I want to start an online business with sole 100% foreign ownership. As it's an online Marketing and Design business, the registration for me is just a legality and something that will support my credibility. All my operations will be conducted online. I've read many articles about the best countries to start a business in, and I can see many recommendations going to New Zealand, Australia and Singapore. I've read a lot about each country but I also believe getting practical recommendations is essential. Which country do you recommend for an online business model? In terms of ease of starting a business, laws, country stability, credibility, taxes and ease of business growth in terms of operations (such as office rental costs..etc) Looking forward to hearing from you and even talking further about it after your answer.
I have registered over 20 companies in the last decade and from my experience I can tell you that every country serves a different purpose. I run a small gambling company that I have registered in Malta due to the legality of online gambling there. I have another company registered in Delaware, whilst my main company is registered in the Netherlands. If your business is only online I would advise you to register it in Europe or if you must in the United States in Delaware/Nevada. Credibility wise I would say that registering your company in Singapore or Malta or Costa Rica, will not benefit you much opposed to say Delaware or The Netherlands.
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Answered 9 years ago
This is highly contingent upon where you are based (and official tax resident) as you stated you will be the sole owner. Recommend you speak to a tax attorney for this regard.
Since you are a sole owner, an LLC might provide better liability/asset protection. One country to look at may be Nevis - which gives excellent asset protection and is 'tax-transparent'.
A LLC in a pro-business state in the USA (Wyoming, Delaware, Nevada) is another option which has a good reputation, and low cost to get up and running. However, longer term accounting and compliance can be more expensive than some other jurisdictions.
You mentioned supporting your credibility - in that regard Singapore and Hong Kong are two reputable jurisdictions with minimal red tap, with 0% effective taxation possible if no transactions take place in the jurisdiction*. This is a general overview and not legal or tax advice.
Answered 9 years ago
To set up an online marketing and design business there are several factors to look for:
1. Tax Implications & Treaties: One of the key things that can really impact your and your investorsโ returns is whether there will be a tax impact to you, your employees, and co-founders.
2. Investors: They might have a preference on where you incorporate due to tax relief, which they may receive as part of investing in your company. In addition to this, company governance may be affected by where you are incorporated. Certain company governance structures are enforced on your company depending on where you incorporate, and investors may have an opinion on that.
3. Human Resources: It may be difficult for your employees to move to certain countries if necessary.
4. Mergers and Acquisitions: When your company does eventually get sold, merged, or floated, itโll have to go through a process.
The following countries would be best choice for you:
1. The British Virgin Islands โ Easy Banking
2. Denmark โ Tax Efficient, Flexible Hiring and Firing
3. Norway โ Digital Communication
4. New Zealand โ Fast Setup
5. Singapore โ No Capital Gains Taxes
6. Isle of Man โ Zero Tax
7. Belize โ Internet Entrepreneurs
8. Nevis โ Asset Protection
9. United States โ Tax Breaks
10. United Kingdom โ One-hour Setup
Honourable Mentions:
Canada โ like the United States, except more taxes; aim for Alberta
Malaysia โ all the benefits of larger markets with less costs
South Korea โ the land of innovation and tech is a good location to set up shop
Switzerland โ great banking options
Thailand โ ideal for any digital business, as it is a digital nomad haven
Sweden โ like Norway, just not quite as optimized
Australia โ great place to launch a small business
Netherlands โ great place to launch any new business
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered 4 years ago
Check this out: https://www.trade.gov/export-solutions (International Trade Administration). Also check here regarding the ease of doing business on a multinational level https://www.doingbusiness.org/en/rankings . I am able to navigate this information to provide an analysis based on your inquiry.
Answered 4 years ago
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