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Where's a suitable place (minimal reporting) to incorporate if no privacy is needed?

venoxa5019

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May 23, 2020
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Hi, would like to seek some advice from experts here - for small time ecommerce sellers who are non-residents of EU and US, where is the best place to incorporate a company/partnership?
We sell physical goods, nothing shady or related to pharmacy/adult/replica. While incorporating locally is the best, we can't do that due to some restrictions like non-compete clauses;

We're looking for a jurisdiction
-with minimal reporting (US and UK reporting requirements are somewhat extensive, especially with fines if we forget to file in time)
-low cost registration and yearly maintenance
-access to low risk credit card payment providers (this seems to rule out seychelles)

tax optimisation and privacy, while good, is not required

Thank you in advance
 
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-with minimal reporting (US and UK reporting requirements are somewhat extensive, especially with fines if we forget to file in time)
UK Reporting are expensive????
Not sure based on what you say this (and it would be nice to get evidences) but UK it's very simple, easy, fast and cheap in terms of reporting.
You can do EVERYTHING online and axctually filing the tax reporting can be done at once for Company House and HMRS.
Even more, if you have a Non-Resident Company status, it takes 5 minutes and maintenance cost is only 19GBP/Year.

Would suggest you to look again at UK as possible option

Can't say the same about US as I'm not experienced.
 
hi you're right that UK companies reporting and maintenance is low cost;

But the reporting requirements are still quite comprehensive/extensive, are there other jurisdictions with simpler reporting requirements?
 
If you are qualified (no Permanent Establishment or not ETBUS) to pay no taxes in the US, the only thing you need to file is Form 5472, which is a very simple document to file to the IRS.
yeah a us llc seems good; the tax laws in us seems a bit vague though, the issue of nexus and etbus has not been completely settled, every person has a different view; and irs can threaten to fine up to 25k for 5472 that is not filled properly;

a UK LLP seems good, but there's the additional hassle to form a dormant UK company for a single member llp, and the yearly accounts return is not as simple as 5472

ideally a good thing would be something like a us llc, but less heavy handed compared to the IRS
 
The issue of taxation of non-U.S. persons is actually not that complicated. If your country has a tax treaty with the US (which is the case for most European countries), everything is even clearer

It is just that a lot of US accountants are US-centric, they are not familiar with international taxation issues. Try to chat us up on our website and we will provide you crystal clear guidance.
 
hi you're right that UK companies reporting and maintenance is low cost;

But the reporting requirements are still quite comprehensive/extensive, are there other jurisdictions with simpler reporting requirements?
Sorry to say but this is WRONG!!!
The only document you need to fill as Non/Resident LTD is the SA700 and a filing fee of 19 GBP.
The SA700 is a 7 pages document that can be filed easily also by a non/accountant person as me.
 
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@uplana / @Paul77
guys, please, if you are not sure about the things, do not share information which are not correct.
UK regulations are clear and straigh forward.
Once the NON-Resident status is obtaines (and if you have what is requested, it's matter of minutes by filling an online request), no accounting, or reporting is needed. Only filing a simple form confirming that you still have the NON-Resident status.
And this is both not expensive and not extensive.
 
To be clear if your UK LTD is considered non resident you will not have to do any accounting at all?

Example. I live in Spain but setup a company in the UK, the company is registered non resident since I'm in Spain, so I will not need to do any accounting at all because I will have to be taxed in Spain, how will they know how much tax I will have to pay?
 
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@uplana / @Paul77
guys, please, if you are not sure about the things, do not share information which are not correct.
UK regulations are clear and straigh forward.
Once the NON-Resident status is obtaines (and if you have what is requested, it's matter of minutes by filling an online request), no accounting, or reporting is needed. Only filing a simple form confirming that you still have the NON-Resident status.
And this is both not expensive and not extensive.
Hi cangaroo thank you for your clarification

Is it hard to file for the SA700? Would HMRC require us to prove that we are a non-resident uk company? Would tax residency from another jurisdiction be provided? Does this only work for countries which have DTAA with the UK or it is applicable to tax-havens like Bermuda and Cayman as well. I heard that it is hard to apply for bank accounts if it is a non-resident UK company, is this true?
 
To be clear if your UK LTD is considered non resident you will not have to do any accounting at all?

