SAAS Company Relocation with active subscribers and affiliates

[ilpablo]

Hi, so I have had two problems concerning myself recently.

I own two companies right now:
- LTD UK
- SRL Romania

I've been living in Romania since last year when I opened the company and I've got my personal residency here.

I offer both marketing services as an agency for my clients, and affiliate marketing, and now I'm going to promote my SAAS with a subscription plan through PayPal and Stripe. I was going to shut down my UK LTD and move everything to my SRL, but Romania has recently changed its tax rules becoming less attractive. Still a good solution tho, but this wasn't happy news tbh.

Also, they raised some other taxes on the personal level, and I had some other issues with the accountant that made me think twice about my decision.

I'm about to launch my SAAS and now I'm more concerned that will be the right decision to use my Romanian company for this purpose.

What happens if I will want to move somewhere else next year or so?

Do I need to open another company in the country where I'll relocate, or how can I move all the clients which have an active subscription and my affiliates?

Does anyone have experience with this matter?

Any advice?

Thanks

 

[Marzio]

Do I need to open another company in the country where I'll relocate, or how can I move all the clients which have an active subscription and my affiliates?

I'll suggest you to close the SRL and use the UK LTD instead, first for the prestige of a UK LTD versus a RO SRL. We are all accustomed to see SaaS as LTD or LLC (probably more LLC than LTD) so perception is the first thing.

Second thing is that by using your UK LTD you can access Stripe and PayPal even when moving to the country you wish (it has to have a DTT with UK though) but the end customer will always see a bill from your LTD.

It's not that simplty with a RO SRL, it's just too bureaucratic.

For example by managing your UK LTD from Malta you achieved 0% effective taxation at the corporate level and you will pay taxes only on income remitted to Malta. It's called resident non domiciled company.

Not keen to live in Malta?

Hire a director in Malta, move to Portugal and receive tax free dividends from your Maltese company.

To learn more about this setup ask @CyprusLawyer101 which already did one for one of his clients.

 

[ilpablo]

I'll suggest you to close the SRL and use the UK LTD instead, first for the prestige of a UK LTD versus a RO SRL. We are all accustomed to see SaaS as LTD or LLC (probably more LLC than LTD) so perception is the first thing.

Second thing is that by using your UK LTD you can access Stripe and PayPal even when moving to the country you wish (it has to have a DTT with UK though) but the end customer will always see a bill from your LTD.

It's not that simplty with a RO SRL, it's just too bureaucratic.

For example by managing your UK LTD from Malta you achieved 0% effective taxation at the corporate level and you will pay taxes only on income remitted to Malta. It's called resident non domiciled company.

Not keen to live in Malta?

Hire a director in Malta, move to Portugal and receive tax free dividends from your Maltese company.

To learn more about this setup ask @CyprusLawyer101 which already did one for one of his clients.

Yes, this is what I was also thinking about.
The LTD is way easier to manage and has better prestige perception from customers around the world.
The problem still relies on those POEM rules I mentioned in another post.
The structure you mentioned is by having a Cyprus LTD Holding + the UK LTD?
I think this is quite costly, isn't it?

 

[Marzio]

The problem still relies on those POEM rules I mentioned in another post.
The structure you mentioned is by having a Cyprus LTD Holding + the UK LTD?
I think this is quite costly, isn't it?

Nope, in this case PoEM works in your favour because you want that company to be managed from Malta to become tax resident in Malta. I highly suggest you to read the article about resident non domiciled companies.

https://corriericilia.com/publications/resident-non-domiciled-companies