Why does this improve access? if the shareholder of the UK company is in Dubai, don't UK/EU EMIs still treat you as high risk like a Dubai applicant?
The treaty non-resident UK Ltd. - the best-kept offshore secret?
- Thread starter JustAnotherNomad
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Because you are presenting yourself through a UK LTD and not a FZE?
EMIs will refuse straight away to work with you if you ask to open an account for a FZE
Maybe some could refuse the opening if the LTD director isn't UK resident but at least you have choices.
EMIs will refuse straight away to work with you if you ask to open an account for a FZE
Maybe some could refuse the opening if the LTD director isn't UK resident but at least you have choices.
@Marzio thank you but doesn't the EMI ask for full ownership details all the way to UBO which would include the UAE entity if this is a UK company which has UAE domicile for tax purposes due to location of ownership/management control?
If so I would have assumed it isn't different from direct FZCO EMI application but if you or anyone has experience otherwise it would be very interesting to hear!
If so I would have assumed it isn't different from direct FZCO EMI application but if you or anyone has experience otherwise it would be very interesting to hear!
Yes but the tax residence wasn't the question. EMIs do care about ultimate beneficial owners. If they deny applications from UAE, would they not also deny applications from UK company with UAE parent?
I wondering what kind certificate HMRC would like to see? is it would be enough to provide personal Cyprus tax residency certificate or should it be explicitly granted to the UK company?
It seems should be easy to get personal certificate for CY resident but Im not sure how hard it would︀ be if it require for a company
It seems should be easy to get personal certificate for CY resident but Im not sure how hard it would︀ be if it require for a company
In this way, how one could ensure the control of the fund in the company. For example, to have a big chunk of fund sitting in the broker investing bond, stock etc. Wouldn't there be a chance that the nominees move the fund out of the company?
Why if you build some substance, get utility bill you are all good to go. Had zero troubles with my setups for the last 3 - 4 years. They are similar to what @myhand set up, one of the setups filed dormant for the 7th year even it is doing around 850K euro profits every year. You need to know what you are doing.
So in a nutshell, the︅ UK is a pretty useful place for LLCs when it comes to people's tax structures︆ due to the tax treaties they have set up with different countries and territories. And︇ if you want to move money to those places, using a UK LLC is a︈ pretty useful tool, right?
I have just seen this thread and although its many months past, I feel that I should add some expertise on this matter.
Having been a UAE resident for now approaching 29 years, I am also a director of a UK Ltd company.
Whilst I cannot comment on the benefits and 'ins and outs' of the tax status etc, I can however comment on the difficulties i.e. problems with UK banks whilst being resident in a country that 'they don't like'!
My Accountant (from UK) has often said 'They don't like you' and this has finally culminated this year with them closing our account ............︀ no reasons given as always, and now we are going through the long process (already︁ 5 months) of returning our funds that these a-r-s-e-h-o-l-e-s seized/blocked, whatever description you care to︂ use.
My company has been 'in limbo' now for many, many months without funds i.e.︃ cashflow, or an operating account! and of course they continue to play with our money︄ and earn interest on it at what is now a very good market rate.
So if there is any advice to give on this whole subject, do NOT under any︅ circumstances whatsoever, trust UK Banks as they are all liars, thieves and completely and absolutely︆ untrustworthy.
Having been a UAE resident for now approaching 29 years, I am also a director of a UK Ltd company.
Whilst I cannot comment on the benefits and 'ins and outs' of the tax status etc, I can however comment on the difficulties i.e. problems with UK banks whilst being resident in a country that 'they don't like'!
My Accountant (from UK) has often said 'They don't like you' and this has finally culminated this year with them closing our account ............︀ no reasons given as always, and now we are going through the long process (already︁ 5 months) of returning our funds that these a-r-s-e-h-o-l-e-s seized/blocked, whatever description you care to︂ use.
My company has been 'in limbo' now for many, many months without funds i.e.︃ cashflow, or an operating account! and of course they continue to play with our money︄ and earn interest on it at what is now a very good market rate.
So if there is any advice to give on this whole subject, do NOT under any︅ circumstances whatsoever, trust UK Banks as they are all liars, thieves and completely and absolutely︆ untrustworthy.
You are going totally off topic @Lord Palmerstone - sorry to hear your story but you should open a new thread!
It's not possible to setup a UK LTD nonresident, what you can do is to use some of the shady setups used today (which also are discussed inside mentor group gold) and which you can setup for about a year or two and trash it after this period. Rinse and Repeat every year.
It's not possible to setup a UK LTD nonresident, what you can do is to use some of the shady setups used today (which also are discussed inside mentor group gold) and which you can setup for about a year or two and trash it after this period. Rinse and Repeat every year.
He is not off topic, let me explain you why.
In order to be non resident, you could choose a UAE or HK director (Article 5 (permanent establisjment) & 7 of Double tax treaty with UAE and HK) so that your︀ UK company should pay Corporate income tax in UAE (9%) or HK (up to 15%)︁ rather than UK. I prefer HK to UAE because HK law is based on UK︂ law because of common history.
But then, you must open a business bank account for︃ your UK company. You could open a Wise business bank account but then, don't forget︄ your director isn't a resident of UK or EU. It is a resident of UAE︅ or HK. We may wonder, what could happen in this case?
