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If I was setting up a SaaS company outside of the US, I'd be concerned with tax rates, acquiring a bank account and processing credit cards. It is worth noting

If I was setting up a SaaS company outside of the US, I'd be concerned with tax rates, acquiring a bank account and processing credit cards. It is worth noting that you don't necessarily have to have your bank account in the same jurisdiction that the company is incorporated. There are many zero tax offshore jurisdictions (like BVI and Cayman Islands) and at a large scale you can get bank accounts and process credit cards anywhere. But, starting from zero I think it's a lot easier to use Stripe or Braintree. I've listed several jurisdictions that are compatible with Stripe and Braintree by corporate tax rates. You may be able to achieve a lower rate by paying yourself a salary. Stripe & Braintree Ireland (12.5%) Singapore (17%) United States (~35%) United Kingdom (~20%) Braintree Lichtenstein (12.5%) Isle of Man (0%) Jersey (0%) Guernsey (0%) So, I would consider Ireland and the above Crown dependencies. Sources: https://www.braintreepayments.com/country-selection https://www.braintreepayments.com/country-selection https://stripe.com/global https://stripe.com/global

55555 11y ago
I would think that to be approved for Stripe or Braintree in anything close to a haven, Singapore included, the underwriting bank will require a utility bill with your name on it, which could be a deal-breaker. Source: I am an American who owns a Hong Kong company which was denied by Braintree (at that time we were doing 30k MRR).
- falsestprophet 11y ago
  Thanks, good to know. What are the options for banking and card processing for a HK company? Why did you choose HK?
  - 55555 11y ago
    When I started my HK company I had been living in Asia for several years already and it just made more sense due to the lower effective taxation. Card processing: Braintree, 2Checkout, and then some lower tier options like PaymentWall. I'm not including old-school/direct merchant accounts here. Keep in mind that 4%*$0.45+1.5% is totally standard, with that final 1.5% added for non-HK billings. So you will pay 2% more to charge a card in HK compared to US. But your tax rate can be literally zero percent. A better option may be a US subsidiary or a US company wholly owned by a foreign entity. This is something I am considering, because... > banking Absolutely everything is a pain. After four years I still don't have a business charge/debit card. Applications for card processing and debit cards each take dozens of forms and generally longer than a month. Having said that, I have saved lots and lots of money. Lastly, a HK company costs about $1,000 to setup and $2,300 yearly to maintain.
kyriakos 11y ago
Braintree is also available in Cyprus (corporate tax 12.5 %)

55555 11y ago

I would think that to be approved for Stripe or Braintree in anything close to a haven, Singapore included, the underwriting bank will require a utility bill with your name on it, which could be a deal-breaker. Source: I am an American who owns a Hong Kong company which was denied by Braintree (at that time we were doing 30k MRR).

falsestprophet 11y ago
Thanks, good to know. What are the options for banking and card processing for a HK company? Why did you choose HK?
- 55555 11y ago
  When I started my HK company I had been living in Asia for several years already and it just made more sense due to the lower effective taxation. Card processing: Braintree, 2Checkout, and then some lower tier options like PaymentWall. I'm not including old-school/direct merchant accounts here. Keep in mind that 4%*$0.45+1.5% is totally standard, with that final 1.5% added for non-HK billings. So you will pay 2% more to charge a card in HK compared to US. But your tax rate can be literally zero percent. A better option may be a US subsidiary or a US company wholly owned by a foreign entity. This is something I am considering, because... > banking Absolutely everything is a pain. After four years I still don't have a business charge/debit card. Applications for card processing and debit cards each take dozens of forms and generally longer than a month. Having said that, I have saved lots and lots of money. Lastly, a HK company costs about $1,000 to setup and $2,300 yearly to maintain.

kyriakos 11y ago

Braintree is also available in Cyprus (corporate tax 12.5 %)