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That is reasonable but then again forming a business elsewhere is one of my options but not at the moment as I have a budget constraint.

Yep, makes sense if you have a budget concern. That said, I don't like policies that restrict people from certain countries from starting a business, but you may run into this more and more. Hetzner is not the only company that does this - I've also heard of Stripe being picky for example.

My total cost to operate a LLC in the US is about $125/year and my business bank (Novo) is completely free, so it's not too expensive if you have some revenue coming in regularly.

THank you so much for the idea @ben will consider this as my alternative option.

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