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Founding a company in a foreign country (formally)
I am at the stage when I want to formally move my business to a foreign country (for example, to take advantage of better tax conditions, fees, etc.).
Which country offers the easiest way to start a business, ideally to set up everything electronically (without unnecessary bureaucracy, where they ask you to show up physically. 🥲 – It feels like a pain in Europe)
The more information (and advantages), the better.
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André J
I would look into Estonia. Esp their: E-Residency Program which allows non-residents to start and manage an EU-based company online. I know a few EU citizens in my incubator programme that has done it. Im sure I could set you in contact with them if you have any questions, and to hear about their experience.
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I know about them but at least for me (as we do not have their embassy) I would have to travel to closest one into another country (they require physical appointment) @sentry_co – the closest one is 6 hrs from my country (only one-way).
@busmark_w_nika I dont have the impression that you have to go anywhere but online. Here is a step by step guide: (Hats of to le-chat, launched on PH today 😸) https://chat.mistral.ai/chat/e95...
It looks so cool that you used LLM for this info unfortunately it doesn't cover the fact you have to collect the card (physically) https://www.e-resident.gov.ee/be... – @sentry_co
@busmark_w_nika Right. Just get a friend to grab it and then mail it to you. I think since Estonia is so smooth regarding all the steps required. I think I would go with them. There might be additional steps in the future that needs to be solved, like keeping up with bookkeeping etc. And since Estonia is pushing accessible entrepreneurship so hard, they will surly have solved common issues that might arise: Vs other countries which would probably just send you into a spiral of hurt. That being said. I'm no expert. Hit me up on LI later if you want to investigate Estonia as an option, I can put you in a LI chat room with someone who runs their startup business through Estonia. She lives in the US atm.
@sentry_co LOL, today I spent in a live chat almost one hour with one Estonian bank so I can trade info about banking system, fees etc :DDD
Very good question. Going through that myself at the moment.
So..it depends on the type of business as well. Let's just assume general industry vertical like technology/digital business/service.
1. Estonia - Super good, everything is online, you can use XOLO.
2. Portugal
3. Malta
4. Spain (not low taxes)
5. Mauritius
6. Singapore
7. Cayman
These countries (from cheapest to most expensive setup) all cover full-online registration process. Bureaucracy you cannot skip, if you want to skip bureaucracy full, go CRYPTO <3.
Also, keep in mind that for all of those processes if you want to do them fully online, assume a minimum cost of 1,500$ . MINIMUM.
(e-residence, xolo) are good platforms to use for this stuff, and with backlinks to other sites you might find more useful options that i forget/dont know of.
Good luck <3
@busmark_w_nika so for me, I chose Spain, as an autonomo, because I live here and I have all the paperwork. If I was not here, I WOULD NEVER PICK Spain, because of the taxation. However, I will setup a second one, and I think I will pick Singapore. Im going there later this year to actually check everything there. If that does not work, probably Malta/Portugal/Estonia (they are pretty much the same).
@cryptosymposium I would also never pick Spain :DDD tbh :D because their taxes are ridiculous + also taxes paid in the Northern Europe. :DD I am trying to figure out that Estonian but I am not so sure because of their geolocation :D
@cryptosymposium @busmark_w_nika Most entrepreneurs who find themselves in Spain are looking for ways to leave, taxes are just unbelievable, making it much more difficult to start or survive any entrepreneurial project.
I'd suggest the US for reputation, quick and cheap set up, and low taxes. Everything can be done remotely, and there are really good agencies to help you with everything. See this quite comprehensive guide https://globalization.guide/us-l...
I had registered Skyica as an LLC in Wyoming remotely and all worked fine. But note that there are many agencies that charge quite excessive prices. If you like I can give you my recommendations on LI.
@konrad_sx Can you please message me about details and monthly charges for administration?
+1
We want to register in USA so that we can use Stripe as they are not onboarding new business in India. Can businesses get registered in USA electronically?
@gamifykaran Would like to know. Anybody from the US? :DD can you answer to us? :D
@gamifykaran @busmark_w_nika you can register a LLC fully online without having to go to the US at all (I think you can find companies that do it for you between $250 and $1500/2000 so you don't handle anything). Then you have to check if you aren't legally obliged by your country to still declare stuff that you earn through your llc, it depends on each country
@gamifykaran @annedevj do you have such kind of business? Could you please DM on Bluesky about that?
