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Tax Engineering

E-Commerce Package

Do you want to move your E-commerce company out of your country of residence? Do you want to repatriate the benefits of the company to your country when you really need them? Do you want to save time and money? Many entrepreneurs due to the tax burdens and social expenses that exist in high tax countries ask these questions. When a natural person sets up an E-commerce company in a country with high taxes, the situation in which he normally finds himself in is the following:

  • If the company is a limited public company or limited the registration costs of the new company are high: business registration expenses, notary fees, advisory expenses and registration taxes.
  • Depending on the country, the disbursement of the share capital for a limited company ranges between 2,000 euros and 35,000 euros. If we speak of corporations (SA) the disbursement could reach from 60,000 euros to 150,000 euros.
  • Usual time to form a company is from 1 month to up to 3 months.
  • The maintenance costs for tax advisory and mandatory annual tax presentation are excessive. In countries with high taxes, it is mandatory to present the annual accounts and to suffer withholdings in corporate tax without knowing what will happen next year. Many countries are taking measures obliging companies to pay part of their corresponding taxes without knowing whether the corporate tax will be positive or negative the following year. If the tax is positive, the company will compensate the taxes paid with which it has to pay. But what happens if the result is negative? The company will have to claim the money paid to the tax agency with the corresponding problems before a review.
  • The social insurance for directors and employees is very costly. Depending on the country, monthly social security payments range between 50 euros and 400 euros/month.
  • Withholding of income taxes for employees of the company.
  • Commercial registers are public. Why does a person I do not know have to know whether or not I am the shareholder or director of a company? Currently, most commercial registers are public and anyone can know if a natural person has shares in a company or not.

Types of jurisdictions according to the tax rates they impose?

By moving your company from onshore (high taxation) to offshore or from onshore (high taxation) to a more lax offshore jurisdiction you can solve easily all the problems described above. In order to change correctly the country of registration of your e-commerce business we have to identify the jurisdictions according to their rate of taxes:

You can see that there are at least 7 problems that we described above which an entrepreneur faces when he sets up a company in high tax onshore jurisdiction.

Lax onshore jurisdictions

Normally these are the countries specialized in e-commerce. Among the lax onshore jurisdictions we can find: United Kingdom, Ireland, Malta, Estonia, Latvia, Bulgaria, Cyprus, Czech Republic, Hong Kong, Singapore, Canada, United States, Israel. Lax onshore jurisdictions are characterized by the following:

  • Registration fees and expenses are economical.
  • The amount that corresponds to share capital and that has to be disbursed is very low. In countries such as the United Kingdom and the United States, the disbursement of share capital would be 1 pound and 1 US dollar.
  • Company formation takes from 1 to 2 weeks only.
  • In lax onshore jurisdictions you have to keep accounts, pay corporate taxes and present them. The lowest tax rates per countries are in Cyprus (12.5%), Bulgaria (10%), Ireland (12.5%), United Kingdom (20%), Hong Kong (16.5% if you do business in Hong Kong, however, if you do not carry out commercial activities on the territory of Hong Kong, the tax rate would be equal to 0%).
  • There are no withholdings of corporate tax.
  • There are no expenses for social insurance.
  • There are no withholdings in the taxes of the income of the employees if they are contracted in a country different to the country of registration of the company.
  • The commercial registers are public but there is the possibility of contracting Nominee in order to give anonymity to a final beneficiary.

Offshore jurisdictions

These are the countries that promote e-commerce activities creating favorable regime by not charging any type of corporation tax to companies whose activity takes place outside of the country. The highlighted jurisdictions are Belize, Panama, Costa Rica, Hong Kong, Singapore and Mauritius. Offshore jurisdictions specializing in e- commerce are characterized by:

  • Incorporation fees and expenses are cheap.
  • There is no disbursement of share capital.
  • The companies are registered quickly, within one week.
  • Accounting and financial reports must be kept depending on the country but without obligation to present them.
  • There are no corporate tax withholdings.
  • There are no expenses for social insurance.
  • There are no withholdings in the taxes of the income of the employees if they are contracted in a country different to the country of registration of the company.
  • Depending on the country, the commercial registry can be public or private.


When contracting our E-Commerce package and opening a new company or moving an e-commerce company to a lax onshore jurisdiction or an offshore jurisdiction the client has to take into account several factors, such as: if you are going to need a virtual POS terminal for cards processing over the internet, if the company is going to operate in the European Union or abroad, if the client receives the product and / or service in the same country where sales take place or on the contrary carries out dropshipping operations, if you are going to need intracommunity VAT number.

Our E-Commerce packages contain the following services:

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Offshore Company

Bank accounts

Prepaid cards

E-commerce package

Payment gateway

Online gambling license

Private foundations