Example. I live in Spain but setup a company in the UK, the company is registered non resident since I'm in Spain, so I will not need to do any accounting at all because I will have to be taxed in Spain, how will they know how much tax I will have to pay?
To apply for Non- Resident status is NOT enough to live outside UK.
You must have NO permanent establishment.
Please, check other posts where I shared alredy the link to what it takes to be eligible as non-resident ltd in the UK.
Once you are non-resident ltd, you pay zero taxes in the UK (and yes, ZERO means ZERO).

Whatever and how you decleare in Spain is not my expertise (and business).
For this, better asking a Spanish accountant.

Again (and this is valid for all), don't give wrong or not correct information without knowing the fact (and details).
Study before shooting, and especially about UK Ltd, there's a lot of material available on the UK Gov webiste.
 
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Hi cangaroo thank you for your clarification

Is it hard to file for the SA700? Would HMRC require us to prove that we are a non-resident uk company? Would tax residency from another jurisdiction be provided? Does this only work for countries which have DTAA with the UK or it is applicable to tax-havens like Bermuda and Cayman as well. I heard that it is hard to apply for bank accounts if it is a non-resident UK company, is this true?
These are tons of questions and honestly, it goes beyond the "free" advertise i can give you.
Just to answer 2 questions you made:
- i'm able to fill in the SA700 easily and i'm sure that i'm no more intelligent or clever than you ;-)
- I'm NOT a UK resident, I have a UK LTD with non-resident status and I've a bank account with 2 currencies (EUR a GBP)
 
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These are tons of questions and honestly, it goes beyond the "free" advertise i can give you.
Just to answer 2 questions you made:
- i'm able to fill in the SA700 easily and i'm sure that i'm no more intelligent or clever than you ;-)
- I'm NOT a UK resident, I have a UK LTD with non-resident status and I've a bank account with 2 currencies (EUR a GBP)
haha thanks. just curious. no worries.
 
Interested in offers on setting up a UK LTD, especially if that can be done with non resident status in one process.

Had one before as well as different sorts of companies in Europe & one in Asia, just too tired of all that - its all gone with the scamdemic. So it would be very low turnover the first years...
 
Interested in offers on setting up a UK LTD, especially if that can be done with non resident status in one process.

Had one before as well as different sorts of companies in Europe & one in Asia, just too tired of all that - its all gone with the scamdemic. So it would be very low turnover the first years...
Not sure if this was for me.
Anyway, will add @sujoe to the reply.

Before establishing a company of any kind and in any place, you'd ask yourself "do I really need it"?
Let me give you an example.
One of my customers based in the EU, needs to receive invoices to reduce his turnover and pay less taxes, and move money out of the country.
He asked my view about creating a Non Resident UK LTD with nomineed Directors and all other needed items to protect his privacy.
I told him that all depends on how much money we were talking about.
If it's lower than 10.000€/GBP/USD per month, then NO, IT DOESN'T MAKE ANY SENSE.
I proposed him to be his middle-man, making invoices for my services, keeping a % of the transaction, and returing him the money with a nice debit card he can use wherever he wants, also capable of cash withdrawals.
Result is that he is using this approach not only to reduce revenues but also when he needs to invoice customers outside his country.

The meaning behind is that is not always worth or needed to create a new company just to be proud of saying "I've a company in that country".
Be wise and consider all aspects (laws, taxes, local support needed, in my country effects and exposure, etc. etc. etc.).
 
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Well that type of setup sounds perfect for sure!

After setting up & running lots of companies I've arrived at the conclusion that at least part of what I do in the future will be informal and based on full privacy ONLY, likely connected with new privacy coins.

I've been discussing these things at length with my only remaining colleague, we do have a certain foothold left in Scandinavia for customers, but I'd prefer to ditch that market altogether. He has a company in Estonia, so we could use that for "official" customers that need to see some track record & then build the new in an informal way :)
 
Again (and this is valid for all), don't give wrong or not correct information without knowing the fact (and details).
People here share what they think they understood from reading here and there or even from an advisor. If something is wrong then we are happy to have you here to correct it.

Your input is much appreciated :)

As you already announced to be an service provider why not get your own signature, so you can get all the stupid guys in as customers!
 

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