The Challenge
A UAE-based e-commerce operator selling physical goods to EU consumers was facing growing compliance complexity under the EU VAT OSS regime. EU customers were also increasingly reluctant to purchase from non-EU entities, and major payment processors were declining the business due to the absence of a European legal presence. The operator needed an EU-based entity with VAT registration and a European bank account as quickly as possible.
The Solution
Nexora formed a Cyprus private limited company on an expedited seven-day basis, simultaneously initiating VAT registration and VIES registration to enable B2B EU trading. The company was structured with a Cyprus-resident director to ensure genuine local management and control, satisfying the substance requirements for both tax and banking purposes. Nexora also introduced the client to a Cyprus-licensed payment institution suitable for e-commerce operations.
The Outcome
The Cyprus subsidiary was incorporated in seven working days. The EU VAT number was issued fourteen days after incorporation. The company passed payment processor KYC within three weeks of incorporation and began processing EU customer transactions within thirty days of the initial instruction to Nexora. EU revenues increased by 23% in the first six months following the establishment of the Cyprus entity.
“Speed and execution. That is what we needed. Nexora delivered both, and the advice on banking was exactly right. We were live and trading in under a month.”
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