- Joined
- May 2019
- Messages
- 6,542
billybobs said:1. I don't like having all these sites using only a few payment processors incase 1 processor is band, it causes problems for most of the sites. Does anyone have a solution to have payment processors (stripe / other) under different companies / peoples names? Is it legal to have a company whose only role is to process payments and send the payouts to another company?
Yes, this is a very common setup especially for non-EU businesses. You set up a company in the EU which collects payments on behalf of its parent. You need to be careful when you set it up, especially if it's servicing multiple brands, but it can be done.
Shouldn't be a problem spreading your traffic across multiple processors.
billybobs said:This will apply now and when we are in Dubai, as I don't want all payment processors in a few names. Anyway to get any of the money from the payment processors into crypto? I also don't want a direct link between my Dubai companies and the services / goods we sell / payment processors, incase there is any issues in the future. I see something like -
The payment agent must be a subsidiary or other closely related company (within an arm's length). Otherwise, you're effectively engaged in a publicly-facing financial service and need a payment institution license or equivalent.
billybobs said:2. What is my best plan over the next 18 months? The simplest way is to pay the money to the UK company bank accounts and pay 23% corporation tax, and remove no money for me personally. The UK companies could then invest or loan the profits to my Dubai companies now or in 18 months time. Is there any solution with me still being a UK tax paying resident for the next 18 months to not pay the UK corporation tax?
Probably not. UK companies are tax resident by default just by being incorporated there, and that residence is further solidified by you living there. There is the concept of treaty non-resident but I don't see how it'd apply in your case.
billybobs said:3. We sell products and services to UK and EU consumers. As you know VAT regardless of where your company is located will need to be charged and paid in the very near future for any UK / EU sales. Is there anyway to avoid charging / paying UK / EU VAT? We could obviously just not charge it and just not pay it to the EU, but what could be the ramifications? Could we route the money through some offshore company to our Dubai companies for 12 months, then close the offshore company and start another and repeat process? How about payment processors / credit card processors reporting us / or disclosing our company?
For this type of business, EU VAT is owed based on where the buyer is located, not where the seller is located. If you don't invoice with VAT, your customers likely have to pay VAT when they receive the item.
