Traffic arbitrage

Arbitrage is an economic term that consists in reselling a product bought cheaper with a difference that is profitable for the seller, which becomes a profit. Traffic is website visitors.


Traffic arbitrage is buying traffic from one resource and redirecting it to another for a percentage of sales. With the help of this modern online business, the affiliate marketer attracts clients for affiliate marketing. It is also called affiliate marketing.


For example, a company pays $5 for each customer. You set up an ad for $50, 50 people go to the seller’s website, 20 of them make a purchase, the company pays $100. You earned $50 on traffic arbitrage.


The arbitrator, who is also an affiliate webmaster, comes up with various creatives, promotions, attractive offers, and not just buys and sells. It is necessary to conduct regular tests, look for new ways to attract visitors. Often this is done by an arbitration team: a techie and a creative.


With the development of online activities, the team will need to officially register the business. And here questions arise: where are the best conditions for opening a company, more opportunities for development and fewer risks?


Why is it more profitable abroad

An internet-based company needs to operate legally to attract customers. And not necessarily in your own country. Foreign jurisdictions offer arbitration teams the following benefits:

  • significant tax reduction, to 0%;
  • no currency control;
  • other simplifications of activities: simple financial statements, a closed register of owners, etc.


You don’t have to earn millions to justify registering a company abroad. Affiliate marketing, even in a small amount, involves a high share of costs in turnover: you really need to invest a lot of money in advertising in order to get traffic. And all of them will be included in the tax base. Significantly saving on taxes is even more important for a small company with a small turnover.


Compulsory currency control greatly complicates the processes and costs additional costs. An account in another state will greatly simplify the receipt of foreign exchange funds and secure their storage. There are favorable banking offers for deposits, interest on the balance, etc.


And if in Ukraine

Ok. We register, open accounts, pay taxes. Monthly income from traffic arbitrage can reach $50,000. Do you think the tax authorities will have no questions about such activities?


And if it still looks like pure income, and at the same time the company has no employees, the check will surely come. And then try to confirm the operations with a full package of documents.


Working through a company registered abroad, in addition to tax and currency benefits, will help to avoid frequent interaction with the tax office at high turnover.


So where to register a business?

Here we will consider the most popular country options for IT business development.


Most attractive country for affiliate marketing in terms of performance:

  • the ability to open a company remotely;
  • 100% business ownership;
  • 0% taxes;
  • no reporting;
  • no currency control;
  • when obtaining tax residency, information is not transferred to other countries;
  • owner registry is private.


Requirements: obtain and renew an investor visa every 3 years. To do this, you need to fly to the country.


Opportunities: obtaining a residence permit.


Difficulties: may arise with opening an account. High minimum payment. For small turnovers, you need to document the income.


Great Britain

Suitable for any online business:

  • world’s easiest registration;
  • simple bookkeeping for foreign operations;
  • 19% corporate tax, 20% income tax;
  • Information about the founders is public.


Requirements: at least one shareholder and at least one director, no residency requirements.


Features: all available to companies registered in a developed country.


Difficulties: a bank account can only be opened outside the country or in a payment system.


Read more about opening a company in the UK in our article….



Suitable for webmasters who dream of opening a traffic arbitrage company in Europe. Benefits:

  • affordable registration cost and ease of procedure;
  • 12.5% ​​income tax (quite low by European standards);
  • no currency control;
  • government benefits;
  • no double taxation with Ukraine.


Requirements: Must spend some time in the country. The director and secretary must be Cypriots, otherwise the company will be non-resident.


Features: Reliable European business, ideal for working with foreign affiliate programs.


Difficulties: reporting as an audit. Biased attitude, like offshore.



Country with the following weights:

  • affordable registration and maintenance costs in the future;
  • 0% income tax, 20% on dividends (on withdrawal);
  • clear and clear regulation of relations.


Requirements: fair business, accounting.


Opportunities: optimal for generating income from foreign affiliate programs. You can apply for a residence permit.


Difficulties: open registries. You can open an account for traffic arbitration if you have an office and employees.


Tips for affiliates from Lawrange

Lawrange is familiar with these business models and offers company registration services in 18 additional countries in addition to those listed. This will give customers more options to choose from.


We offer clients:

  • optimal choice of jurisdiction depending on the initial data of the business model;
  • comprehensive legal and accounting services;
  • 24/7 Support;
  • complete anonymity and data privacy.


More than 10 years of experience in opening and servicing companies abroad.


The cost of registering a company abroad

The price depends on the region, the specifics of opening a business and its cost, the conditions for processing the necessary documents, licenses. Most often, the price of the service includes:

  • registration or purchase of an existing company;
  • legal address lease;
  • Agent services;
  • appointment of director, secretary.


First year legal service available. Comprehensive assistance.


Prices can be found on the company’s website. Discounts available.



Which country to choose for registration depends on your desires and capabilities. You can study the issue on the Internet, refer to the advice of a colleague and start the procedure. However, not all recommendations will fit the initial data of your business. A lot of factors influence the choice of an option: turnover, number of transactions, actual income, source of traffic purchase, available payment methods in affiliate programs.


We recommend contacting the firm’s lawyersLawrange that works with international tax models. It is advisable to consult before starting the registration of a company in any of the countries.



What do I need to provide to register a business in the UAE?

You will need a copy of your passport, a power of attorney for our representative and 3 name options.

How long does it take to open a company in the UK?

Invoicing will take longer (from 5 working days).

Is it possible to open a company in the Baltic countries online?

Yes. A high-quality electronic service that allows you to work with the State Register remotely was developed by Estonia.



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