Bvi Company that opens UK Company

[Risehigh]

Would it make sense if you are transparent that you own the bvi as a European citizen, which does found and own 100% a llc in UK.

Would this make sense considering that any of the companies would rent a workspace/flat in the EU?

Should the BVI be a trust or normal llc?

 

[Sols]

It'll make finding banking a more challenging. A structure like this is usually judged based on the least reputable part of the chain, which would be BVI.

It also adds some tax complications down the line, depending on where the company is controlled and managed from.

What are you trying to achieve by having a BVI parent for your UK company?

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This is the probably the answer to your question.

 

[Risehigh]

The bvi will hold license for logo and get monthly payments based on that, aswell the bvi is used for trade buy products with crypto and sell to daughter company. UK company pays a high % of the revenue generated of the product to the bvi company as purchase price for the product.
UK company is just for payments, PayPal, and marketplaces. The bvi acts as international crypto friendly safety point for the trading actions which are international and don't need a bank account (atleast for purchasing goods) needs one to get money from UK.
Trading in regards to physical good, which are shipped from all over Europe and UK from partners the check the products and forward them.
Main business audience is Europe + US

 

[Risehigh]

What would tax authorities generally say about owning the bvi and UK company?
Is it easy for the UK company to rent spcae in Europe for work?

 

[Risehigh]

It would be controlled and managed in UK, Europe and other maybe some parts surely in bvi- mostly financial parts like cost planning, currency cals and crypto trading/holding. (planning to do actions there, Crytpo defi staking which is pretty friendly there I heard aswell)

 

[Risehigh]

Example : I would own 100 % of the BVI company, this does 100% own the UK company. The UK company should have local director right? And maybe a office space in the Netherlands (what I mentioned at the start) Company structure is planned as wealth creating (trade) and wealth creating (holdings, ip, crypto) not planning to cash out dividens to European home country, would this work or is this super fishy?

 

[Risehigh]

And is Seychelles or bvi better for my purpose? Not sure about that tbh

 

[Risehigh]

UK and Georgia main company would work aswell. (Guess it wouldnt raise that much flags like bvi)

 

[Dasboot]

Depends on a lot of variables:

Where do you live in Europe, and where do you plan to stay?

How old are you & would there be a natural way of explaining how you get by?

In general having a legit source of income that is declared & taxed is a HUGE plus. If you declare absolutely nothing then you might run into problems a few years down the line...

If you live in another country than where you're registered and normally taxed it might be a bit different - but either way you should have SOME tax bill paid to show when prodded.

 

[Risehigh]

Dasboot said:
Depends on a lot of variables:

Where do you live in Europe, and where do you plan to stay?

How old are you & would there be a natural way of explaining how you get by?

In general having a legit source of income that is declared & taxed is a HUGE plus. If you declare absolutely nothing then you might run into problems a few years down the line...

If you live in another country than where you're registered and normally taxed it might be a bit different - but either way you should have SOME tax bill paid to show when prodded.
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Yeah not trying to hide it and have normal income and other business to show 🙂 this should just be a legit way to optimize for international trade tbh. Would spend most of the time in an other nation that I taxed/resident.

 

[Risehigh]

So this setup could work? Also might swap ownership to a local eu holding of mine (would that make sense aswell?)

 

[Risehigh]

What might help in this structure : existing 2 year old brand/shop will be included into the system - guess the UK will operate it (Trust via Social Media & more) - existing normal, running business, which adopts internationally and a small change in products but the same theme/Niche 🙂

 

[Risehigh]

Would also transfer ownership of plattform & brand to bvi company and license it out to UK company.
BTW : Looking to be very open about owning the bvi.
Any help appreciated 🙂

 

[fshore]

Why does the UK company have to be owned by the bvi company? Would be easier to own both separately.
Still you have to prepare transfer pricing documentation for the transactions between the two companies, unless the bvi company is tax resident in Europe.

 

[Risehigh]

fshore said:
Why does the UK company have to be owned by the bvi company? Would be easier to own both separately.
Still you have to prepare transfer pricing documentation for the transactions between the two companies, unless the bvi company is tax resident in Europe.
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OH thought it might be easier and the cooperation better explainable. Bvi would be no tax resident as far as I thought for now. Sure the UK company needs to document purchases and sales. But the bvi does not have to

 

[fshore]

You should read up on transfer pricing documentation requirements.
It can be quite complicated.

 

[Risehigh]

fshore said:
You should read up on transfer pricing documentation requirements.
It can be quite complicated.
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Will surely do thank you very much 🙂 also considering to change the bvi part to cayman or marshal maybe that will help the problem even a little but, what would you advise as structure 🙂?

