Cheapest company - incorporation + maintenance -

[gomoca]

I read in a post years ago that the cheapest solution for a new company‌ is uk

currently is this still the case ?

specifically, I was looking for the‍ easiest and cheapest establishment and maintenance solution for a site (advertising and probably dropshipping)

not knowing if the idea might work or not, I need to spend as little as⁠ possible, at least for the first 2/3 years

I am not interested in anonymous setups⁤ or other special things.

I am a Hungarian resident, and would avoid Hungary due to⁣ contractual constraints with my current job

I was thinking about uk ltd nonresident or us⁢ (delaware?? ) again as nonresident, but I can't find any information about filling out the︀ various documents from the second year , especially the costs in case of minimal or︁ no receipts

does anyone have an analytical outline and any suggestions ??

 

[Wellington]

UK is dirt cheap and digital and almost instant.

 

[gomoca]

Thank you for your response.

do you have any links or information on what forms‌ I need to fill out at the end of the year/ second year ?
is this something I can do on my own or do I have to aproach an‍ accountant ?

 

[Spinat]

second that.

UK LTD is the cheapest and where you are able to get accounting and‌ annual filing cheap and fast.

 

[JimBeam]

Where do you live?
Will you pay taxes in Hungary?

 

[Paul77]

If you are from Europe then UK LTD is definitely one of the best if‌ not the best choice.

 

[financenick]

Question to everyone suggesting UK Ltd:

Since Brexit, wouldn’t such setup lead to import duties‌ every time he sells something? He’s talking about dropshipping, so his UK company would sell‍ goods to EU customers.

 

[Spinat]

If you don't live in the UK but only have the company there, you won't‌ have troubles. If you have a warehouse or something in the UK it may also‍ be different, but I believe this is a kind of affiliate business, you only do⁠ the sales, don't have any office nor places where you stock stuff.

 

[financenick]

Dropshipping still means that you buy from a supplier and then sell the⁤ goods to your customer. The only difference is that (1) both transactions (purchase from supplier⁣ + sale to customer) happen in the same moment, so that (2) you’ll never physically⁢ have to hold the inventory but your supplier can immediately ship it to your customer.︀

That’s why I think there would be import duties since a UK company is selling︁ to an EU customer (and not just merely acting as a marketplace to facilitate a︂ transaction between two parties).

Now what I don’t know is if it would make a︃ difference if both customer and supplier are in the EU so the goods are already︄ in the EU.

 

[aage]

do you have the products you are selling on stock in your⁣ own warehouse? if not @Spinat is right, you are nothing than a seller and for⁢ that reason there is nothing to worry about.

 

[financenick]

The key feature of dropshipping is that you theoretically never have‍ any inventory. The moment your customer places an order, your supplier ships it to him⁠ directly. I write “theoretically” because returns would go to you, since you’re the seller.

I’m don’t understand why that would be the case. Most⁣ UK businesses that did/do business with European customers are sellers, and they’ve all been affected⁢ by the import duties caused by Brexit. Or are you referring to the case where︀ the supplier is already in the EU so there’s no physical shipment from UK to︁ EU?

 

[Paul77]

The OP is mostly talking about advertising and dropshipping just as a probability. With dropshipping‌ in the EU it gets quite complicated. Anyway the supplier will probably be from outside‍ EU (China?) so the VAT and customs would have to be paid anyway when entering⁠ the EU. I would talk to an accountant about this first before making any decissions.⁤

 

[financenick]

If he's doing the classical dropshipping model where suppliers typically come from China (AliExpress etc.)⁠ then you're right. Some people do stuff like on-demand printing (merch or art), and this⁤ can be sourced locally (you wouldn't save much by printing in China, and the product⁣ to print on typically came from there or another developing country already). In such case,⁢ what would be the import duties when both the supplier (i.e., an on-demand print shop)︀ and the customer are in the EU but the seller is a UK Ltd.?

 

[Paul77]

I think it would be the import duties of the country︀ the customer is from. But don´t quote me on that as I do not run︁ such a setup.

 

[gomoca]

thank you all

main activity will be the sale of advertising...
nothing physical

dropshipping is‌ a possibility
by dropshipping I mean both the sale of physical products taken from suppliers‍ outside the eu/inside the eu and print on demand.

so if i only did the⁠ advertising from what i understand, a uk ltd as a non-resident should be enough to⁤ get going without major expenses

for the tax year i should basically fill : Non-resident Company Income Tax Return (SA700)

thinking that for the first year i would have 0⁣ income, i fill everything in at 0

correct me if i am wrong

does anyone⁢ have any links for post incorporation DIY?

 

[Dom pedro]

Any recommendations for accounting‍ and annual filling? It seems that adding that will cost no less than $600 a⁠ year. Still cheaper than traditional offshore destinations live BVI, etc...

 

[Spinat]

speak with @James Turner or your current agent.

 

[sp2021]

As a Hungarian resident, wouldn't the OP still be liable for all taxes in Hungary?‌ Since he is resident there doesn't the UK ltd end up being seen as a‍ local Hungarian company? If that is the case, what is the point of this set⁠ up?

 

[CyprusLawyer101]

Import/export duties arise at the borders .

 

[bonox]

I would say yes he is liable. That's why⁤ he may have found expert advise here 😉