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Ask HN: Best country to run a boostrapped startup from? (After Section 174)

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Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#11

Post by jacquesm »

altdataseller wrote: post #2

Where will most of your customers be? If this is a startup with an enterprise sales component, that's important to know, because you'll be doing sales calls with them (at least initially)

This is the right answer. Your legal entity is best and easiest located where your target market is because that will streamline all of the administrative details that otherwise become possible blockers. Where your employees are isn't all that relevant, that could, especially with today's support for remote workers, be theoretically anywhere.

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#12

Post by fy20 »

woutr_be wrote: post #3

I run a business in HK, and generally it’s incredibly easy. Easy to set up, accounting is easy, ongoing fees are fairly low. So far I haven’t encountered any issue. But I’m well aware of the political issues being registered in HK might bring, and some (especially US) businesses might be wary of doing business.

If you want something more aligned with the US, the UK is a good choice. You can set up everything online for around £20 and for small businesses you don't technically need an accountant to file yearly accounts. They are friendly to company owners not being UK based.

Corporate tax rate on profits are 19% - 25% though.

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#13

Post by Grimburger »

To be domiciled in Singapore but then run it from Malaysia is a good option. SG has solid tax incentives for startups and operating costs across the border are tiny, rent and bills are a rounding error, it gives you a lot of runway to work with.

I've been through the MDEC entrepreneur visa process and it was all fairly straightforward. Believe they have one of these digital nomad visas also now, if you are pulling out personal income while working on the business that's perhaps an alternative.

If you are willing to pay the higher corporate rate by domiciling directly in Malaysia then you can also apply to get a business visa as an employee instead.

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#16

Post by greenSunglass »

Taiwan starts enforcing the CFC rules in 2023. if you open a company outside Taiwan in a low-tax jurisdiction (liek Singapore), the revenue and profits of that company might be subject to taxation in Taiwan under the CFC rules. But there is some exemptions : https://taxsummaries.pwc.com/taiwan/corporate/significant-de...

If you intended to pay yourself in dividends from outside Taiwan: Taiwan Taxman will ask you if the dividends were generated from the work done while in Taiwan.

Open a Taiwan company? Probably not, it's such an hassle to get payments from the US with Taiwan's fintech (no stripe like company yet that make payment easy)

A shameless plug: if you are a dev in Taipei/Taiwan and want to talk to like minded developer, try taipeidev community:

https://join.taipeidev.com

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#17

Post by vintagedave »

I cannot answer for Taiwan, but if you're interested in an EU-based company registration from abroad, I recommend Estonia. The tax system is extremely straightforward: a company pays tax for its employee's wages (so, no tax for contractors, for example.) Flat rates, very easy to understand. In addition it's a very IT-based country; not relevant if you're not personally resident but worth being aware.

In my experience explaining the tax system here, which takes _less than a single page of text to understand_, generally blows most US citizen's minds :) It is very business-friendly.

Check the section "Estonian tax system" on this page: https://learn.e-resident.gov.ee/hc/en-us/articles/3600007215...

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#18

Post by csomar »

It'll depend on how you sell to your customers. Do you have 2/3 very large invoices in a year; or are you in the subscription model with thousands of customers.

Malaysia+Singapore/UAE is a good combo. Malaysia is cheap and loose. Sg/UAE have decent banking and low taxes.

My advice, however, is to just start as long as you can process payments. You can care about jurisdiction and taxes later when you have enough money.

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#19

Post by woutr_be »

fy20 wrote: post #12
woutr_be wrote: post #3

I run a business in HK, and generally it’s incredibly easy. Easy to set up, accounting is easy, ongoing fees are fairly low. So far I haven’t encountered any issue. But I’m well aware of the political issues being registered in HK might bring, and some (especially US) businesses might be wary of doing business.

If you want something more aligned with the US, the UK is a good choice. You can set up everything online for around £20 and for small businesses you don't technically need an accountant to file yearly accounts. They are friendly to company owners not being UK based. Corporate tax rate on profits are 19% - 25% though.

The 16.5% corporate tax is definitely a benefit here, and for now it makes sense because I also live here.

If I were to return back to Europe, the UK might indeed be a decent choice.

Re: Ask HN: Best country to run a boostrapped startup from? (After Section 174)

#20

Post by ulfw »

woutr_be wrote: post #3

I run a business in HK, and generally it’s incredibly easy. Easy to set up, accounting is easy, ongoing fees are fairly low. So far I haven’t encountered any issue. But I’m well aware of the political issues being registered in HK might bring, and some (especially US) businesses might be wary of doing business.

And there's no jobs in HK. And no real tech. I haven't found anything here in a year. Looking to leave in the coming months.
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