EU payment agent
- Thread starter Marzio
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Cyprus is by far the most common I see. Malta is a distant second.
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This is the probably the answer to your question.
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This is the probably the answer to your question.
Cyprus, Malta, and Estonia all work well for simple payment agent operations.
Estonia is the least bureaucratic, cheapest, and offers great automated solutions to deal with IOSS/VAT, Customs Clearance, HS Code Allocation, Duty & Tax Calculation.
Agree, Cyprus & Malta are the most popular among UK!
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My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.
The reason is that while the EU directives are the same, some jurisdictions interpret them differently allowing more possibilities for setting up such structures without financial licenses.
It's usually called a Principal”“Agent Agreement. An experienced lawyer will be familiar with drafting them. Substance requirement are usually satisfied with a simple nominee director. You don't want too much substance or the agent risks being seen as the principal (the service provider).
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This is the probably the answer to your question.
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This is the probably the answer to your question.
Just think about which structure is cheaper, easier to open a bank account, and with less compliance burden (e.g., tax, audit).
We have opened such structures in Estonia and Cyprus. It's a typical case these days to get access to EU payment processing for 3rd countries, and even some EU-based EMI-s use such solutions.
In Estonia, such a structure could be set up even without the requirement to submit any annual reports (or audits).
you might run into some problems with zero substance, so at least a local director and office rental are recommended to avoid potential legal issues (depending on the related jurisdictions) and to ensure success with opening bank accounts.
I need EUR PayPal so UK is not an option otherwise i would be paying outrageous conversion fees.
What about using an Ireland non resident company? Is this still a thing?
Last edited: Aug 24, 2022
From banking perspective, for the payment agent entity to be able to open bank account, it has to be a wholly owned subsidiary of the principal entity and not a totally separate entity, otherwise transactions are considred as 3rd party payments something which is not accepted by the majority of the EMIs.
From the jurisdiction point of view, any EU entity acting as a payment agent should be eligible for both bank and merchant account.
From the jurisdiction point of view, any EU entity acting as a payment agent should be eligible for both bank and merchant account.
can you setup accounts for a UK and Cyprus LTD ?
I mean for payment processing? how about high risk considered business can you do that?
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