Company formation in Caribbean

[elboligrafo]

Hello everyone. Can you recommend a small law firm that provides company formation services for an adsense based business, with a desired jurisdiction in a Caribbean country? I will need to receive Adsense payments from google and credit/debit card payments from clients , therefore a business account will also need to be created with an acquiring bank and a payment processor that won't reject the acquiring bank.

 

[Marzio]

Are all‌ Caribbean jurisdiction desiderable for you?

 

[elboligrafo]

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Essentially yes, preferably‌ one that isn't in CRS/AEOI Partnerships with many countries.

 

[JohnnyDoe]

elboligrafo said:

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Essentially yes, preferably one that isn't in CRS/AEOI Partnerships with many countries.
Click to expand...

So you don't care if it is, for example, Jamaica, Trinidad or Antigua 🙄
Maybe you should first research the various countries and then ask questions on those that seem more interesting to you.

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[elboligrafo]

According to my research, those countries except⁠ Trinidad has existing/starting CRS/AEOI partnerships.

The taxes for those countries are also seemingly high.

Jamaica
Corporate income tax rates – rates may vary depending on the type of company 25%⁤ or 30% or 33,33%
Personal income tax rates – (i) standard – 25% (ii) higher⁣ (for income exceeding JMD 6 million) – 30%
General consumption tax (instead of value-added tax)⁢ rate – 15%
Withholding tax rates (for non-residents) – (1) corporate: (i) dividends – 33,33%︀ (ii) interests – 33,33% (iii) royalties – 33,33% (2) individual: (i) dividends – 25% (ii)︁ interests – 25% (iii) royalties – 25%
Capital gains tax – not applicable
Trinidad
Companies Tax Obligations

Required to file a Corporation Tax return annually.

Liable to pay Green Fund︂ Levy at the rate of 0.3% of gross sales or receipts whether or not such︃ company is exempt from Corporation Tax.

Liable to pay Business Levy at the rate of︄ 0.6% on gross sales or receipts if income is above $360,000 after three years of︅ commencement of trading (usually interpreted as commencing from the date of incorporation) and subsequently thereafter.︆

Liable to pay Corporation Tax at the rate of 30% on the profits after deducting︇ business expenses and allowances.

Value Added Tax (VAT) registration if income exceeds $500,000 in any︈ successive twelve (12) months.

Note - A company only pays either Business Levy or Corporation︉ Tax (whichever is higher). Any remittances made in respect of either category is amalgamated and︊ treated as a credit in the final tax computation for the respective income year.

Antigua
Basic corporate tax - 0%-25%

Personal income tax - 10%-25%

Tax exemption - No capital︋ gains, withholding, estate, inheritance taxes and many more; Tax exemption for fifty years from the︌ company incorporation date for an offshore company in Antigua;

Fiscal freedom is available only in︍ the case of income/profits received outside Antigua; The Antigua company does not pay stamp duty;︎

The amount of the annual state fee is $300;

Double taxation treaties with 12 countries️ and a network of tax information exchange agreements with 20 countries.

Belize or Turks &‌ Caicos seem attractive, more attraction to the latter.

Would I have issues receiving payment from‍ clients and Google Adsense if I open a bank account in Turks & Caicos or⁠ Belize?

 

[Cons Mark]

In Carribean most⁣ advanced option is British Virgin Island.

 

[Marzio]

I would instead form a tax transparent entity like UK LLP with personal tax residency‌ in Dominican Repuplic. I'm not an expert but from what i recall from @JohnnyDoe income from outside the country isn't taxed there.

 

[koohl]

Yes you will get troubles to receive payments in such a construction unless you have‌ substance in the company which may be hard to get.

 

[elboligrafo]

According to the 2019 Economic Substance Guidance Notes for the Economic Substance Act in Belize,⁠ the entities governed by the act are. :

a) banking business;
b) insurance business;
c) fund management business;
d) financing and leasing business
e) headquarters business;
f) distribution and service⁤ centre business;
g) shipping business;
h) as a holding company, engaged, or where one or⁣ more of its subsidiaries is engaged
in one of the activities listed under s.5 (a)⁢ to (g).
i) all Regulated Entities under the IFSC Act.
Also in section B Non-included︀ Entities :
The substance requirements of the Act do not apply to any entity that︁ does not conduct relevant
activities in Belize.
The substance requirements of the Act do not︂ apply to a commercial entity that is controlled
and managed outside of Belize and is︃ tax resident in a jurisdiction other than Belize; however,
such an entity must provide the︄ Authority with sufficient proof that is tax resident in the
jurisdiction that it asserts which︅ is elaborated in section 5 of the Guidance Notes.

Would this act apply to me︆ even though my service is done not physically in the Belize jurisdiction, and my entity︇ doesn't directly imply it is one of the type of entities(mine is internet advertising) listed︈ in the act?(the Turks & Caicos Economic Substance Act counterpart is similar if not the︉ same)

 

[karishi]

I have a LLC in San Vincent and the Grenadines with personal residence in the‌ UAE. I use BBCincorp for managing the company and I have had no issues with‍ them. You can try to check with them and see what they offer.

 

[elboligrafo]

Are there any hidden fees with BBCIncorp? For example : Have you⁤ discovered that after you registered, you needed other services that they didn't make you aware⁣ of , even though you told them the nature of your business? I saw a⁢ post on this forum alleging to such an experience.

What are the pros and cons︀ of a Service Provider/Agent versus a Small Law Firm offering the same service?

 

[JimBeam]

Take into an account that Adsense will pay you only to the bank account in‌ the same country as your company.
So, if your company is in Belize - your‍ corporate bank account needs to be in Belize as well!

Also, take into account tax⁠ treaties with these jurisdictions as if there is no tax treaty, you might get 30%⁤ deducted in US for Witholding tax.

 

[Cons Mark]

You are not correct⁣ in case if you have country A you may have company in country B, there⁢ is no any must to open in one country.

 

[Onassis]

Why SVG out of all countries?

 

[JimBeam]

https://support.google.com/adsense/answer/7164701

 

[karishi]

well I did it‌ in 2017 and it was a suggestion from SFM, I guess they wanted to sell‍ me the bank account with loyal bank. But in the end I have had no⁠ issues with it so far.

No, but my setup is super simple, I just offer︂ development services to a few clients. Super clean and super easy.