legal, internationalOne of the benefits of registering as an online business in Estonia is the tax breaks given to the companies. However, this requires the business entity to have a registered physical location in that country as well as bank account details. Just wondering if anyone has experiences with companies that help set up physical and virtual offices in Europe that can share some experience and the things to look out for.
As far as I know, every country requires the business entity to have a registered physical location in the country, in addition to one or more resident "officers of the company" (managing director, company secretary) and bank locally. A company is protected by the laws in that country and all the professional institutions in that country must also follow their laws. Thus allowing you to keep your funds in another country would weaken the reach of their laws, hence why everything is contained within its borders.
Deleware (US), Cayman Islands are one of many locations that do well for similar purposes.
I have considered, but avoided such steps over the years. Your income still has to be declared in your country of residence so if your taxman see's you receiving regular money from Estonia, he'll likely keep a close eye on you. Tax efficiency is legal, tax avoidance is illegal. Bank deposits of more than 10,000GBP or 10,000Euro from foreign countries must be reported by you and/or the bank. Banks report it or face a fine and/or loss of their banking license.
Any cash held off shore will be in an entity outside your direct control. Yes, legal documents can be signed that promise you the sun, moon and stars but chances are, if disagreement comes into play, you'll have to fight in foreign court. Don't expect your local MP to help your cause.
When it comes to play with tax, you need expensive advice to help you keep track of the various law changes that can take play between your country and Latvia, and if you are in the EU, law changes that take place between your country and the EU. You cannot outsource your tax responsibility or accountability, so, even with excellent advice, if it's the wrong advice, you get fined and/or jailed.
The taxman will not be amused or understanding because of your misunderstanding.
Lastly this read on the BBC: Billion Dollar ex-council flag might interest you...
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