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Most attractive country to register “foreign” company (LLC)?

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  1. #1

    Most attractive country to register “foreign” company (LLC)?

    Hi,

    Which country would you recommend to register an LLC in for an Internet business (meaning no physical presence actually needed in any particular country)?

    Interested in suggestions for a “foreign” company, e.g. NOT registering an LLC/Ltd in your home country/state, such as HK if you’re based here like me...

    I’ve been put off an LLC in HK given the maintenance fees and paperwork needed. All seems great when setting up initially, but if you’re going be breaking even for 2 years on low revenue, then it’s not worth it...

    Some considerations:
    - easiness of bank account setup (unless using a non-bank online service like “neat”
    - speediness of incorporation
    - taxes (corp rates, dividends, capital gains etc)
    - Maintenance requirements/fees: registered office (virtual), company security if needed, books filings etc

    Thanks!


  2. #2

    Join Date
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    Based on where I saw clients opening up "companies" to hold assets, British Virgin Islands is quite popular...


  3. #3

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    Wyoming LLC + Transferwise account is pretty easy and cheap to do.


  4. #4

    Correct me if I’m wrong, but the Wyoming LLC + TransferWise setup... TransferWise does not act as a US bank account? Instead, it’s just a payment service provider for FX?

    I could be wrong though, but all I’ve heard is that it’s very difficult to get a US business bank account when registering a legal entity (LLC) in the US as. Non-Resident and non-citizen?


  5. #5

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    Quote Originally Posted by MABinPengChau:
    Based on where I saw clients opening up "companies" to hold assets, British Virgin Islands is quite popular...
    Holding company is ok, to protect assets, which could be the shares in the local company or whatever other assets.

    To remain clear, you'd still need a local company registered if you're doing business in HK.
    MABinPengChau likes this.

  6. #6

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    Quote Originally Posted by INeedFriends:
    Correct me if I’m wrong, but the Wyoming LLC + TransferWise setup... TransferWise does not act as a US bank account? Instead, it’s just a payment service provider for FX?

    I could be wrong though, but all I’ve heard is that it’s very difficult to get a US business bank account when registering a legal entity (LLC) in the US as. Non-Resident and non-citizen?
    It's a real bank account with Community Federal Savings Bank.

  7. #7

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    Quote Originally Posted by MABinPengChau:
    Based on where I saw clients opening up "companies" to hold assets, British Virgin Islands is quite popular...
    For the avoidance of doubt you can't set up LLC's in BVI. You can set up a BVI business company, which is a company limited by shares. This is different to an LLC.
    MABinPengChau and shri like this.

  8. #8

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    Ah, didn't really focus on the LLC part...

    Also, there seems to be a lot of arguments over where Internet companies are "doing business" so I guess would need to know more about the nature of the "Internet business..."


  9. #9

    Let’s say an Amazon e-commerce business selling products in the US or Australia for example.

    The other thing that’s quite interesting that I read on HK gov (and I could be completely wrong here as it’s not too easy to interpret) - if NOT selling products in HK, and running a business NOT registered in HK, then there might be even less tax to actually pay while physically residing in HK?

    That’s not my main motivation to registering elsewhere, but it doesn’t do any harm

    Yes, you’d still notify IRD of the fact you are here and with a “foreign” company, but if that company is not actually trading in HK with suppliers or customers, then no taxes due (IRD evaluate on a case by case basis).

    I’m thinking to get started I will just go down the route of HK Sole Proprietor.... seems very fast and easy (albeit without the limited liability etc).


  10. #10

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    Quote Originally Posted by INeedFriends:
    Let’s say an Amazon e-commerce business selling products in the US or Australia for example.

    The other thing that’s quite interesting that I read on HK gov (and I could be completely wrong here as it’s not too easy to interpret) - if NOT selling products in HK, and running a business NOT registered in HK, then there might be even less tax to actually pay while physically residing in HK?

    That’s not my main motivation to registering elsewhere, but it doesn’t do any harm

    Yes, you’d still notify IRD of the fact you are here and with a “foreign” company, but if that company is not actually trading in HK with suppliers or customers, then no taxes due (IRD evaluate on a case by case basis).

    I’m thinking to get started I will just go down the route of HK Sole Proprietor.... seems very fast and easy (albeit without the limited liability etc).
    If you are a resident living in HK you will be taxed here. The offshore exemption does not apply.
    shri and INeedFriends like this.

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