When choosing the area of jurisdiction for your online startup many questions come to mind, like whether remote registration is possible, the taxation system, etc., and this article aims to clear away any misconceptions regarding the matter.
An online startup’s access to the banking system, payment, and merchant accounts is dictated by the area’s popularity in the market as well as the competence and professionalism of its managers.
While tax rates used to be a major point in choosing where to open your startup, they have been obsoleted through time, and even if an area has low or no tax policies, just consider it a bonus, as proper management of a startup is far more important of a step towards turning a profit.
Due to the market’s shift towards a more internet-focused one, online startups are bound to be fruitful this year, especially for those offering remote services, mobile apps, online stores, and enabling clients an entry into the world of startups by helping them register their own.
The only real requirements are to be transparent and have your operation be run legally, and you’re good to go.
The British Virgin Islands
Any list ranking the top offshore jurisdictions will put this country high up on the list, and with flexible legislation, low taxes, and a positive reputation in the international market, there’s no doubt why it’s so.
Opening a startup is fully remote and managing it is possible from any part of the world, the USD$ is the official currency, and companies that do not generate income in the BVI are not required to pay tax.
Canada
With its rapidly growing economy and a large domestic market, Canada is the obvious second choice, as the country is largely populated by IT companies with an excellent reputation, as well as the fact that they offer foreign investors a 0% tax rate if the business is registered in Canada itself but doesn’t generate income within the country itself.
The internet infrastructure is geared towards online businesses and the physical proximity of the US opens further horizons for company owners, creating possibilities to generate income in US markets.
The USA
Ah, the American dream, and now even more achievable through an offshore business’ guaranteed success due to the country’s seemingly endless opportunities to turn a buck or two.
The diverseness of the domestic market makes it a great stepping stone for beginner entrepreneurs and billionaires alike.
Furthermore, registering your business in Wyoming or Delaware creates an opportunity to evade federal and state taxes through the passthrough taxation principle.
Estonia
Estonia seems to have capitalized on the fact that many have opened offshore businesses within the country, optimizing its policies to become a hub for digitally managed business.
The legislative infrastructure allows for Online and IT businesses to be managed as well as registered remotely, with the added benefit of 0% corporate tax, only requiring the 20% VAT which is a common thing in all EU countries.
Hong Kong
Finally, Hong Kong is an example of what a modern economy could evolve into through focusing on flexibility, transparency, and most importantly, results.
An online startup can be fully registered and set up to be managed remotely within a couple of days, and while opening a bank account in Hong Kong may have become a Kafka-esque process over the past couple of years, anything is achievable through proper consulting.
The country has long since surpassed its title of a gateway to China as it now provides online companies with access to trading and financial services throughout Asia and the rest of the world.