Need help choosing correct jurisdiction + suitable bank account. Webhosting business.

[hostkap]

Hello!


I need some advise please. I'm planning to open an offshore company to work in Webhosting business and I'm not exactly sure which jurisdiction and what bank should I choose. I'm a Ukrainian resident (Eastern Europe), my servers will be located in US and EU and my clients are mainly from US and EU as well.


As you might understand - the main reason for registering offshore is to save on taxes.


What jurisdiction should I choose for the company and what bank account should I get (in which country)?


Main requirements are as follows:


- I need to be able to use 2checkout and ideally PayPal to process orders.


- Low or no income tax


- Ideally it would be a treaty jurisdiction. Something that is well respected and won't be on the US or EU blacklists.


I'd very much appreciate your advice.

 

[cyprusbanker]

From what I read a BVI or Cyprus company may be what you are looking for. BVI has 0% corporate Tax while Cyprus has 15% corporate tax and it seems that it can be even 0% for Cyprus.


I may have a few questions for you to start with, Is this a startup business? and do you already have a PayPal account?

 

[hostkap]

Yes - I'm just starting up. And yes, I've got a PayPal account in my name. I've registered a while back with my Ukrainian address just to make some personal payments.

 

[cyprusbanker]

Okay, perfect..so I assume you don't have any issues with PayPal then which is good. You will want to appoint nominess which are able to provide you with the proper documents that PP is requesting when you apply for an account with them. Or you may simply use 2co for the entire processing issue and a Cyprus bank account to receive the money.

 

[JohnLocke]

I agree with cyprusbanker, a BVI or Cyprus Company with banking in Cyprus and 2co.com may be what you are looking for, appointing nominees will almost be a must in order to get this setup.

 

[hostkap]

Thanks for the info guys! Could you please explain the situation with VAT? BVI and Cyprus are both part of the EU and therefore all my EU clients would have to pay VAT on top of the price of the service price? Is that correct?


I'd prefer to avoid that... if somehow possible of course.

 

[hostkap]

And another question I always had in mind when it comes to offshore companies. Nominees... Nominee directors and shareholders - how legal is that? I don't quite understand how this works. A person have no idea what my company does but agrees to become a director for a certain fee?


My business meant to be 100% legal and I don't want to get any problems with the law in any country.

 

[JohnLocke]

Thanks for the info guys! Could you please explain the situation with VAT? BVI and Cyprus are both part of the EU and therefore all my EU clients would have to pay VAT on top of the price of the service price? Is that correct?
I'd prefer to avoid that... if somehow possible of course.

A BVI Company does not pay any VAT and there are workarounds to avoid to charge VAT with the right setup for a Cyprus Company. If you just incorporate a Cyprus Company you have to charge VAT!.

 

[JohnLocke]

And another question I always had in mind when it comes to offshore companies. Nominees... Nominee directors and shareholders - how legal is that? I don't quite understand how this works. A person have no idea what my company does but agrees to become a director for a certain fee?
My business meant to be 100% legal and I don't want to get any problems with the law in any country.

A Nominee director and shareholder are two legit tools than can be used to anonymize a Company and to prove the Company to be controlled and managed in the current country. There are lot's of other reasons for why people choose a nominee director and / or shareholder.

 

[hostkap]

Thanks for clearing that up, Admin!


As I understand you can help me sort everything out for a certain fee? What's the best way to contact you?

 

[JohnLocke]

You can simply submit a ticket / e-mail here : More... so we will get it.

 

[alain]

In regards to banking you may pay attention to the following:


If you want to opt for the offshore banking then you need to keep in mind that it offer many opportunities and advantages for investors but at the same time you also have to keep the risks associated with offshore banking in mind.


You need to make sure that you get complete knowledge about the offshore banking if you want to go for it. It is important to select jurisdiction carefully for opening an account and choose the offshore banking institution which offer guaranty of the privacy, solvency and security and if you are satisfied that the bank is safe to deposit your hard earned money then you need to go for it and enjoy the true benefits of offshore banking at its best without any inconvenience.

 

[hostkap]

Thanks for the advice but I've read "It is important to select jurisdiction carefully" many times. Although nobody actually says how to do that


I'd really like to find a professional I could trust to get an advise from. Whenever I approach a company who helps register an offshore company - I get a list of options not specifically catered to my need. It looks like they are trying to sell me what they have instead of what I need.


I'm currently looking for a proper consulting company who can sell me a proper advise. If you can point me in the right direction - please do so.


Thanks in advance!

 

[alain]

May I ask, what's the problem with a BVI or Cyprus setup and banking in either Cyprus or Mauritius or Latvia?

 

[hostkap]

I'm not saying there is a problem. I'm just following your previous advise and trying to select a jurisdiction carefully. Therefore I'd like to make sure that for example BVI company would be the best for my needs. There are so many jurisdictions that I could spend ages studying each ones laws.


Instead I'd prefer a professional select everything for me taking into consideration all my personal needs, my country's laws, my business field and so on. I guess it won't be for free But at least I'll get a personalized solution.

 

[alain]

Hello!
I need some advise please. I'm planning to open an offshore company to work in Webhosting business and I'm not exactly sure which jurisdiction and what bank should I choose. I'm a Ukrainian resident (Eastern Europe), my servers will be located in US and EU and my clients are mainly from US and EU as well.


As you might understand - the main reason for registering offshore is to save on taxes.


What jurisdiction should I choose for the company and what bank account should I get (in which country)?


Main requirements are as follows:


- I need to be able to use 2checkout and ideally PayPal to process orders.


- Low or no income tax


- Ideally it would be a treaty jurisdiction. Something that is well respected and won't be on the US or EU blacklists.


I'd very much appreciate your advice.

I don't understand your answer, maybe it's just me.


But according to your initial post (quoted) and the requirements, a Cyprus company with Cyprus banking is what your looking at! What other answer are you looking for. I mean, you want lowest possible corporate tax, that's what Cyprus offer!


You want "Something that is well respected and won't be on the US or EU blacklist"! Well, Cyprus is part of the European Union and for that reason can't be blacklisted!


May I ask again, what are you actually looking for?

 

[hostkap]

Sorry, I should have mentioned that the company has to be outside the EU. Otherwise I'd have to charge VAT for the EU customers.

 

[JohnLocke]

You may either option for a Hong Kong or Panama company. Both are not blacklisted by either the USA nor EU. As far as I remember 2co is supporting both countries as well. Alternative look into Mauritius or check if 2co.com requires a SSN if you apply with a Delaware company..


Hope this helps a little, otherwise feel free to reply.