Agency start-up - choice of foreign country
Thread poster: Casey Collins

Casey Collins  Identity Verified
Australia
Local time: 15:24
Member (2010)
English
+ ...
Jun 14, 2010

I am planning on taking the plunge and establishing my own translation agency. I often spend time in Finland and Estonia because of my partner's work, so I asked about starting a business in those countries, but they require a permanent EU address, which I don't have because I am an Australian citizen. I will eventually start a business in Australia, but not in the near future, so alternatives are needed.

Any suggestions on which countries would allow me to start a business without officially living there? The translation agency would be like most online agencies, with a web site, paying freelancers for translations, etc.


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Mohamed Mehenoun  Identity Verified
Algeria
Local time: 05:24
Member (2008)
English to French
+ ...
I'm interested too if you find an answer please tell me.. Jun 15, 2010

Casey Collins wrote:

I am planning on taking the plunge and establishing my own translation agency. I often spend time in Finland and Estonia because of my partner's work, so I asked about starting a business in those countries, but they require a permanent EU address, which I don't have because I am an Australian citizen. I will eventually start a business in Australia, but not in the near future, so alternatives are needed.

Any suggestions on which countries would allow me to start a business without officially living there? The translation agency would be like most online agencies, with a web site, paying freelancers for translations, etc.


Hello,

I'm interested too in doing it, so if you find an answer please, do tell me.

As far as I'm concerned, I believe that a local partner is needed.

Best regards,

Mohamed


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Rifraf
Local time: 05:24
yet another internet agency Jun 15, 2010

Casey Collins wrote:
Any suggestions on which countries would allow me to start a business without officially living there? The translation agency would be like most online agencies, with a web site, paying freelancers for translations, etc.


I'm sorry, but I do not know the answer to your question. The only thing I immediately thought was: Just what we need in these difficult economic times: more internet agencies


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Sergei Tumanov  Identity Verified
Local time: 06:24
English to Russian
+ ...
Estonia Jun 15, 2010

You CAN start business here.
The regulations require that 50% of the board must be residents of Estonia.
You will need to employ someone to prepare monthly social tax declaration and annual financial statements anyway. The guy can be your member of the board as well.

A big plus is that a corporate profit tax rate is 0% in this country.
And you don't need to register for VAT until certain threshold of revenues is reached.

You can buy a fully operational off-the-shelf company for about 500-700 euro.

[Edited at 2010-06-15 14:33 GMT]


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Sheila Wilson  Identity Verified
Spain
Local time: 04:24
Member (2007)
English
+ ...
Is there a good reason not to base the company in Australia? Jun 15, 2010

Casey Collins wrote:
I will eventually start a business in Australia, but not in the near future, so alternatives are needed.


Is there a good reason not to base the company in Australia now, if that's where you live? Surely, that must be by far the simplest solution, unless Aus is really awful.

I come from England, where it's very easy to set yourself up as a freelancer, but I never thought of setting up there - I live in France, which was both difficult and expensive until a short while ago, so that's where I operate from.


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Samuel Murray  Identity Verified
Netherlands
Local time: 05:24
Member (2006)
English to Afrikaans
+ ...
On owning less than 51% of your own business Jun 15, 2010

Sergei Tumanov wrote:
The regulations require that 50% of the board must be residents of Estonia. You will need to employ someone to prepare monthly social tax declaration and annual financial statements anyway. The guy can be your member of the board as well.


Can that guy somehow get rid of you, then?


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Casey Collins  Identity Verified
Australia
Local time: 15:24
Member (2010)
English
+ ...
TOPIC STARTER
Board member rights - 50%? Jun 15, 2010

Thanks for your reply Sergei. What rights would my board member have? Would the company be 50% his in everything, decision making, etc

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Madeleine MacRae Klintebo  Identity Verified
United Kingdom
Local time: 04:24
Swedish to English
+ ...
Probably quite a few Jun 15, 2010

Casey Collins wrote:

Any suggestions on which countries would allow me to start a business without officially living there?


But unless you intend to keep all profits, and your potential income, in that country, the Australian tax authorities might want a word with you. Tax avoidance is one thing, tax evasion another.

The (international?) rule is that you pay taxes in the country where you spend the major part of your time. This is generally assumed to be 6 months + 1 day (and in the UK recently there have been judicial rulings which disregard this timeframe if a person is proven to have a substantial connection to the country such as children's schools, property, etc.).

My guess is that setting up a small/one person operation abroad for the sole purpose of avoiding/evading taxes is unlikely to be viewed favourably by the Australian tax authority.

Unless your planning to start a major multinational company, I suggest you go back to the drawing board. Number 1 on your todo list should be contacting an accountant with international experience.


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LegalTransform  Identity Verified
United States
Local time: 23:24
Member (2002)
Spanish to English
+ ...
Translation agency in a box Jun 15, 2010

There is a company that will actually help you set up your own on-line agency. They supply all the software and the whole system is automated:

http://www.lsp.net/


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Alina - Maria Chiteala  Identity Verified
Romania
Local time: 06:24
Member (2011)
English to Romanian
+ ...
Romania Jun 16, 2010

I do not know for sure but I think you can establish a company only by renting a headquarters, even if you do not have the address here. I'll look into this and get back to you
You can sent an e-mail to http://www.infiintarifirme.ro/en.
Please do not consider this as ads or something like that, it is only the first link google provides


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