Intermediary Company for EU - MENA setup

[inector]

Hey, a Russian friend of mine does B2B sales to Russia, EU & MENA (it's electronics, nothing restricted)

It's an okay volume of 750-1m per year.

He wants to get residency somewhere, but he is still Russian passport holder.

He is thinking of a chill country to store funds & operate (like UAE), but then how to trade with EU easily, needs to be another company somewhere. Some company that can collect payment from EU, and easily distribute them to UAE.

SG (high taxes)? HK? US?

 

[Marzio]

Georgia has a free trade agreement with EU (and China), has a lot of free‌ zones and 0% dividends distribution to UAE.

https://www.freetradezone.ge/benefits-free-trade-zone

 

[inector]

I might be‍ wrong, but Georgian banks are quite aggressive and unprofessional. Quite popular on the forum. 0%⁠ tax is really not the goal here, it's more about long-term.

Is it just better⁤ to pay higher taxes for reliability, like Singapore?

 

[Marzio]

If you‌ want to pay corporate taxes you are more than welcome to do that.

I posted‍ about free zones as an added bonus but the kicker is the free trade agreement⁠ between EU and Georgia (which is what you asked) and the 0% WHT on dividends⁤ distribution to UAE.

Maybe they are with those who do not understand the business model or don't⁢ have physical presence in Georgia.

 

[CyprusLawyer101]

Cyprus is the place you are looking for.

 

[inector]

Wise words, thanks Marzio, any lawyer‍ (to setup a company) recommendations of your choice? Will look through forum as well.
He's too afraid⁠ of EU sanctions, but it is indeed a good choice for now.

 

[Wills]

Bulgarian company with permitions and⁠ bank accounts is also option. Cyprus - best of it. A lot of russians there,⁤ good place for business if you find good tax and legal to help you.

 

[Forester]

Well, just my 2 cents...
Especially electronics‍ can fall into the framework of the restrictions very easily (double purpose goods).
Where is he residing currently, if you can share?
Well, and from︁ where the goods he is selling came from? Is he a producer? (=>where is a︂ factory?) Or he buys it somewhere? (=>where?).
IMO, this matters...

With all due respect to your knowledge︄ and experience, @CyprusLawyer101, I cannot agree. From what I witnessed, the situation there has︅ gotten worse (I mean re: Russian presence) and it is getting worse. (I don't like︆ it but it does not matter.) Or am I seeing it from the wrong perspective?︇
Re: Bulgaria: Aren't you afraid of changes induced by the current political︌ situation? The new government (and parliament) seems to be anything but pro-russian... (I'm really just︍ asking, I do not possess enough of information.)

 

[CyprusLawyer101]

What you are⁤ saying is true , politically the Cyprus government is leaning towards the west, however there⁣ is still a large Russian population in Cyprus living normally. He is mentioning looking for⁢ a jurisdiction to become resident - if he does becomes resident in Cyprus then he︀ will enjoy the tax benefits and be able to operate any corporate set up for︁ his business with enough flexibility and a chill out environment.

 

[CyprusLaw]

Despite the sanctions and despite the Government's compliance with them and its general tendency to lean︂ towards the West (we are in the EU so it's not like there is an︃ option), this does not affect someone who intends to relocate and reside in Cyprus. Even︄ if he chooses to reside in UAE and have a company in Cyprus it would︅ still work and he would still enjoy the tax benefits.

Also, Cyprus still has a︆ very large Russian community.

 

[Don]

Cyprus also has two jurisdictions.⁢ Might want to check out the northern side as well.
https://www.theguardian.com/busines...s-fuelling-a-building-boom-in-northern-cyprus

 

[inector]

Russia, he is just planning to get it rolling
For out of Russia trade, it would⁠ be China & Korea
Like Forester mentioned, just because there is a large community of immigrants⁣ in a country governed by EU laws, doesn't make it safer. They don't have advantage.⁢
Bulgaria is part of FATF now, plus EU, which is fully opposite of my question.︁

That's a great point. It︂ seems that CIT there is up to ~25%. Any workaround?

 

[Forester]

Well, just a tiny remark:
Hungary and recently⁠ Slovakia show that there is an option, IMO. But this is OT here, let's put⁤ it aside.
This is really nice to hear; and I am glad⁢ of it.

Well, in such︁ a case, if I were your friend, I would sit and have a look at︂ first, what climate, nature, culture and society fit me best. There are ~200 countries at︃ the world, and only ~50 of them adopted some sanctions against Russia and/or Russians.
So there is a plenty of options to choose for living and definitely, after deciding what︄ kind of country I like, I would be able to choose some of them to︅ run my business, too (to run a business is, in fact, possible in many, many︆ countries – or at least, you usually have more options 🙂 )

 

[lacomaco]

No problem‌ with bank accounts in Cyprus with Russian owners and possibly directors?

No problem with bank accounts in Cyprus or Bulgaria with⁣ Russian owners and possibly directors?

 

[Sols]

If they hold valid CY or BG residence permits, it's‍ usually fine (if everything else about the business is fine). If they are non-residents of⁠ CY/BG/EU or residents of Russia, expect a very low or no chance of success.

 

[AlicaFunk]

Sorry for reopening this old thread, but I⁢ noticed you’ve been active here recently and was hoping you might be able to share︀ an update on how things were resolved and what you ended up doing?

I have︁ a friend from Russia in a very similar situation to what you described back in︂ 2023. I’ve been looking into Cyprus as a potential option for him - he’s heading︃ there next month - but maybe you’ve found a better solution since then?