extended to something bigger or different without tax complications.
Thank you!
Good points with the high fees for RAK.
I have heard rumors that Payoneer does not like / accept Cyprus companies and bank accounts anymore. Do you know if there is any truth to this?
 

TurnedToRobot

Entrepreneur

cosmo

Offshore Agent
Entrepreneur
Thank you!
Good points with the high fees for RAK.
I have heard rumors that Payoneer does not like / accept Cyprus companies and bank accounts anymore. Do you know if there is any truth to this?
sorry no, but it won't surprise me if that is the truth!
 
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