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Old 09-10-2012, 12:59 PM   #1
BlackSwan
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Default Open a startup (investment company) -- What is the best location?

Hi All,

Together with a friend we want to launch a small investment company. The company activity will be to invest in financial markets (mainly stocks and derivatives in US,UK,EU) with its own capital.

We are considering several options where to locate our small shop:
1. Delaware (US) because:
(i) there is no requirement for minimum capital;
(ii) should be no tax on capital gain;
(iii) costs are very low.

2. Switzerland because we are living here.

Do you have other suggestions or some experience with one of these two locations?
Or maybe you know a better place to start?
Somewhere like the Cayman Islands? (What are pros and cons of such a location?)

Can we still open the business in Delaware under all the benefits (i)-(iii) mentioned above IF:
  1. All the shareholders and directors (i.e. both of us) are non-US citizens and have no green-cards.
  2. Company activity will be investment in financial markets of its own capital with no physical presence in the US.
  3. What happens if we invest in US stocks which pay dividends? Would there be a withholding tax on them, would it be possible to claim it back?
  4. The blessing of Delaware is that there is no state tax but what about the federal tax?

Given all this what are your suggestions?

Thanks in advance for your comments.
Cheers,
Swan
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Old 09-10-2012, 02:18 PM   #2
AFFA
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Default Re: Open a startup (investment company) -- What is the best location?

I wish to inform you that a Delaware LLC is a favorable offshore structure for your start up investment company. The Delaware LLC pays no state or federal tax in the US. It does not file state or federal tax returns. The directors may not be from US. However, it must do no business in the US. The US is more favorable jurisdiction for incorporation of your business as compared to Switzerland or Cayman Islands.

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Old 09-11-2012, 04:23 AM   #3
BlackSwan
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Default Re: Open a startup (investment company) -- What is the best location?

Thanks AFFA.

What is the legal definition of doing business in the US?
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Old 09-11-2012, 06:52 AM   #4
Lexus
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Default Re: Open a startup (investment company) -- What is the best location?

First of all determine how your investment firm should be organized. In general, the investment business can have many liabilities, so selecting an organizational structure that protects your personal liability is important. These can usually include some form of incorporation, a Limited Liability Company or a Limited Liability Partnership. Please note that states differ both on liability protection and tax advantages, so you must review your options with both an attorney and an accountant.
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Old 11-15-2017, 01:08 AM   #5
niharikadutt
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Default Re: Open a startup (investment company) -- What is the best location?

Globalization has made the business world come closer. With FDI being liberalized in a unique way, India has opened doors for the world to come and do business in India. Companies from various countries come to India for business and seek registration for their representative companies or establishments here.
Steps for Company Formation in India:
Approval of Director’s Identification of all the directors.
Digital signature of one of the director of the company (DSC).
Form 1A for name approval is to be filed with Registrar of Companies (ROC)
After name approval, Memorandum and Articles of Association are drafted and other ROC forms are prepared & filed with ROC for getting the Certificate of the Registration.
Certificate of Incorporation is granted by Registrar of Companies
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Old 04-19-2018, 07:45 AM   #6
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Default Re: Open a startup (investment company) -- What is the best location?

Quote:
Originally Posted by BlackSwan View Post
Thanks AFFA.

What is the legal definition of doing business in the US?
These days the courts seem to rule that any business activity in the state, whatsoever, no matter how small is usually considered doing business in that state, and in the US.
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Old 04-21-2018, 05:48 AM   #7
RichardJose
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Default Re: Open a startup (investment company) -- What is the best location?

Yeah true. I agree!
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Old 08-10-2018, 03:39 AM   #8
Millermatthew
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Default Re: Open a startup (investment company) -- What is the best location?

One of the best locations for the startup is the Virtual office. You can only pay the rent of the office and work from anywhere in the world with the virtual address.
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