Hi everyone!
I'm new here and looking for help from the community to figure out the right direction to go. After a few days of research and calls with different providers, my brain is about to explode 😵
My goal:
To set up a structure that's legal, cost-efficient, and optimized for low taxes and maintenance. I'm happy to pay taxes, but if there's a legal way to pay less ”” why not?
About the business:
Current setup:
Questions:
1) Some of our clients don't want to pay the Hong Kong company (due to their own compliance/offshore concerns), so we need an additional structure outside HK to:
a) UK LLP
Find a second partner or use a HK company, because of the pass-through taxation and non dome I can get 0% corporate tax and access to a large number of good EMIs.
Inexpensive service, but I can't have clients from Cyprus (otherwise there will be a pass-through income in Cyprus for me as an individual). Correct?
b) Singapore (non-resident company)
There is quite little information and apparently the jurisdiction/providers doesn't advertise this opportunity (or is it not relevant?), but as I understand it, there is an opportunity to get 0% tax on income/clients from outside Singapore if we don't have substence/clients there (for clients from Singapore, we will be able to use our HK company).
But there is a risk of recognizing this Singapore company by the beneficiary (me) as a tax resident of Cyprus and, accordingly, Cyprus corporate taxes apply + possible problems with withholding tax for clients from other countries? (not transparent for me, maybe I'm wrong).
Difficulties with banks/EMI (you can't have Singapore accounts), more expensive setup, maintenance, audits, and accounting.
c) Classic offshore (BVI, Seychelles, Panama, etc.)
2) If none of the above options work as a simple one-layer structure, maybe I need something more complex?
Like setting up a virtual or real office/utility bills/staff in another country with low local corp taxes, or using my Grenadian passport somehow?
Last edited: May 2, 2025
I'm new here and looking for help from the community to figure out the right direction to go. After a few days of research and calls with different providers, my brain is about to explode 😵
My goal:
To set up a structure that's legal, cost-efficient, and optimized for low taxes and maintenance. I'm happy to pay taxes, but if there's a legal way to pay less ”” why not?
About the business:
- We run a completely legal and transparent online advertising agency
- Main clients are from the US, Hong Kong, UAE, and EU (CY/NL)
- We promote online services and app games (no gambling or other stuff)
- UAE is not a great option for us ”” I see growing issues with USD transfers to/from there
Current setup:
- Back office: Our team is based in Tajikistan, under a local company that's purely operational and doesn't generate profit (just covers expenses)
- Hong Kong company: Signs client contracts, receives revenue, and pays for ads (Meta, Google, etc.). No employees, I'm the only director. Offshore status (no business or revenue in HK)
- My personal status: I'm a Cyprus tax resident with non-dom status, holding Tajikistan and Grenada passports
- Revenue and profit fluctuate, but roughly: $100k/month revenue, $20k/month profit
Questions:
1) Some of our clients don't want to pay the Hong Kong company (due to their own compliance/offshore concerns), so we need an additional structure outside HK to:
- Receive payments
- Sign contracts
- Diversify risks (e.g., in case Meta freezes our Business Manager)
a) UK LLP
Find a second partner or use a HK company, because of the pass-through taxation and non dome I can get 0% corporate tax and access to a large number of good EMIs.
Inexpensive service, but I can't have clients from Cyprus (otherwise there will be a pass-through income in Cyprus for me as an individual). Correct?
b) Singapore (non-resident company)
There is quite little information and apparently the jurisdiction/providers doesn't advertise this opportunity (or is it not relevant?), but as I understand it, there is an opportunity to get 0% tax on income/clients from outside Singapore if we don't have substence/clients there (for clients from Singapore, we will be able to use our HK company).
But there is a risk of recognizing this Singapore company by the beneficiary (me) as a tax resident of Cyprus and, accordingly, Cyprus corporate taxes apply + possible problems with withholding tax for clients from other countries? (not transparent for me, maybe I'm wrong).
Difficulties with banks/EMI (you can't have Singapore accounts), more expensive setup, maintenance, audits, and accounting.
c) Classic offshore (BVI, Seychelles, Panama, etc.)
- Possibly cheaper and easier in terms of audit and compliance
- BUT: Harder to get reliable banking/EMIs
- Same as in Singapore, Cyprus authorities may treat it as managed from Cyprus = taxable locally and apply Cyprus corp taxes, and non-dome status doesn't help.
2) If none of the above options work as a simple one-layer structure, maybe I need something more complex?
Like setting up a virtual or real office/utility bills/staff in another country with low local corp taxes, or using my Grenadian passport somehow?
Last edited: May 2, 2025
