OVZA
New Horizons Paraguay
Ticker tape by TradingView

UAE or Seychelles for e-commerce in 2020/2021?

Status
Not open for further replies.
M

max4

New Member
Oct 27, 2020
17
0
36
I'm wondering which entity would work best for my e-commerce. Right now I'm living in Europe and I plan to live here for some more years. I wanna do things legally by paying my income tax, but I want easy regulations.


Can you give me some cons and pros both for the UAE and Seychelles, to help me decide where to create an entity? If possible I wanna use EMI.

I have found plenty of information on this forum, a very helpful community, but I'm still can't decide on this matter.
 
Seychelles you are very unlikely to get a bank account / payment processor that will‌ work with your setup. If you wanted paypal / stripe forget it.
 
If you're living in Europe, why don't you open a company in any other European‌ country as Long as taxes is not an issue? Why don't you want to open‍ a Romanian Micro company and you'll pay 1 or 3% for example if your company's⁠ turnover is less than one million Euros. Why not malta? cyprus?.
 
Maybe for people from the Seychelles.‍ Not for a foreigner who has opened an offshore company, using a bank in a⁠ different country in order to avoid taxes in the country they are tax resident in.⁤
 
Because it doesn't work like that. Unless you can show substance to convince your⁣ local tax authorities, your business will be considered tax resident where you live / are⁢ tax resident). As OP is in ecommerce there is no substance they could show, as︀ they are the business with no full time office / staff
 
ِAnd you think that you could escape the substance requirement by opening a UAE/Seychelles company⁣ without hiring any one to work in your company? of course not!

from what you⁢ have said, you still live in the EU and it doesn't matter where you incorporate︀ your company offshore, if your company doesn't have real employees in or real substance, your︁ company will be considered a tax resident in your home country in Europe because of︂ the CFC rules.

There is no way around that unless you decide to move to︃ a "tax friendly" country.
 
Yes most people will have to physically move themselves to the place they wanna incorporate‌ in. You cant just incorporate in UAE while you live in EU.
 
So normally there isn't a way around this unless I move? How about‍ Nominee services, or virtual offices, do these can solve this issue effectivly? I really wanna⁠ just wanna benefit from the more lightweight regulations and possible lower corp tax rate.
 
Of course not, the same reason you cannot open a company in Romania‍ is why you cannot open a company in Seychelles

yes, that is what I am saying. What I︁ said is applicable to opening a Romanian company and a Seychelles company or where ever.︂ You cannot open your one person business account in country (x) and assume your company︃ is tax resident in country(x). Whether that is 0% tax jurisdiction, 5% 10% or 20%.︄ The rules are the same. The business is tax resident where it is run from,︅ which for a one-man-shop, that is where you are - typically your home country.

Unless you move or go the less than legal routes
 
No. You need to show substance that the business is not only RUN⁠ from this country but is MANAGED from there as well. You cannot get a virtual⁤ office, you cannot even rent a real office and put a secretary there. It has⁣ to be run and managed from.

The above applies to︀ tax rate. You won't (legally) be able to make use of lower tax rate. For︁ lower regulation, that might possibly be an option. But you will have extra headaches with︂ your local tax office
 
I believe the UAE is the better place for what is discussed here. As already‌ explained, it will be impossible to open a PayPal account for a Seychelles company owned‍ by an foreigner and without substance.

You will need to go the dark way as⁠ described in the mentor group gold forums if you want to stand a chance to⁤ get this work.

Compared to the costs you face setting up a UAE company compared⁣ to try to setup a Seychelles company as described in mentor gold may be worth⁢ it. If it fails, you still can effort to setup a UAE company, in other︀ words, the lost is small.
 
It has something to look into the UAE but very expensive in setup costs if‌ you ask me.
 
Status
Not open for further replies.

JohnnyDoe.is is an uncensored discussion forum
focused on free speech,
independent thinking, and controversial ideas.
Everyone is responsible for their own words.

Quick Navigation

Forums

User Menu

Login
Community platform by JohnnyDoe © 2025 JohnnyDoe
Top Bottom