Choosing the Best Country for Your E-Commerce Business: A Guide for Pakistani Founders & NRPs

For most founders, the UK wins on simplicity. Companies House registration takes under 24 hours and can be done entirely online for a minimal fee. The US is close behind – Wyoming LLCs in particular are quick, affordable, and low friction. Singapore and the UAE are more involved: Singapore requires a local director, and the UAE comes with higher upfront costs. If you just want to get up and running fast, the UK or a Wyoming LLC are your two best options.

It depends on which country you’ve formed in. For a US LLC, Mercury and Relay offer fully remote account opening – no US visit required. UK LTD holders can open accounts online through Wise, Tide, or Monzo without being a UK resident. UAE free zone companies are a different story – most banks there require an in-person visit and an intensive KYC process, which is the main practical limitation for Pakistan-based founders who can’t travel. Singapore also typically requires in-person verification unless you’re using a supported neobank like Aspire or Airwallex.

Two things drive that decision: your target market and your funding plans. If you want to raise venture capital or access US-based investors, go with a US Delaware C-Corp. If your customers are primarily in Europe and you’re not planning institutional fundraising, a UK LTD is simpler, cheaper, and works just as well for Stripe and payment gateway access. Not sure? The US LLC is the more flexible starting point.

Yes. Mercury and Relay both offer remote account opening for non-resident US LLC owners. You’ll need your LLC formation documents, EIN confirmation from the IRS, and standard identity verification. No US visit required at any point. That’s one of the main reasons the US LLC is the most common first entity for Pakistan-based e-commerce founders.

Depends which Amazon marketplace you’re selling on. If it’s Amazon US, a US LLC makes more operational sense – tax reporting, payment processing, and seller account structure all align better. Selling primarily on Amazon UK or Amazon EU? A UK LTD is the more natural fit. Plenty of founders with both markets end up holding both structures eventually.

Yes, you do. Registering a business in another country does not remove your obligations under Pakistani tax law. Pakistani residents are generally taxable on worldwide income. A US LLC or UK LTD changes your reporting structure – it doesn’t make your FBR obligations go away. Before you form anything foreign, speak with a qualified tax advisor who understands both Pakistani tax law and the laws of your chosen jurisdiction.

Yes. Both countries allow fully remote company formation for non-residents. There’s no citizenship or residency requirement, and no travel is needed at any point in the formation process. Banking can also be set up remotely in both jurisdictions through the platforms mentioned above.

Economic nexus is the legal principle that determines when a foreign-owned or out-of-state company must collect and remit sales tax in a particular US state. Once your sales into a specific state cross that state’s threshold – usually $100,000 in annual revenue or 200 transactions per year – you may be legally required to register for sales tax there. This applies to foreign-owned US LLCs. It becomes relevant as your US sales grow, so factor it into your compliance planning early rather than treating it as something you’ll deal with later.

A US LLC is a pass-through entity by default. The LLC itself doesn’t pay federal corporate income tax – profits pass through to the owner’s personal tax return. For a Pakistani founder who isn’t a US resident, this has specific implications under both US and Pakistani tax law that genuinely require professional advice. The short version: the LLC structure avoids the double-taxation issue that can come with a C-Corp, where tax hits once at the corporate level and again at the individual level. Your actual tax position will depend on your residency status, income structure, and any applicable tax treaties.