Cheap offshore formation or?

[mateusz2209]

Hello,


I am running an company in Central Europe where I sell online services (mainly marketing & social media stuff).

Most of the market (like 90% of my income) goes through Perfect Money. I've just received information, that they stopped working with 11 countries (including mine).

The tax are not issue at the moment (just FYI for tax residence subject).

I just need an name / formation / just a company that I can register my account with. I don't need to withdraw or deposit funds via wire transfer so even a confirmation of account is not neccessary.



I have been thinking about LTD in UK, FZ/LLC in Dubai, or just an simple offshore like Panama or Seychelles.

Any ideas how to deal with it? I am losing customers due to no Perfect Money payment method.

Last edited: Oct 13, 2024

 

[AlicaFunk]

Can they accept Cyprus companies, then speak with @CyprusLaw , @CyprusLawyer101 @CyprusBusiness

 

[mateusz2209]

yes they accept Cyprus, but I am looking for ideas how to get‌ it cheap and with relatively low hassle.
Companies like "Rent a company" would be perfectly‍ fine for that, but I heard bad reviews on most of them.

 

[Forester]

Be advised that a business which is run via Perfect Money (as well as via‌ any other Comoros financial institution) will be, extremely probably, seen as dubious. This is not‍ an accident that PM stop serving some jurisdiction, they are usually not in a good⁠ position there.
Hence, I am afraid that a cheap and relatively low hassle solution will⁤ be difficult to find. If you share more details about your business and financial flow,⁣ including why 90% of your income goes through Perfect Money (feel free to enter Mentor⁢ Group if you do not want to do it on a publicly searchable pages), you︀ might obtain some more particular / valuable advice.

 

[CyprusLaw]

This would no lonnger be possible in the EU, bear in mind that cheap solutions⁤ nowadays simple don't work or in a lot of cases are scams.

 

[AlicaFunk]

Yeah, there are a lot of bad reviews about Rentacompany, even here on OCT. But⁤ I don’t get why you’re only talking about it being cheap? It’s like nothing else⁣ matters to you?

 

[mateusz2209]

I don’t want to relocate, and I⁠ already pay taxes here in my country. Just what comes to my mind incorporating a⁤ mainland or fz Dubai company just to keep working same as before is quite bad⁣ idea. Of course if I’d choose to relocate it will be one of my go-to⁢ countries, but at the moment I am looking for something even temporary, not so expensive.︀

 

[Sols]

The quickest and easiest are probably Nevis or Belize LLC. No substance requirements, quick incorporation,‌ and easy to maintain. Not great if you need banking, payment processing, and so on.‍ But if all you need is an entity quickly, those two are pretty decent options.⁠ Mauritius AC (authorized company) could also work.

For tax purposes, it's worth looking into and⁤ see how income from an LLC might be taxed differently than a corporation.

Seychelles and⁣ most other IBC type jurisdiction have substance requirements by now.

 

[Forester]

Well, @Sols, you've nailed it (as usually 🙂 ). Really, if all that @mateusz2209 needs is just an entity onboardable by Perfect Money quickly and easily, the above can work︀ well, especially taking into account that it can be just a temporary solution, as @mateusz2209 commented.

Just adding that I would never build or recommend to build any business that︁ should be a long-term prospective on such a base (90% of income via Perfect Money︂ going to Belize|Nevis LLC). Nevertheless, 1) this was not the topic opened for a discussion;︃ and anyway, 2) for something high risk – high margin – short run, why not...︄

 

[mateusz2209]

thank you all guys for replies!

Yeah, the business is︁ going well for 2 years already, I'd take into consideration other countries as well for︂ a long-term stuff. I've just needed something urgent for now, as my resellers (customers) are︃ complaining that they can't pay for a service.

 

[Forester]

You are welcome!

Well, good for you!

Yes, this is understandable.
Just wanting to explain additionally, that the main issue I would be worried about (in this⁠ case) is this 90% of income traffic going via Perfect Money with no banking alternative.⁤ I guess that you are aware that Perfect Money is anything but an institution stable⁣ and predictable in the long-term perspective. They can stop (to be exact, be forced to⁢ stop) their business anytime (to be honest, the fact that they are already running for︀ 10+ years should be considered a miracle, IMO). This is a real trap. (And as︁ explained above, Nevis or Belize LLCs are not much welcome in banks and EMIs,︂ nowadays.)

 

[W Fish]

Why dont you just run a company in your country of residence and open a‌ regular account for it there? That would be the first, most obvious solution, wouldn't it?‍
If this is not possible for some reason, then the solution for the problem would⁠ come from the reason.

 

[EliasIT]

I agree 100% with @hannesur - that would be the obvious first step! Why don't‌ you go this way?

 

[Forester]

🙂 Re-read the initial post (emphasis mine):

Hence, using a offshore subject is really the first solution.

 

[brianK]

So better looks at a Belize or Seychelles company if perfect money can accept it‌ and is an requirement.

 

[EliasIT]

where did you setup your your company⁤ for this purpose?

 

[mateusz2209]

Quick update: countries are getting banned on PM quickly. Better for me as the whole‌ industry will switch to other payment methods. Thank you for all replies!

PS: if you‍ guys hold anything in PM and you received email about "complex regulations", better to withdraw⁠ the money - you have 30 days 🙂

 

[myshufflemix]

It all depends on‍ whether you are just going for the cheapest option. If you do, you get what⁠ you pay for, and then you can just set up a Seychelles or UK LTD⁤ – both are useless in my eyes.

However, if you are serious about your business⁣ and have the money to establish a company properly, I would go for Dubai. If⁢ you want something that appears serious and doesn’t raise eyebrows when people hear about it,︀ then there is Switzerland, which still holds a high level of prestige with almost everyone︁ you do business with in Europe.

 

[brianK]

With this requirement, the fastest is a UK LTD︃ I'm sure it is also the cheapest!

 

[kokunut]

check threads