Hi everybody,
This is my first post and I am new to incorporation and company formation, so please bear that in mind if I say something wrong.
I am currently researching about the available options in order to minimize the amount of taxes paid.
To be clear, I would like to stay within the law. I am not looking for tax evasion, but tax optimization in a legal way.
This means that I will pay the necessary taxes to have the business in legal terms. (for example VAT in Europe)
----------
Company
The company will be selling educational software and it will be a purely online business without any physical office.
The software is meant to be used by students/schools/universities all around the world. So, we sell internationally but we expect higher sales in English-speaking countries because all our material is written in English.
The product will be downloadable via our website and the full version can be unlocked by inserting a product key.
This product key can be obtain in 2 ways:
- Option 1: Single User edition (around 50-100 dollars - one installation)
- Option 2: University/School edition (around 1000 dollars - up to 35 installations, 1 year duration)
So, my customers can be directly students or other businesses (schools/universities).
I want to accept payments as: paypal and credit card.
I guess that it means that I will need a bank account with a merchant's account.
I would like it to be simple and without much hassle. I will be the solo owner.
Could you give me some recommendations on where I should locate the company? After reading online, BVI seems to be the suggested option for online entrepreneurs.
Maybe there are better options based on the description above? If you provide different options, can you also provide the trade offs between them?
What about the bank account? Why are Cyprus bank accounts so popular?
Last question: How long does the whole process usually takes?
------------------------------
Personal:
- I have Portuguese nationality
- I am currently living in Germany
I am considering moving to another country, preferentially warmer. For example, I read that I can get better tax treatment if I reside in Malta. Feel free to suggest residence options where I could reduce the tax burden.
------------------------------
Thanks
This is my first post and I am new to incorporation and company formation, so please bear that in mind if I say something wrong.
I am currently researching about the available options in order to minimize the amount of taxes paid.
To be clear, I would like to stay within the law. I am not looking for tax evasion, but tax optimization in a legal way.
This means that I will pay the necessary taxes to have the business in legal terms. (for example VAT in Europe)
----------
Company
The company will be selling educational software and it will be a purely online business without any physical office.
The software is meant to be used by students/schools/universities all around the world. So, we sell internationally but we expect higher sales in English-speaking countries because all our material is written in English.
The product will be downloadable via our website and the full version can be unlocked by inserting a product key.
This product key can be obtain in 2 ways:
- Option 1: Single User edition (around 50-100 dollars - one installation)
- Option 2: University/School edition (around 1000 dollars - up to 35 installations, 1 year duration)
So, my customers can be directly students or other businesses (schools/universities).
I want to accept payments as: paypal and credit card.
I guess that it means that I will need a bank account with a merchant's account.
I would like it to be simple and without much hassle. I will be the solo owner.
Could you give me some recommendations on where I should locate the company? After reading online, BVI seems to be the suggested option for online entrepreneurs.
Maybe there are better options based on the description above? If you provide different options, can you also provide the trade offs between them?
What about the bank account? Why are Cyprus bank accounts so popular?
Last question: How long does the whole process usually takes?
------------------------------
Personal:
- I have Portuguese nationality
- I am currently living in Germany
I am considering moving to another country, preferentially warmer. For example, I read that I can get better tax treatment if I reside in Malta. Feel free to suggest residence options where I could reduce the tax burden.
------------------------------
Thanks
