Canadian living in Cambodia. Need jurisdiction for e-commerce company (software) recommendations.

[dogprince]

Hi guys,

I'm Canadian. I live in Cambodia but travel to other countries frequently. I'm digital nomad. I'm not a Canadian tax resident because I have no residential ties to Canada.

I'm setting up a new business selling digital software online (all direct downloads) to a worldwide audience (but mainly Europe, the UK, and the US).

I'm wondering what the current best jurisdiction to set up is. I need a place that is professional and stable and doesn't change the rules every month. Ideally, it would have easy accounting standards and offer services in English.

Essentially, I just need a jurisdiction where I can process PayPal payments with minimal fuss. I don't even need a bank account. I just need PayPal.

Cambodia isn't ideal for this.

I plan to keep no money in the company; I take all profit as salary.

I'm thinking about the Estonia e-residence program and running my company through there.

But maybe there are better options than Estonia. I'd rather avoid the Eurozone as much as possible.

Do you have any ideas? 've been reading through the forums, but they're just a fog of often contradictory advice and opinions, often outdated. It's hard to make sense of anything.

I thought about Hong Kong, but I am not too wild about HK. Looking for something else. Perhaps the Middle East? UAE?

 

[JohnLocke]

@Don @CyprusLawyer101 @CyprusLaw - I believe some of them are able to help you with‌ a setup in either Estonia or Cyprus or other good places for your business.

 

[Marketint]

Singapore or Hong Kong can be good options if you live in Asia.

I don’t‌ know if your choose of jurisdiction matters for your clients. For some business it’s now‍ hard to deal with Europe banks if you use for example a bvi.

Check out⁠ osome, sleek, statrys.

I avoid the eurozone at all cost. Maybe bvi is a option⁤ but I am not sure if you can onboard by PayPal with a bvi.

 

[Don]

Do you have developed your own software?
It seems like a︉ business model where you can make a lot of difference with how you set everything︊ up.

 

[dogprince]

I make the software on my laptop along with some other programmers I hire. I‌ sell the software via my own website. There's nothing physical. It's all digital.

And it's‍ 100 percent legit software. We're not doing P**N or anything grey area. It's normal everyday⁠ software.

Jurisdiction means nothing to my customers.

Customers are ordinary people︂ all over the world who download the software They wouldn't care where the company is︃ located.

 

[daniels27]

@baltic7 what did you come up with? I think he does not need any economic‌ substance. Maybe Singapore then if he is under the audit threshold? Otherwise Channel Islands? Or‍ maybe BVI+US SMLLC?

There are always many opinions and they differ depending on preferences. Some⁠ want to avoid audits others need economic substance or the company managed elsewhere where they⁤ live.

Then the Cyprus gang and the UAE gang is pretty active on this forum,⁣ while there are no such sponsors from Singapore or Hong Kong.

 

[TheCryptoAnt]

A simple US LLC will work just fine for you.︀

Too complicated and︂ expensive really.

 

[dogprince]

A simple US LLC will work just fine for you.

-- The Problem is getting‌ a US-based PayPal account. Getting the LLC is easy. However, getting the ITIN, etc., that‍ PayPal wants can be problematic.

 

[daniels27]

Even getting an SSN will⁠ be cheaper then paying one year incorporation agent elsewhere. ITIN is cheap. Really.

 

[Don]

It's a digitally supplied service, and in 2024, you want to comply with⁣ VAT, especially in order to maintain payment processor accounts such as Paypal, which will report⁢ your turnovers to EU Cesop.
https://taxation-customs.ec.europa....lectronic-system-payment-information-cesop_enIf you have EU customers, using an entity based︀ in the EU could be easier; e.g., Estonia could be a decent choice.

It would︁ be sensible to establish a minimum of substance, like a local director, to facilitate access︂ to banking and payment processing and reduce tax risks, especially if your personal tax situation︃ might change sometime in the future.

a US LLC would then need to register for IOSS in the EU or︇ get VAT registrations in each country that it sells to.
The days of getting away︈ with not paying VAT in the EU with a US LLC are pretty much done.︉
In that sense, an EU entity could be more straightforward to operate.
Also, an entity︊ with actual tax residence could be better, especially if you happen to have any B2B︋ sales as some jurisdictions would impose withholding taxes to payments done to US LLC-s which︌ cant provide tax residence certificates.

Still US LLC has its merits, especially if you are︍ successful with opening bank accounts in the US.

 

[TheCryptoAnt]

Theres a bunch of CPAs⁠ in Fiverr that'll get it for you in a month-ish time (ITIN).

Indeed.

You could contract with a service that does all of︀ this for you for a fee, if needed.

They are pretty much not done in my experience.

 

[Don]

@TheCryptoAnt, have you opened some new bank accounts for US LLC lately? Mind sharing‌ some insights?

 

[TheCryptoAnt]

Not personally but Ive got a recommendation for‍ you in my DMs 😎

 

[Forester]

@Don, @TheCryptoAnt : OK, friends;⁠ but do not go OT so much, please. Manage this privately or feel free to⁤ open another thread re: this (I might be able to add something 2 cents worth⁣ there 😉 )