@gamifykaran @annedevj @busmark_w_nika You can do this all through Stripe Atlas, as far as I know. Bank account, the works. You'll need a brass plaque company address but Delaware is teeming with companies that will manage that for you.
Beware your first franchise tax bill! It's scary but always a bullshit number that makes no sense and is tied to an aspirational value for your company. Talk to an accountant when you get it and don't stress.
Registering as a Delaware C-corp is easy enough, investors like it. I'm based in Ireland but our company is a Delaware C-corp. Haven't registered an EU entity yet - given the uncertainties around AI in the EU, still unsure what to do there.
@gamifykaran @annedevj @markhamnolan I have heard about Atlas but I want to go into Wyoming specifically.
I would suggest Singapore ;)
Easy to start a company - just register online or find an agency; Low tax; Amazing weather if you consider moving there (well some think it's too hot). And the government is really business-friendly - they support startups with a lot of grants. The local VC and startup communities are very vibrant too.
I would say the USA is probably the best option in terms of their market size, access to funding and view on entrepreneurs. As a UK company depending on what stage you are at you can do a 'Deleware Flip" - This is a thread on that. https://harperjames.co.uk/articl...
@alex_bradley6 But I suppose that I need a residency / citizenship and show myself physically in the US. Or is there any exception?
You can try Stripe Atlas (https://stripe.com/atlas) if you want to start new company in the US. Everything is online, including virtual address with Stable (https://www.usestable.com/).
@junbaoyang Do you know someone who is proficient in international business? Because I have my clients from Europe, and I need to know what taxes I need to pay. Because there are some federal taxes etc.
I am helping a few of my clients set-up cost-center (subsidiary) in India. No, the taxes are not the most business friendly, but it's still a very feasible option. Why? Because even with 25-27% corporate tax, you save 40-50% on overheads. Before anyone starts with labour exploitation rant, this saving is after paying very competitive and comfortable salaries to the employees.
Do you have a personal experience with that one? @sonu_goswami2
@busmark_w_nika Not personally, but my first cousin is there and involved in the hotel and real estate business.
@sonu_goswami2 so she is physically in UAE, right? :D because at first, I would like to do it electronically without a need to travel there. :D
I recommend Hong Kong due to the following significant advantages:
Low Tax Rates: Hong Kong has a capped profits tax rate of 16.5%, with no tax on offshore profits, making it very attractive for businesses.
Quick Company Registration: The process of registering a company can be completed online in Hong Kong, typically taking just a few days, which reduces bureaucratic hurdles.
Open Business Environment: Hong Kong has a robust financial infrastructure and a high level of international connectivity, making it convenient for engaging with global markets.
No Foreign Exchange Controls: Businesses can freely move funds in and out, providing greater flexibility.
No Personal Income Tax: This is a significant financial advantage for entrepreneurs and investors.
Strong Business Network: As a financial and trade hub in the Asia-Pacific region, Hong Kong offers abundant business opportunities and resources.
For these reasons, Hong Kong is an ideal choice for establishing a business, especially for international entrepreneurs seeking convenience and tax benefits.
@liming_zhang Do you have an experience? I am just trying my luck lol
@busmark_w_nika I don't have any experience myself, but my family members have experience in this area, and they shared relevant information with me. Of course, I might recommend Hong Kong also because we are Chinese, and psychologically, it may be easier for us to accept it.
I am considering this option as well as but the US Wyoming or South Dakota. :D @liming_zhang
I founded my company in the USA, Delaware. Everything was done remotely, quickly, and fairly cheaply. So far, I have no complaints.
@elenat But I reckon that you need to be a citizen of the US? What are taxes in the US? Delaware specifically.
Many companies in Korea open branches in Silicon Valley, USA.
Ultimately, I think you have to succeed in the US market to be recognized globally. Or, using SaaS services, there are services that create overseas branches through the internet
@busmark_w_nika
@won_park I did my own research and found out that in my position it wouldn't be very beneficial. :/
You might want to look into the U.S. state of Delaware. You can find answers to your questions at this link: https://taxfoundation.org/locati... .
@ashish_parmar13 Is there any specific email I can ask on my case? Because I have a little bit complicated situation.
@busmark_w_nika We incorporated our US company with USFormation. Their email id is hello@usformation.com .
@arimitaz But I would be required be there at least 183 days.