What is the best country for startup companies?

[benq]

Key Requirements:​

✅ Low-cost setup & maintenance
✅ Access to EMIs (Wise, Mercury, Payoneer or others) & payment processors (Stripe, PayPal)
✅ Zero economic substance requirements (I operate remotely)
✅ Zero tax or pass-through taxation (or offshore income exclusion)

Current Research:​

• US LLC: Works but I already have one, and the US is becoming less favorable for foreigners.
• Scottish SLP: Considering, but unsure about EMI acceptance.
• Offshore options (BVI, Seychelles, UAE?) ”“ Need clarity on banking and EMI access.

Questions:​

1. What's the cheapest, simplest structure that meets these needs?
2. Which jurisdictions actually work with EMIs without substance issues?
3. Any experiences with SLPs, UAE free zones, or offshore LLCs for consulting?

Would love insights from those who've done this recently””especially if you're billing clients via Stripe/PayPal/Wise.

 

[kilor]

lukey944 said:

• Offshore options (BVI, Seychelles, UAE?) ”“ Need clarity on banking and EMI access.

​

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forget these, you won't succeed with payment services going this way.

You should remove all the noise from chatgpt from your posts!

UK LTD could be a possible alternative to your US LLC.

 

[benq]

kilor said:
forget these, you won't succeed with payment services going this way.

You should remove all the noise from chatgpt from your posts!

UK LTD could be a possible alternative to your US LLC.
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I am a UK citizen, though, so I am not sure if that is a good idea. I'm not a tax resident of the UK and I live between Cayman and Panama. But interestingly I thought LTD companies were subject to UK corporation tax? And do UK banks and EMIs allow companies to use their registered agent address for banking? Curious to why you suggested that.

Haha, I got chatgpt to shorten it and make it clearer.

 

[ilke]

lukey944 said:
I am a UK citizen, though, so I am not sure if that is a good idea. I'm not a tax resident of the UK and I live between Cayman and Panama. But interestingly I thought LTD companies were subject to UK corporation tax? And do UK banks and EMIs allow companies to use their registered agent address for banking? Curious to why you suggested that.

Haha, I got chatgpt to shorten it and make it clearer.
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UK companies, same as Cyprus and a few other jurisdictions, can lose their tax residency.

So, if you prove the UK Ltd is a taxpayer somewhere else under a DTT and does not hold a UK PE/CFC, it doesn't have to pay tax locally.

Nevertheless, this is a bit difficult to document in 0% CIT places.

You can use a UK virtual office with banks, but you'll have to state the real (or at least appearing real) place of business.

 

[benq]

ilke said:
UK companies, same as Cyprus and a few other jurisdictions, can lose their tax residency.

So, if you prove the UK Ltd is a taxpayer somewhere else under a DTT and does not hold a UK PE/CFC, it doesn't have to pay tax locally.

Nevertheless, this is a bit difficult to document in 0% CIT places.

You can use a UK virtual office with banks, but you'll have to state the real (or at least appearing real) place of business.
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So Cyprus is the same? Wouldn't that be better than the UK? or SLP?

It sounds like I would run into the same issues as a US LLC by the sounds of it. Just very limited banking. I mean to be honest, the US LLC isn't bad, it is just a volatile business environment and having all my eggs in one basket is not good diversification if something goes wrong.

I was also looking at a Hong Kong LLC but the costs are quite high for that to maintain it especially for a startup. But what are your thoughts on the Hong Kong LLC?

 

[ilke]

lukey944 said:
So Cyprus is the same? Wouldn't that be better than the UK? or SLP?
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Yes, in Cyprus you can do the same, but company operation costs of a CY Ltd are much higher than a UK Ltd. SLP is fine, it's a good structure, though its functionality depends on who you appoint as the additional partner. If you have a corporate entity as a member (preferably a GP, beneficial for achieving full limited liability), it makes banking more difficult. Otherwise, you need to have another person there, which might make banking easier ”“ but the availability depends on your case.

lukey944 said:
It sounds like I would run into the same issues as a US LLC by the sounds of it. Just very limited banking. I mean to be honest, the US LLC isn't bad, it is just a volatile business environment and having all my eggs in one basket is not good diversification if something goes wrong.
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Yes, the cases are quite similar.

lukey944 said:
I was also looking at a Hong Kong LLC but the costs are quite high for that to maintain it especially for a startup. But what are your thoughts on the Hong Kong LLC?
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Hong Kong works, and since you can prove there isn't activity taking place locally, and you don't need to pay tax elsewhere either, there shouldn't be any problems in applying for offshore status. Otherwise, you need to pay 8.25-16.5% in taxes.

