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Best way to start a company in US/EU?
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Best way to start a company in US/EU?

XIAOSpider97XIAOSpider97 Member, Provider
edited November 2015 in Help

Greetings guys,

We are a group of 5 guys, all of us lives in China, but we have to do some business in USA and we need to register a company overseas.

Also, we need to open a PayPal account.

Are there any good ways? If we register in EU... do we need to be screwed with VAT?

Pump Cloud has been sold on Sep 1 2018.

Comments

  • deployvmdeployvm Member, Provider
    edited November 2015

    @XIAOSpider97 said:
    If we register in EU... do we need to be screwed with VAT?

    VAT is paid by consumers where they reside in a country which is an European Union member.

    The type of ownership you choose is entirely based on your intentions and business model. Common types are sole trader, partnership or limited company (with shares).

    Like in many countries, you do not need to register for VAT unless you meet a certain income threshold. In the UK, if the income of the business exceeds £82,000, then you need to charge VAT and register for a tax number.

    If you register for VAT initially, then you must charge VAT on your goods or services.
    Usually, you do not charge VAT if the billing address of your client does not reside in the European Union where your business is VAT registered.

  • PayPal US needs you to have at least an SSN to open a business account. If you have an SSN, you are probably good to go, otherwise, my instinct is that you probably might want to look for a broker.

  • Check for a broker firm. But it would take some extra bits since you're from China afaik.

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  • jhjh Member

    Have you considered HK? I know a lot of Chinese companies register entities there to get around annoying legislation etc.

  • vfusevfuse Member, Provider

    How about incorporating in Hong Kong, tax wise should be much better than US or EU.

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  • XIAOSpider97XIAOSpider97 Member, Provider

    @vfuse said:
    How about incorporating in Hong Kong, tax wise should be much better than US or EU.

    Is it difficult to open a PP account?

    Pump Cloud has been sold on Sep 1 2018.

  • vfusevfuse Member, Provider
    edited November 2015

    @XIAOSpider97 said:
    Is it difficult to open a PP account?

    In HK? If you have a registered business in HK it should be pretty easy. Just like setting up a PP account anywhere else.

    NIXStats monitoring Web, Server(Linux, Windows - $9.95/m), Logging (Free!) and Blacklists (start at 512 for $3.75/m) - Uptime Report - API Docs

  • aglodekaglodek Member
    edited November 2015

    @XIAOSpider97 said: Is it difficult to open a PP account?

    Opening a PayPal account is a snap. Presumably what you are asking about is getting it verified. Getting this done for a HK company is simple, provided you already have a company bank account in HK. Registering and running a company in HK is simple. Opening the company bank account in HK is the hard part (for non resident Directors). Ditto re same for UK and US registered companies in their respective jurisdictions. Coming from China, I think HK is your best bet for many reasons. Feel free to PM me for more information if interested.

    Andrew Glodek | Special Projects Director | 香港國際商務中心 HONG KONG INTERNATIONAL BUSINESS CENTRE
  • AndreiAndrei Member
    edited November 2015

    @XIAOSpider97

    Just start a company in Hong Kong - that should be good enough for you guys. It's like $500 HK dollars

  • @Andrei said: Just start a company in Hong Kong - that should be good enough for you guys. It's like $500 HK dollars.

    Wut?

    Andrew Glodek | Special Projects Director | 香港國際商務中心 HONG KONG INTERNATIONAL BUSINESS CENTRE
  • doghouchdoghouch Member
    edited November 2015

    @XIAOSpider97 said:
    Greetings guys,

    We are a group of 5 guys, all of us lives in China, but we have to do some business in USA and we need to register a company overseas.

    Also, we need to open a PayPal account.

    Are there any good ways? If we register in EU... do we need to be screwed with VAT?

    Wwll, the reality is that the UK follows a wierd tax pattern. The customer pays VAT, which is taken from the company, which is given back (portion) to the customer, then refunded to the company. The problem is that you don't live in the UK, so you can't claim the tax back. Apart from that, formations in the UK are way cheaper than where I live (e.g. Canada) who charges an upward price of $500 CAD.

  • GM2015GM2015 Member
    edited November 2015

    No VAT is refunded to Non-VAT registered customers, ie some businesses and mostly regular consumers/people.

    Customers with VAT numbers(some sole-traders,some partnerships,most limited liability partnerships and limited companies, charities and foundations) can reclaim VAT on claim 0% VAT from their suppliers by showing their VAT registration documents.

    doghouch said: Wwll, the reality is that the UK follows a wierd tax pattern. The customer pays VAT, which is taken from the company, which is given back (portion) to the customer, then refunded to the company. Apart from that, formations in the UK are way cheaper than where I live (e.g. Canada) who charges an upward price of $500 CAD.

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  • @doghouch said:
    Wwll, the reality is that the UK follows a wierd tax pattern. The customer pays VAT, which is taken from the company, which is given back (portion) to the customer, then refunded to the company. The problem is that you don't live in the UK, so you can't claim the tax back. Apart from that, formations in the UK are way cheaper than where I live (e.g. Canada) who charges an upward price of $500 CAD.

    Why don't you incorporate federally? Only like $250 compared to the ridiculous fees charged g provincial registries.

  • @Gunter said:
    Why don't you incorporate federally? Only like $250 compared to the ridiculous fees charged g provincial registries.

    Paperwork, tax registration, no way I would do it myself.

  • hk easiest tbh..

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