Ask HN: Where should I incoporate my business • Hacker News Board

Re: Ask HN: Where should I incoporate my business

#21

Post by woutr_be » Sun, Dec 17, 2023, 9:11 AM UTC

anonzzzies wrote: post #18

woutr_be wrote: post #11

Hong Kong is another option, incorporation fees are quite low + ongoing cost is relatively low. Corporate fees capped at 16.5%, with the first 2 million HKD only 8.25%. Can all be done online and remotely as well. Additional benefit that you can apply for an APEC visa to make traveling around easier.

Last time I set up there it was a headache to get a bank account though; that might have changed (but I can hardly believe it got easier).

Definitely was easy for me, I first used Neat (now Rapyd), and currently using AirWallex. Both applications took about 2 days or so.

Re: Ask HN: Where should I incoporate my business

#22

Post by nevodavid10 » Sun, Dec 17, 2023, 9:12 AM UTC

petesergeant wrote: post #19

nevodavid10 wrote: post #15

Earlier quoted context omitted.

The setup fee is so high, that it's basically an exchange for the taxes haha! I also understand I need to pay around 90 days there.

> I also understand I need to [stay] around 90 days there. UAE doesn't seem to care in practice, unless you need them to issue you a tax certificate. Your issue there is more with not attracting tax residency in other jurisdictions, and being able to say "I can't be resident in [Canada/Australia/other country with fuzzy rules] because I live in UAE"

Honestly, I think my biggest problem with the UAE is that I am Israeli, and while the situation with Israel and the UAE us good now, how knows what will happen in a few years from now

Re: Ask HN: Where should I incoporate my business

#23

Post by a_lex » Sun, Dec 17, 2023, 9:12 AM UTC

a_lex wrote: post #9

Consider UAE freezone. Setup is not cheap, but corp tax 0% (9% after 1M revenue), personal tax 0%. I welcome differing opinions

License cost is about ~4k per year

Total initial costs could be about 10-15k

Yes I agree those fees are actually a hidden tax, but it totally depends on your revenue, at some point you can save a lot on corporate and personal taxes.

Re: Ask HN: Where should I incoporate my business

#24

Post by nevodavid10 » Sun, Dec 17, 2023, 9:13 AM UTC

woutr_be wrote: post #21

anonzzzies wrote: post #18

Earlier quoted context omitted.

Last time I set up there it was a headache to get a bank account though; that might have changed (but I can hardly believe it got easier).

Definitely was easy for me, I first used Neat (now Rapyd), and currently using AirWallex. Both applications took about 2 days or so.

I know people suffer a bit from Rapyd after the acquisition

Re: Ask HN: Where should I incoporate my business

#25

Post by woutr_be » Sun, Dec 17, 2023, 9:14 AM UTC

nevodavid10 wrote: post #24

woutr_be wrote: post #21

Earlier quoted context omitted.

Definitely was easy for me, I first used Neat (now Rapyd), and currently using AirWallex. Both applications took about 2 days or so.

I know people suffer a bit from Rapyd after the acquisition

I only used my account for about 2 months, because it caused a lot of confusion. Your account name was prefixed with “NEAT”, so few of my clients just ignored that and money never arrived. Switched to AirWallex and never looked back.

Re: Ask HN: Where should I incoporate my business

#26

Post by a_lex » Sun, Dec 17, 2023, 9:15 AM UTC

hasty_pudding wrote: post #12

a_lex wrote: post #9

Consider UAE freezone. Setup is not cheap, but corp tax 0% (9% after 1M revenue), personal tax 0%. I welcome differing opinions

From a quick search: As a rule, Free Zone licenses must be renewed every one to three years, and generally range in cost between 2700 to 13000 USD. I don't know if that's accurate or not though.

this is true, you need to renew it. Example cost for IFZA: 1 year license $4150 2 year license $8165

Re: Ask HN: Where should I incoporate my business

#27

Post by izebear » Sun, Dec 17, 2023, 9:16 AM UTC

Maybe a Ltd in Cyprus is a good option. Corporate tax rate is 12,5% with exceptions for income from outside the country. And it is near Israel and in the EU.

Re: Ask HN: Where should I incoporate my business

#28

Post by petesergeant » Sun, Dec 17, 2023, 9:16 AM UTC

nevodavid10 wrote: post #22

petesergeant wrote: post #19

Earlier quoted context omitted.

> I also understand I need to [stay] around 90 days there. UAE doesn't seem to care in practice, unless you need them to issue you a tax certificate. Your issue there is more with not attracting tax residency in other jurisdictions, and being able to say "I can't be resident in [Canada/Australia/other country with fuzzy rules] because I live in UAE"

Honestly, I think my biggest problem with the UAE is that I am Israeli, and while the situation with Israel and the UAE us good now, how knows what will happen in a few years from now

Yeah, I get your point. Personally, as a UAE resident (with no other ties to UAE or Israel) I'd see it getting better over time rather than worse, but we're living in interesting times.

Re: Ask HN: Where should I incoporate my business

#29

Post by nevodavid10 » Sun, Dec 17, 2023, 9:17 AM UTC

izebear wrote: post #27

Maybe a Ltd in Cyprus is a good option. Corporate tax rate is 12,5% with exceptions for income from outside the country. And it is near Israel and in the EU.

I was thinking about that. I had a friend who had done it.

Re: Ask HN: Where should I incoporate my business

#30

Post by petesergeant » Sun, Dec 17, 2023, 9:20 AM UTC

I'm incorporated in Isle of Man. Stripe isn't available, but others are. 0% tax, it absolutely looks like you're incorporated in the UK for anyone who doesn't know what to look for (UK phone number, VAT number, UK-looking address, UK sort-code, etc). Banking is a PITA, but I've been making it work with Wise. You'll probably shell out at least $5k a year in accountancy and service fees. Also it's small enough that your accountant can ring up his buddy Fred who's the Tax Minister this year to get clarity on any points of law.