Offshore company and 2Checkout
- Thread starter apocaliv
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I can visit HK but as far as I know there is no option for residents of my country to open a bank account, unless my company "physically" work in HK and I have proofs.
I'm not offshore specialist, but as I know Latvia requires to provide all accounting reports, website URL and at some point they will see that I sell my stuff in︀ EU. They have yearly non-VAT threshold (around 16k), but we have higher numbers.
Cyprus corporation︁ tax is 12,5% so this is not a option.
I'm not offshore specialist, but as I know Latvia requires to provide all accounting reports, website URL and at some point they will see that I sell my stuff in︀ EU. They have yearly non-VAT threshold (around 16k), but we have higher numbers.
Cyprus corporation︁ tax is 12,5% so this is not a option.
Just received reply form 2co:
2Checkout is not concerned with where your business is registered. The information required concerns your actual physical address. If your business is registered in Hong Kong but you live in and operate your business from [my country] you will need to provide this address information. If you do not have a physical presence in Hong Kong, you will not be able to utilize a bank in Hong Kong. 2Checkout requires that your physical location and your bank account be located in the same country. We require documentation to verify your physical location in order to prevent fraudulent activity. If you︀ do not have a physical location and a bank account in the same country, 2Checkout︁ will not support your business.
so the only way is to have a bank account︂ in my country? Kinda strange requirement since I mentioned that I'm looking for business account,︃ not individual.
2Checkout is not concerned with where your business is registered. The information required concerns your actual physical address. If your business is registered in Hong Kong but you live in and operate your business from [my country] you will need to provide this address information. If you do not have a physical presence in Hong Kong, you will not be able to utilize a bank in Hong Kong. 2Checkout requires that your physical location and your bank account be located in the same country. We require documentation to verify your physical location in order to prevent fraudulent activity. If you︀ do not have a physical location and a bank account in the same country, 2Checkout︁ will not support your business.
so the only way is to have a bank account︂ in my country? Kinda strange requirement since I mentioned that I'm looking for business account,︃ not individual.
You can register non resident / offshore and the tax rate is 0%
I second that. There are ways how this easely can be done. We are a few here testing different payment service providers i.e. PP, 2co, Skrill etc. just to proof the opposite for the many romours out there, that it is impossible to open an account with these processors for your offshore company.
I second that. There are ways how this easely can be done. We are a few here testing different payment service providers i.e. PP, 2co, Skrill etc. just to proof the opposite for the many romours out there, that it is impossible to open an account with these processors for your offshore company.
Didn't know that, thanks!
I asked my lawyer and he told me that I will need to open a real office in HK to be able to get HK︀ bank account. I've read lots of stories on local forums about closed HK bank accounts︁ in the past few years. My country is famous for money laundering, probably this is︂ the reason.
Don't know, but for some reason 2co support told me that my physical︃ location is essential. I've sent them several messages today and the only solution is a︄ bank account in my country:
#1
Thanks for the reply! You will be required to︅ provide proof of address for the physical location in which you operate your online business.︆ If you do not have a physical presence in the Seychelles, you will not be︇ able to utilize a Seychelle bank account. If you do not have a verifiable physical︈ presence in Hong Kong you will not be able to utilize a Hong Kong bank︉ account. If you are physically located in [my country], you will need to utilize a︊ [my country] bank account. You may "register" your account in any country you wish, this︋ has no bearing on where your bank account should be located. Again, if you are︌ located in [my country] you will need to utilize a [my country] bank account.
#2
Again, as we have stated, if you are not able to provide proof of address︍ in the form of a utility bill or rental/mortgage agreement for the address you provide︎ on the application and the bank account is not located in the the same country️ as that address we will not activate your account. If you are located in [my country] and operate your online business from [my country], you must have a [my country] bank account. 2Checkout is not concerned with where your business is registered and will not accept a Virtual Address. We go to great lengths to verify your actual physical location, you will not be able to circumvent this verification.
Any advice would be appreciated.
