EU CBD E-commerce Store Actively Looking for Setup

[SAKURA]

Dear All,

Apologies if this particular subject has been discussed before (but we haven't been able to find any answers by searching the forums).
We're currently looking for a legit/stable/long-term solution to be able to accept credit card payments for our European CBD E-commerce store.

Our current setup is the following:

• UK LLP (comprised of EU nationals but non-UK residents, currently resident in Asia).
• We currently use a Transferwise account (we've been unable to secure a proper bank account due to our non-UK residences).
• We have also been unable to secure a merchant account for credit card processing (due to a combination of factors, including LLP status/non-UK residents/No UK substance/Transferwise/CBD industry/Low-volume).
• Our clients are 100% based in western Europe.
• Chargebacks would likely be minimal thanks to same-day dispatch & refund policy.

We were thinking of solving this by:

• Incorporating in another EU juridiction.
• Providing minimal substance in that country (in order to get utility bills, etc.)
• Get an actual bank account (no EMI) + the ability to process credit cards.
• Run the business from our Asian residences.

Would any of you have a suggestion as to which jurisdictions would be the most appropriate for this setup?

Thanks a lot for your help!
Sakura

 

[JohnLocke]

SAKURA said:
European CBD E-commerce store.
Click to expand...

You may elaborate on what exactly it is you are doing and which payment processors you already have tried!

Did you at any point had any payment processing for your business?

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[SAKURA]

Hi Admin,

Thanks for the prompt response.

Admin said:
You may elaborate on what exactly it is you are doing and which payment processors you already have tried!
Click to expand...

Our store sells CBD products formulated for cats & dogs (fully compliant in markets we target, THC-free, non-psychoactive products).

So far, we've tried the following payment processing companies :
- Nochex ** DECLINED, NO REASON GIVEN**
- Quaife **DECLINED - NOT ENOUGH VOLUME**
- PayAlly **DECLINED - NO CBD PRODUCTS ACCEPTED**
- DirectPayNet (Broker) **DECLINED - NO NON-UK RESIDENTS ACCEPTED**
- Quickpay.net /Clearhaus.com **DECLINED - NO REASON GIVEN**
- SQUARE **DECLINED - NO NON-UK RESIDENTS ACCEPTED**
- Cardinity ** DECLINED, NO CBD PRODUCTS ACCEPTED **
- Emerchant brokers **DECLINED, NO REASON GIVEN**
- Securetrading **DECLINED - NO NON-EEA RESIDENTS ACCEPTED**

Admin said:
Did you at any point had any payment processing for your business?
Click to expand...

No, we've never accepted credit cards, we're just starting out.

Thanks & regards,
Sakura

 

[JohnLocke]

Well here you may have the reason CBD Regulation UK - - Explained - - Medic Pro Limited - so you will need to find a merchant processor which can mix your transactions with others, it's an 3rd party payment processor.

So far I can only suggest you to check with Instabill and Durango Merchant Service which may have some high risk payment processors to refer you to.

I will check what else I may be able to find.

Toggle signature

>> Unlock the Power of OffshoreCorpTalk: Become a Member of the Mentor Group Gold <<​

Latest Video Interviews, Offshore Company Resources, Payment Processing Tips & Tricks, Articles and Anonymity Hints only a click away!
Support the Freedom of Speech of our Community

Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[SAKURA]

Admin said:
So far I can only suggest you to check with Instabill and Durango Merchant Service which may have some high risk payment processors to refer you to.
Click to expand...

Thanks for the suggestions.. I'll revert back to you with their decision.

 

[Gediminas]

Hi

The main issue is that business is related to CBD, it makes banking matters much more difficult. I would consider the Netherlands as an option with minimal economic substance. I would recommend that one of the main shareholders comes to the Netherlands and registers himself in Amsterdam. This would not influence tax residency, he only would have a second place of the registered address. When registering in Amsterdam you would indicate that you permanently live abroad but you visiting Amsterdam quite often and staying in hotels. They would give you a BSN number (local resident number). This would help to open an account in such a bank such as BUNQ. When you have B.V. (with minimal substance) and bank account you would be able to meet requirements of payment gateways.

Toggle signature
https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[Martin Everson]

SAKURA said:
We're currently looking for a legit/stable/long-term solution to be able to accept credit card payments for our European CBD E-commerce store.
Click to expand...

Try EFT Global.

http://www.eftglobal.com/
P.S I have not used them before.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[SAKURA]

Gediminas said:
minimal economic substance
Click to expand...

Thanks for your response. Do you know what the "minimal economic substance" would entail under Dutch Law?

Gediminas said:
This would help to open an account in such a bank such as BUNQ
Click to expand...

We'd like to stay away from NeoBanks as our primary account.
Would you happen to know what our chances would be to open an account with a traditional dutch bank ? (ING, ABN AMRO, etc.) as non-resident directors of that NewCo ?

 

[SAKURA]

Martin Everson said:
Try EFT Global.

http://www.eftglobal.com/
P.S I have not used them before.
Click to expand...

Thank you for your response, we'll contact them & let you know how it goes.

 

[Gediminas]

SAKURA said:
Thanks for your response. Do you know what the "minimal economic substance" would entail under Dutch Law?



We'd like to stay away from NeoBanks as our primary account.
Would you happen to know what our chances would be to open an account with a traditional dutch bank ? (ING, ABN AMRO, etc.) as non-resident directors of that NewCo ?
Click to expand...

You would be able to open an account in one of the “system” banks only if the company would do actual business within NL, would have an office, employees, etc. Dutch banks, like ING, Rabo, SNS, ABN Amro are extremely strict and nowadays it is almost impossible to open an account with them for those who do not live in the Netherlands. By the way, BUNQ is not an EMI is Dutch licensed bank, however from the new generation, without physical premises, only App.

As regards substance, in order to open an account in BUNQ or EMI you would not need to meet full scope Dutch substance requirements, only to have an office with possibilities to use Flexi desk, one employee, Dutch BSN number.

Toggle signature
https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[Martin Everson]

Dutch substance test is not for faint-hearted 😕

https://www.burenlegal.com/en/news/dutch-minimum-substance-requirements

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.