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max4

New member
I'm wondering which entity would work best for my e-commerce. Right now I'm living in Europe and I plan to live here for some more years. I wanna do things legally by paying my income tax, but I want easy regulations.


Can you give me some cons and pros both for the UAE and Seychelles, to help me decide where to create an entity? If possible I wanna use EMI.

I have found plenty of information on this forum, a very helpful community, but I'm still can't decide on this matter.
 

MiddleEuroAsia

opportunist.
Mentor Group Gold
If you're living in Europe, why don't you open a company in any other European country as Long as taxes is not an issue? Why don't you want to open a Romanian Micro company and you'll pay 1 or 3% for example if your company's turnover is less than one million Euros. Why not malta? cyprus?.
 

user9823671

Entrepreneur
If you're living in Europe, why don't you open a company in any other European country as Long as taxes is not an issue? Why don't you want to open a Romanian Micro company and you'll pay 1 or 3% for example if your company's turnover is less than one million Euros. Why not malta? cyprus?.
Because it doesn't work like that. Unless you can show substance to convince your local tax authorities, your business will be considered tax resident where you live / are tax resident). As OP is in ecommerce there is no substance they could show, as they are the business with no full time office / staff
 

MiddleEuroAsia

opportunist.
Mentor Group Gold
Because it doesn't work like that. Unless you can show substance to convince your local tax authorities, your business will be considered tax resident where you live / are tax resident). As OP is in ecommerce there is no substance they could show, as they are the business with no full time office / staff
ِAnd you think that you could escape the substance requirement by opening a UAE/Seychelles company without hiring any one to work in your company? of course not!

from what you have said, you still live in the EU and it doesn't matter where you incorporate your company offshore, if your company doesn't have real employees in or real substance, your company will be considered a tax resident in your home country in Europe because of the CFC rules.

There is no way around that unless you decide to move to a "tax friendly" country.
 

max4

New member
Yes most people will have to physically move themselves to the place they wanna incorporate in. You cant just incorporate in UAE while you live in EU.

So normally there isn't a way around this unless I move? How about Nominee services, or virtual offices, do these can solve this issue effectivly? I really wanna just wanna benefit from the more lightweight regulations and possible lower corp tax rate.
 
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user9823671

Entrepreneur
ِAnd you think that you could escape the substance requirement by opening a UAE/Seychelles company without hiring any one to work in your company? of course not!

Of course not, the same reason you cannot open a company in Romania is why you cannot open a company in Seychelles

from what you have said, you still live in the EU and it doesn't matter where you incorporate your company offshore, if your company doesn't have real employees in or real substance, your company will be considered a tax resident in your home country in Europe because of the CFC rules.

There is no way around that unless you decide to move to a "tax friendly" country.

yes, that is what I am saying. What I said is applicable to opening a Romanian company and a Seychelles company or where ever. You cannot open your one person business account in country (x) and assume your company is tax resident in country(x). Whether that is 0% tax jurisdiction, 5% 10% or 20%. The rules are the same. The business is tax resident where it is run from, which for a one-man-shop, that is where you are - typically your home country.

Unless you move or go the less than legal routes
 

user9823671

Entrepreneur
So normally there isn't a way around this unless I move? How about Nominee services, or virtual offices, do these can solve this issue effectivly? I really wanna just wanna benefit from the more lightweight regulations and possible lower corp tax rate.

No. You need to show substance that the business is not only RUN from this country but is MANAGED from there as well. You cannot get a virtual office, you cannot even rent a real office and put a secretary there. It has to be run and managed from.

I really wanna just wanna benefit from the more lightweight regulations and possible lower corp tax rate.
The above applies to tax rate. You won't (legally) be able to make use of lower tax rate. For lower regulation, that might possibly be an option. But you will have extra headaches with your local tax office
 

life

New member

these should help
 

EliasIT

Corporate Services
Entrepreneur
I believe the UAE is the better place for what is discussed here. As already explained, it will be impossible to open a PayPal account for a Seychelles company owned by an foreigner and without substance.

You will need to go the dark way as described in the mentor group gold forums if you want to stand a chance to get this work.

Compared to the costs you face setting up a UAE company compared to try to setup a Seychelles company as described in mentor gold may be worth it. If it fails, you still can effort to setup a UAE company, in other words, the lost is small.
 

AMD

Offshore Agent
It has something to look into the UAE but very expensive in setup costs if you ask me.
 
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