I asked my lawyer and he told me that I will need to open a real office in HK to be able to get HK︀ bank account. I've read lots of stories on local forums about closed HK bank accounts︁ in the past few years. My country is famous for money laundering, probably this is︂ the reason.
Don't know, but for some reason 2co support told me that my physical︃ location is essential. I've sent them several messages today and the only solution is a︄ bank account in my country:
#1
Thanks for the reply! You will be required to︅ provide proof of address for the physical location in which you operate your online business.︆ If you do not have a physical presence in the Seychelles, you will not be︇ able to utilize a Seychelle bank account. If you do not have a verifiable physical︈ presence in Hong Kong you will not be able to utilize a Hong Kong bank︉ account. If you are physically located in [my country], you will need to utilize a︊ [my country] bank account. You may "register" your account in any country you wish, this︋ has no bearing on where your bank account should be located. Again, if you are︌ located in [my country] you will need to utilize a [my country] bank account.
#2
Again, as we have stated, if you are not able to provide proof of address︍ in the form of a utility bill or rental/mortgage agreement for the address you provide︎ on the application and the bank account is not located in the the same country️ as that address we will not activate your account. If you are located in [my country] and operate your online business from [my country], you must have a [my country] bank account. 2Checkout is not concerned with where your business is registered and will not accept a Virtual Address. We go to great lengths to verify your actual physical location, you will not be able to circumvent this verification.
Any advice would be appreciated.
You can't use a lawyer forthis purpose and also not an agent that don't know how to go about it. You may read some of the threads about PayPal here on the forum and 2co.. there you may find how people do it successful.
You don't understand what Admin meant with "you can't use a lawyer" - I can only repaet. You can't use a lawyer to sort this out, it will require you to read some of the other PayPal threads to get a picture of how to do it no matter what country you my choose and that is︀ supported by 2co or PP!
if you choose Cyprus, you will be able to open a SKRILL merchant account. Skrill accepts bank statement with the address of your company. Cyprus company + Cyprus bank
Skrill accepts mastercard /visa
then, for paypal, you need a credit card from Cyprus bank and you can withdraw money from your paypal account to your cyprus account thanks to your Cyprus issued credit card.
Skrill accepts mastercard /visa
then, for paypal, you need a credit card from Cyprus bank and you can withdraw money from your paypal account to your cyprus account thanks to your Cyprus issued credit card.
For the VAT moss and digital goods, you aren't forced to gather VAT at the beginning because there is threshold
How can I comply with VAT obligations? | Stimulating Digital Entrepreneurship
Cyprus rules. Hong Kong is a trap i think
How can I comply with VAT obligations? | Stimulating Digital Entrepreneurship
Cyprus rules. Hong Kong is a trap i think
Hong Kong is really not worth the effort and money it costs to register a company there if you don't do business in Hong Kong or china generally speaking! There may be other circumstances that makes HK to be a good choice for registering an offshore corp. but for the majority of Internet entrepreneurs it is not.
Thank guys! I also did some research and it seems that Cyprus is the best option.
As for VAT stuff, I'm sure we will pass that threshold really quick. Paypal should collect VAT by default. For credit cards, I'm going to use some merchants that collect VAT on their end - fastspring.com or digitalgoodsstore.com.
As for VAT stuff, I'm sure we will pass that threshold really quick. Paypal should collect VAT by default. For credit cards, I'm going to use some merchants that collect VAT on their end - fastspring.com or digitalgoodsstore.com.
andre12, in Europe, there is a threshold for every european country, if you stay under threshold of products/services sold, you don't need to gather VAT for this country.
Reference direct from the source:
https://ec.europa.eu/taxation_customs/sites/taxation/files/docs/body/vat_in_ec_annexi.pdf
Reference direct from the source:
https://ec.europa.eu/taxation_customs/sites/taxation/files/docs/body/vat_in_ec_annexi.pdf
Yes I used a local nominee director and his documents for one setup up. I tried several different setups with 2co, PayPal, Skrill and Neteller just to see what the truth is and how complicated the process is to open an account with them using an offshore company!
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