Which Cost effiency offshore structure for French Consultants Freelancers launching a New ECOM ?

[Abiz]

Hi everyone,

We are two French residents Freelancers in Business consultancy

Beside our core business, we are now launching an ECOM and are looking for a good offshore structure for our business.

Currently we are in a dynamic of cost efficiency – for a little turnover of 150K we faced overall taxes of 95000 – Remaining only 55 000 for a family of 4 with children heading to the University ...

French laws oblige us to run our ECOM under a separate entity so we need to do things in a better way this time

• Which country would be the best fit for our needs ?
  
• Our ECOM customers will be from Netherlands and Belgium
  
• We have plans on getting residency in a more tax friendly Jurisdiction and we are looking for a structure that will defer the tax (for example the profits remaining in the offshore company) until we can move elsewhere.
  
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• we are thinking of a Gibraltar company as an option, as its foreign income is not taxed in Gibraltar. Also, it is close so we can think of moving there in a short term
  
• we aren't sure if it is the best option for a cost efficiency purpose, from company formation to book keeping, accountant fees and legal compliances
  
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• Which structure would be the best ?
  
• Offshore Holding owns – ECOM trading company + Consultancy company
  
• Offshore Holding owns – 1 trading company with both activities of ECOM + Consultancy company
  
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• Our consultancy customers are French, From the US and From the UK
  
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• Which type of legal entity should we form ?
  
• Please, do you know a fast, reliable , cheap company formation agent that could help us realize this project?
  
• we would appreciate any input from experienced and savvy people in this area. We are also open to any other idea so , please, feel free to share your thoughts with us.
  
• Ideas on the bank to choose are welcome as well
  
  
  
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• Again, we would appreciate any feedback or recommendations.
  
  Thanks for your time.
  

 

[aniglo22]

You would need to move your residency to achieve any substantial tax savings, as your‌ budget is very constrained (no funds available for establishing substance).
Deferring tax won't be possible‍ , because of CFC and lack of substance => company will be managed & controlled⁠ from France => Company tax resident in France.
I would suggest relocating to Bulgaria or⁤ Hungary.
Even if you move to Gibraltar, performing your consultancy work from there would source⁣ the income in Gibraltar. As a result, you wouldn’t benefit from the territorial tax system,⁢ and there would be no tax savings.

 

[Abiz]

Thank you very︀ much for your Input !
PLease, why specifically suggesting relocating to Bulgaria or Hungary ?︁
can you tell me more, what are the advantages ?

 

[aniglo22]

Low tax rate

 

[Abiz]

Great, will pursue some research in that‌ direction !
Thank you very much !