 

[Sols]

Risehigh said:
What would tax authorities generally say about owning the bvi and UK company?
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That is in and of itself not a problem.

Risehigh said:
Is it easy for the UK company to rent spcae in Europe for work?
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It depends on the landlord. If you use someone like Regus or other serviced office provider, it might be fine. Others might not want to sign with a foreign company.

Risehigh said:
It would be controlled and managed in UK, Europe and other maybe some parts surely in bvi- mostly financial parts like cost planning, currency cals and crypto trading/holding. (planning to do actions there, Crytpo defi staking which is pretty friendly there I heard aswell)
Click to expand...

So you will have a team in BVI?

Risehigh said:
Example : I would own 100 % of the BVI company, this does 100% own the UK company. The UK company should have local director right? And maybe a office space in the Netherlands (what I mentioned at the start) Company structure is planned as wealth creating (trade) and wealth creating (holdings, ip, crypto) not planning to cash out dividens to European home country, would this work or is this super fishy?
Click to expand...

This is so complicated. You have three jurisdictions involved and potentially double tax residence (UK and NL).

Risehigh said:
And is Seychelles or bvi better for my purpose? Not sure about that tbh
Click to expand...

BVI is a bit more reputable than Seychelles.

Risehigh said:
UK and Georgia main company would work aswell. (Guess it wouldnt raise that much flags like bvi)
Click to expand...

Splitting hairs. I'd place BVI ahead of Georgia in reputability.

Risehigh said:
So this setup could work? Also might swap ownership to a local eu holding of mine (would that make sense aswell?)
Click to expand...

Speak with a tax adviser. This sounds complicated for no real good reason.

Risehigh said:
Would also transfer ownership of plattform & brand to bvi company and license it out to UK company.
BTW : Looking to be very open about owning the bvi.
Any help appreciated 🙂
Click to expand...

Speak with a tax adviser. This sounds complicated for no real good reason.

Risehigh said:
OH thought it might be easier and the cooperation better explainable. Bvi would be no tax resident as far as I thought for now. Sure the UK company needs to document purchases and sales. But the bvi does not have to
Click to expand...

BVI company must fulfill substance requirements in BVI but that doesn't necessarily mean it won't be tax resident wherever you live and control it from.

Risehigh said:
Will surely do thank you very much 🙂 also considering to change the bvi part to cayman or marshal maybe that will help the problem even a little but, what would you advise as structure 🙂?
Click to expand...

Transfer pricing in this case would depend more on UK or NL law than on BVI/Cayman/Marshallese law.

And I'll repeat for a third time: Speak with a tax adviser. This sounds complicated for no real good reason. You're throwing around companies and jurisdiction like you're Google or Amazon. Most likely, the best, easiest, cheapest, and lowest-tax option you have is to just start a local company and not bother with anything overseas/offshore.

Toggle signature
This is the probably the answer to your question.

 

[Risehigh]

Sols said:
That is in and of itself not a problem.


It depends on the landlord. If you use someone like Regus or other serviced office provider, it might be fine. Others might not want to sign with a foreign company.


So you will have a team in BVI?


This is so complicated. You have three jurisdictions involved and potentially double tax residence (UK and NL).


BVI is a bit more reputable than Seychelles.


Splitting hairs. I'd place BVI ahead of Georgia in reputability.


Speak with a tax adviser. This sounds complicated for no real good reason.


Speak with a tax adviser. This sounds complicated for no real good reason.


BVI company must fulfill substance requirements in BVI but that doesn't necessarily mean it won't be tax resident wherever you live and control it from.


Transfer pricing in this case would depend more on UK or NL law than on BVI/Cayman/Marshallese law.

And I'll repeat for a third time: Speak with a tax adviser. This sounds complicated for no real good reason. You're throwing around companies and jurisdiction like you're Google or Amazon. Most likely, the best, easiest, cheapest, and lowest-tax option you have is to just start a local company and not bother with anything overseas/offshore.
Click to expand...

Thank you very much for all the answers. Yeah that's what I thought might be a bit to complicated. Was looking for a crypto friendly no book keeping way (bvi) go include since I use this for the purchases from the origins in crypto which is hard to declare in eu if you get no invoices for that--so that's a huge point I guess.

 

[Risehigh]

New Idea to make it more simple and clear out the place it is managed.
Say Netherlands company (which rents apartment as office and business is managed from there, I would be there + other European country depending on the business needs) and the bvi company and Netherlands company merge together for different purposes would this make sense 🙂?
(I know the IP Netherlands good old times are gone - not looking for that)
I guess this way clears out where it is managed from but since it's a merge is there a way to make it taxed in the bvi or would it be 100% taxes then on the Netherlands space.