Best way to set up an App publishing company?

[offber]

Hello,

We have an app developer company in a free zone in Turkey with many tax advantages. (Only for IAP though, not for Admob revenue.)

The problem we face is paying additional withholding tax for ads. Ads are a huge expense and we want to avoid this additional %20 percent if possible.

What is the best way to incorporate a publisher company in this case? The publisher company will collect payments from Apple and Google, pay ads, servers etc. and send the remaining to our developer company in Turkey. Is this kind of setup possible? We have a similar setup in Northern Cyprus now with reliable banking and everything, but as of 2025 we won't be able to collect payments from Google as they won't accept Northern Cyprus for a Google play developer account.

Thank you so much for your help.

 

[JohnnyDoe]

Is it possible to setup a Cyprus+Northern Cyprus structure? @CyprusLawyer101

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[offber]

We were thinking about that at first but then lost on the way with IPBox etc. If we go with Cyprus company, I may not need Northern Cyprus company. (It's an additional 5000 Euro a year.)

But will this publisher + developer company structure work with Cyprus?

 

[JohnnyDoe]

Are you using Northern Cyprus just with Google?

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[offber]

JohnnyDoe said:
Are you using Northern Cyprus just with Google?
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Yes. Apple never accepted Northern Cyprus as merchant, we found a work around with Google. But as of 2025, Google won't be possible.

 

[JohnnyDoe]

offber said:
Yes. Apple never accepted Northern Cyprus as merchant, we found a work around with Google. But as of 2025, Google won't be possible.
Click to expand...

Did you try to present the company as a Cyprus one? Given that only Turkey recognizes Northern Cyprus.

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[offber]

JohnnyDoe said:
Did you try to present the company as a Cyprus one? Given that only Turkey recognizes Northern Cyprus.
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We tried to present the company as a Turkish one. Many in Northern Cyprus use a Turkish postal code. It worked for Google until now. But now they request a verification and I expect we will fail in this verification process.

 

[JohnnyDoe]

offber said:
We tried to present the company as a Turkish one. Many in Northern Cyprus use a Turkish postal code. It worked for Google until now. But now they request a verification and I expect we will fail in this verification process.
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How does the verification process work?

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[offber]

JohnnyDoe said:
How does the verification process work?
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I have no idea. We selected a deadline from their system. Google will get in contact with us a few weeks before this deadline.

 

[CyprusLawyer101]

A Cyprus company could be set up to handle the marketing part. Banking mqy not work in Cyprus with payments to Turkey, but its possible to maintain banking abroad. We can set this up for you. Lwt me know and I can PM you to discuss further.