Developing a tailor-made solution for your young business can be very costly. High costs can seriously hurt you, especially if your business is new and young.
However, there is always a way out. You can lower the overall cost of software development and take advantage of benefits such as a significant focus on business, better flexibility, access to a variety of skills, and more.
You can keep costs down by hiring a dedicated development team. This can be one of the best ways to keep your software offshore web development costs down. This blog will support this statement on how hiring a sincere developer can lower your costs so you can invest elsewhere.
Offshore e-commerce business strategy
By following the tactics outlined below, you will create an offshore corporate structure that can be set up as a business in your territory.
What you want to achieve is a truly international business that exists and operates outside of your jurisdiction, i.e. in a country with different tax laws (in some countries this is called offshore financial center).
Major offshore business strategies include:
- “Uncontrolled” offshore company (hereinafter – IBC) and offshore bank account;
- offshore web hosting (using an offshore server);
- offshore merchant account with credit card acceptance online and directly, direct payments;
- offshore distribution of your goods or services.
The main advantages of registering offshore companies for online trading
Firstly, this is the lack of foreign exchange controls in offshore companies, which results in much less paperwork compared to countries where it is applicable.
This will be especially true if your product is not a physical product exported from Russia, but something electronic (IT development or online work) or manufactured, for example, in China.
Secondly, these are accounts that can be opened in countries where you have clients or customers.
It will be very difficult, or even impossible for a Russian legal entity (how, for example, to open an account in the USA without opening a branch here and a personal visit?).
With an offshore company registered in California and Delaware or Canada, it will be easy to open a foreign account remotely, unless you are, of course, wanted by Interpol and are not going to engage in, for example, filming pornographic products.
Thirdly, a huge advantage of working through your own offshore is the fact that this structure is extremely mobile and portable.
You can choose such conditions for registering an offshore, in which e-commerce can be carried out from anywhere in the world and does not require a physical presence in the country of registration of your business or not far from the location of the tax office. Can you imagine how many opportunities you have?
Fourthly, you will be legally protected by the legislation of another state from any encroachment on the part of law enforcement or criminal structures, which are often very fond of taking over successful companies, such as Euroset, Magnit or Rolf, if you understand what we mean.
Offshore companies, in simple terms, are companies that are registered in one country, and operate and make a profit in other countries.
Therefore, any international business is closely related to offshore application development. Of course, “the fish chooses where it is deeper,” and a person chooses where he has lower costs and taxes.
So, when creating an international business, businessmen began to register companies in those countries where the rate of taxation of profits tended to zero.
Therefore, very often the word companies have begun to be understood as companies that do not pay taxes in the country of their registration.
But overnight the Latvian banking system said no to such companies and closed their accounts. This wave was picked up by the global banking system, which also toughened other requirements. Therefore, today no account will be opened for companies that do not pay taxes.
Therefore, it makes no sense to register a company in a tax-free country (Belize, BVI, Panama, Seychelles, etc.).