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Registration of a trading company
International trade and low tax countries are a combination of prestige and profit. Whether you are looking to expand your local business or start a business abroad from scratch, registering a trading company in low tax countries is a win-solution.
The first step in starting a trading business is to determine the category of goods or services that will be in demand among foreign consumers. Moreover, an important role should be given to the country in which the future company will be created. After all, with the right approach, this will not only get new customers, but also optimize the tax burden, ensure high profitability and liquidity of the company.
- to trade in the EU, you must obtain an EORI number for the company;
- each country has its own threshold for mandatory registration as a VAT payer;
- for certain categories of goods, reduced VAT rates may apply (individually for each country);
- a corporate account can be opened in the country of incorporation of the company or in Europe;
- some jurisdictions offer tax incentives for trading activities;
- trade in certain types of goods requires licensing (for example, medicines, tobacco products, alcohol, etc.).
Each country may have other features, it all depends on the category of goods or services, the geography of trade and future turnover. Our lawyers support you at all stages of setting up a European trading company abroad and opening a corporate account in a bank or payment system. Focusing on the business plans of our clients, we individually select the jurisdiction and the bank that will meet all the requirements.
Cyprus a suitable for different types of trade. Access to European and Asian markets. Income tax – 15%. VAT - 19%. Registration as a VAT payer is required if the annual value of taxable supplies exceeds 15 600 EUR. A company for international trade and a corporate bank account can be opened without personal presence.
The United Kingdom – a status jurisdiction with profitable trade routes to the EU and the USA. Income tax - 19-25%. VAT - 20%. If the company's annual turnover is over 90 000 GBP, VAT registration is required. The company is registered remotely, a local bank account requires substance and personal presence. You can also consider an account in the UK payment system without visiting the country.
Switzerland – a respectable jurisdiction for large-scale trade and business. Favorable trade routes. The export of goods is not subject to taxation. Income tax depends on the canton - from 12,6%. The most profitable will be Zug and Nidwalden. VAT – 7,7%. Mandatory registration as a VAT payer with an annual turnover of more than 100 000 CHF. Swiss company and account can be opened remotely.
Estonia – a country focused on trade with the EU. Corporate income tax - 0% if the company does not distribute income at the end of the financial year. The general corporate tax rate is 22%. VAT - 22%. Obtaining a VAT number is mandatory if the annual trading turnover exceeds 40 000 EUR. The company opens without a personal presence in 2-3 weeks.
Poland – a stable European country, suitable for cross-border trade. Income tax - 19%, for small businesses, a 9% exemption will apply. VAT - 23%. VAT registration is obligatory for annual turnover over 20 000 PLZ. All procedures for creating a company are carried out remotely. To open an account in a Polish bank, you will need to visit the country. You can also consider an account in European banks or payment systems.
Hong Kong – a suitable for trading on the Asian continent. Income tax – 16,5%, and for companies with a turnover of up to 2 000 000 HKD – 8,25%. VAT is not applied, and therefore VAT registration and reporting is not required. Also, imports and exports are not subject to taxation. You can register a company without visiting China in person, but a local account will require a visit. A corporate account is opened online in a European bank or payment system.
For a detailed analysis of your business needs, leave us a request, and we will select a legal solution for your goals and objectives. Jurisdictions for registering an international trading company are not limited to the list above, each client is analyzed individually, and other countries may be offered for him.