Although the costs are high, yes. You have more expensive accounting, formation, renewal, address, etc. costs than other places, and you also need to pass an audit. Banking is relatively OK but mostly with EMIs/MSOs.

 

[benq]

ilke said:
Yes, in Cyprus you can do the same, but company operation costs of a CY Ltd are much higher than a UK Ltd. SLP is fine, it's a good structure, though its functionality depends on who you appoint as the additional partner. If you have a corporate entity as a member (preferably a GP, beneficial for achieving full limited liability), it makes banking more difficult. Otherwise, you need to have another person there, which might make banking easier ”“ but the availability depends on your case.

Yes, the cases are quite similar.

Hong Kong works, and since you can prove there isn't activity taking place locally, and you don't need to pay tax elsewhere either, there shouldn't be any problems in applying for offshore status. Otherwise, you need to pay 8.25-16.5% in taxes.

Although the costs are high, yes. You have more expensive accounting, formation, renewal, address, etc. costs than other places, and you also need to pass an audit. Banking is relatively OK but mostly with EMIs/MSOs.
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Could I potentially have a family member as a representative for the UK Ltd or SLP and use them to open bank accounts? or would that then risk creating a PE in the UK?

Yes I just looked at Cyprus and ouch, the costs are high. I wonder what the ongoing costs are like. It may be worth the initial investment if it gives me good banking and EMI access.

I plan to do a Hong Kong LLC if the business goes well. It will then at least account for the high running costs.

Thanks for all this detailed information, you seem to really know your stuff.

 

[kilor]

Costs roughly 2000 EUR to renew a cyprus company, if it is worth it is up to you.

you may get proposals from the users around OCT they are into CY formation.

 

[benq]

kilor said:
Costs roughly 2000 EUR to renew a cyprus company, if it is worth it is up to you.

you may get proposals from the users around OCT they are into CY formation.
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Is it better to just go Hong Kong then? Since that is a comparable price and both require audited financials correct? But Hong Kong has a more straightforward tax system.

 

[brianK]

It's easy to avoid Cyprus taxes as an non resident in Cyprus, I don't think it is the same in Hong Kong where they have much stricter rules.

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[JustAnotherNomad]

lukey944 said:

• US LLC: Works but I already have one, and the US is becoming less favorable for foreigners.

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What do you mean?

 

[JustAnotherNomad]

brianK said:
It's easy to avoid Cyprus taxes as an non resident in Cyprus,
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What do you mean?

 

[drphantom]

lukey944 said:

• US LLC: Works but I already have one, and the US is becoming less favorable for foreigners.

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I would do this anytime with new business activity.

 

[brianK]

JustAnotherNomad said:
What do you mean?
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I've just read a lot of posts here on OCT and talked to several of the experts, so I stand by what I'm saying. Last week I was in Cyprus and got to see things for myself, there are plenty of opportunities on that little island.

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Winners never quit and quitters never win....

 

[mpao]

brianK said:
I've just read a lot of posts here on OCT and talked to several of the experts, so I stand by what I'm saying. Last week I was in Cyprus and got to see things for myself, there are plenty of opportunities on that little island.
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do you think Cyprus is a good option even if the CIT is going to increase to 15%?

 

[happyjohn]

lukey944 said:
Is it better to just go Hong Kong then? Since that is a comparable price and both require audited financials correct? But Hong Kong has a more straightforward tax system.
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I would go with a HK company in your situation, for sure.

 

[CyprusLaw]

mapo said:
do you think Cyprus is a good option even if the CIT is going to increase to 15%?
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The numerous tax incentives would still be in place, like for example tax free sale of securities, notional interest deduction, IP Box etc.

Also, just to clarify the proposed tax reform, including the increase to 15%, were part of the tax reform presentation which was prepared by the Ministry of Finance and the University of Cyprus, therefore it still has to go to the parliament for consultation and voting. I am not saying that the increase will not happen, but it's not yet done.