Cheapest EU country to be IOR

[Asense]

I am looking to set up a branch in an EU country to be the Importer Of Record for physical goods for e-commerce, not dropshipping but lcl. Since Brexit, need a more affordable solution than these brokers who act as an IOR.

So looking for a country that is easy to set up and low accounting fees/maintenance. Any suggestions? Cheers.

 

[MT760]

Netherlands.
To setup a BV (Ltd) cost you 500 euros and 5 days. Comes with a VAT # automatically. Be prepared to pay corporate taxes (15% for the first 245,000 and 25% above) as dodging this is quite hard. Banks will work with you, but as long as you allow them to KYC you. CRS-s**t is in place, as well as an UBO register. Other than that, doing business here is relatively easy with a good infrastructure.

Buying an existing company is an attractive alternative.

 

[Pup]

In EU no other solutions CRS, KYC and UBO. But Netherlands Is a good solution

 

[Pup]

And what about a branch of and UK entity ? VAT could be a problem ?

 

[Asense]

How is the upkeep for the Dutch Co? I would have 10 to 20 transactions for the year. Accountant needed? You favor it over Ireland? Thanks.

I'm not worried about the CRS and TAX ect, this is strictly to import the goods, and sell it back to the non EU Company the company won't make any income or a nominal amount.

 

[MT760]

Netherlands over Ireland? Not really a specific reason. In my view, Ireland will have a hard time soon, due to Brexit. Netherlands is extremely (too) stable, they all talk English, is an escape for lots of big corps that fled London, seems to be #4 on the list of off shore countries(?) and it has a very liberal stance on many things, except for spitting on the ground and tax-evasion.

With such a low number of transaction, you won't need an accountant. However, you will have to do a bookkeeping and fill in the tax-form each year. Bookkeeping is done through a program that cost you 15 euro a month and it spits out the correct calculations for the tax man. Best thing to do is contact an accountant for a quick setup or simply buy an aged company. You can have these from young ones for 5K to aged co's for 25K. Some of them with deductible losses on board and some with big agio's waiting to be monetized. It depends on what you're ready to pay for it.

Turnover as an IoR can be low, or super high. Cashflow volume is important for banks.

 

[CyprusLaw]

Asense said:
I am looking to set up a branch in an EU country to be the Importer Of Record for physical goods for e-commerce, not dropshipping but lcl. Since Brexit, need a more affordable solution than these brokers who act as an IOR.

So looking for a country that is easy to set up and low accounting fees/maintenance. Any suggestions? Cheers.
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Have you considered Cyprus? Incorporation of company/branch is quite straightforward and quick. Legal and accounting services are of very high quality at a much lower cost compared to other jurisdictions. Corp tax is at 12.5% - could have more tax incentives depending on activities and structuring.

 

[Pup]

CyprusLaw said:
Have you considered Cyprus? Incorporation of company/branch is quite straightforward and quick. Legal and accounting services are of very high quality at a much lower cost compared to other jurisdictions. Corp tax is at 12.5% - could have more tax incentives depending on activities and structuring.
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And what about EU VAT ? Is it an easy process ?

 

[CyprusLaw]

Pup said:
And what about EU VAT ? Is it an easy process ?
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With respect to VAT, this depends on the structure of sales, purchasers etc. Again this would be structured on the basis of the accountants advice, which again the cost for such services is very low in Cyprus.

 

[andrewb]

Asense said:
I am looking to set up a branch in an EU country to be the Importer Of Record for physical goods for e-commerce, not dropshipping but lcl. Since Brexit, need a more affordable solution than these brokers who act as an IOR.

So looking for a country that is easy to set up and low accounting fees/maintenance. Any suggestions? Cheers.
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I would suggest Romania . Maximum 3 % state tax if you do not have employees . If you have employees on a Romanian company you pay 1 % .
These taxes you calculate from your revenue , not from your profit . I am talking on a maximum of 1 mil. eur / year revenue

 

[Asense]

andrewb said:
I would suggest Romania . Maximum 3 % state tax if you do not have employees . If you have employees on a Romanian company you pay 1 % .
These taxes you calculate from your revenue , not from your profit . I am talking on a maximum of 1 mil. eur / year revenue
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Have you opened up a Romanian company? If so, what provider did you do it with?

 

[andrewb]

I'm a Romanian citizen so I did not need a provider, i opened in my own. Are you an EU citizen ? You can do it also in your behalf

 

[Asense]

andrewb said:
I'm a Romanian citizen so I did not need a provider, i opened in my own. Are you an EU citizen ? You can do it also in your behalf
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Thanks for the reply, Yes EU, can I open it remotely? What docs would I need? Or if a foreign company will own it? What would change. I'm not too concerned of the hire tax bracket of the SRL either.

 

[andrewb]

You cannot open remotely . Yes, a foreign company can own it . But you need to hava a visit in Romania to open it