If you can have︆ a non resident UK company but can't open a bank account it is nearly useless.︇
About VAT:
I don't know if you can apply for VAT in the UK without︈ a UTR. The Unique Tax Reference is provided by HMRC when you register for Corporation︉ tax.
According to UK for, the UTR is optional when you register for VAT:
https://www.gov.uk/register-for-vat/how-register-for-vatIdea behind: UK company - enrolled for corporation tax in HK - VAT in UK︊
About non resident UK company:
When you incorporate a company in the UK, you don't︋ need to enroll for corporation tax in the UK right away.
Open a wise business︌ bank account online:
Some pakistani guys did tutorial on youtube you show to open a︍ wise business account for a UK company. I guess this implied that the director was︎ pakistani.
So, in this case, these pakistani guys should pay corporation tax in Pakistan not️ in the UK because they have no permanent establishment in the UK (Article 5 of any Double tax treaty).
In order to be non resident, you could choose a UAE or HK director (Article 5 (permanent establisjment) & 7 of Double tax treaty with UAE and HK) so that your︀ UK company should pay Corporate income tax in UAE (9%) or HK (up to 15%)︁ rather than UK. I prefer HK to UAE because HK law is based on UK︂ law because of common history.
But then, you must open a business bank account for︃ your UK company. You could open a Wise business bank account but then, don't forget︄ your director isn't a resident of UK or EU. It is a resident of UAE︅ or HK. We may wonder, what could happen in this case?
If you can have︆ a non resident UK company but can't open a bank account it is nearly useless.︇
About VAT:
I don't know if you can apply for VAT in the UK without︈ a UTR. The Unique Tax Reference is provided by HMRC when you register for Corporation︉ tax.
According to UK for, the UTR is optional when you register for VAT:
https://www.gov.uk/register-for-vat/how-register-for-vatIdea behind: UK company - enrolled for corporation tax in HK - VAT in UK︊
About non resident UK company:
When you incorporate a company in the UK, you don't︋ need to enroll for corporation tax in the UK right away.
Open a wise business︌ bank account online:
Some pakistani guys did tutorial on youtube you show to open a︍ wise business account for a UK company. I guess this implied that the director was︎ pakistani.
So, in this case, these pakistani guys should pay corporation tax in Pakistan not️ in the UK because they have no permanent establishment in the UK (Article 5 of any Double tax treaty).
Gents, don't focus on local laws, The laws/rules of double taxation agreements take precedence over the local laws of both countries.
Here is the article 5 of the Double tax agreement between UK and Hong Kong:
https://assets.publishing.service.g...0b62302692963/hong-kong-uk-dta_-_in_force.pdf
ARTICLE 5 Permanent Establishment
1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially:
(a) a place of management; => Director's fiscal residency.
(b) a branch; ==> see an office
(c) an office; ==> Dependent employees of the company. Not independent contracting secretary company
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or︀ any other place of extraction of natural resources.
3. A building site, a construction, assembly︁ or installation project or supervisory activities in connection therewith, constitute a permanent establishment only if︂ such site, project or activities last more than six months.
4. The term “permanent establishment”︃ also encompasses the furnishing of services (including consultancy services) by an enterprise, directly or through︄ employees or other personnel engaged by the enterprise for such purpose, in connection with a︅ site, a project or supervisory activities referred to in paragraph 3, if those services continue︆ within a Contracting Party in connection with such site, project or activities for a period︇ or periods aggregating more than 183 days within any twelve-month period.
5. Notwithstanding the preceding︈ provisions of this Article, the term “permanent establishment” shall be deemed not to include: (a)︉ the use of facilities solely for the purpose of storage, display or delivery of goods︊ or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or︋ merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)︌ the maintenance of a stock of goods or merchandise belonging to the enterprise solely for︍ the purpose of processing by another enterprise; (d) the maintenance of a fixed place of︎ business solely for the purpose of purchasing goods or merchandise or of collecting information, for️ the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
==> Example: Web servers, cloud servers.
Then article 7:
. The profits of an enterprise of a Contracting Party shall be taxable only inthat Party unless the enterprise carries on business in︀ the other Contracting Partythrough a permanent establishment situated therein. If the enterprise carries onbusiness as︁ aforesaid, the profits of the enterprise may be taxed in the other Party,but only so︂ much of them as is attributable to that permanent establishment.
So, let's say, you incorporate︃ your company in the UK, your director is from Hong Kong, your web server are︄ located in Germany or Netherlands. So, i guess the company would pay Corporate income tax︅ in Hong Kong because in the company house registry in the director's list there would︆ be the name of someone living in HK. Then, the correspondance address can be the︇ one of a virtual office. Anyways, if there aren't any employees in the UK, HMRC︈ will not come after you.
The real problems related to this setup is for me:︉
https://assets.publishing.service.g...0b62302692963/hong-kong-uk-dta_-_in_force.pdf
ARTICLE 5 Permanent Establishment
1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially:
(a) a place of management; => Director's fiscal residency.
(b) a branch; ==> see an office
(c) an office; ==> Dependent employees of the company. Not independent contracting secretary company
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or︀ any other place of extraction of natural resources.
3. A building site, a construction, assembly︁ or installation project or supervisory activities in connection therewith, constitute a permanent establishment only if︂ such site, project or activities last more than six months.
4. The term “permanent establishment”︃ also encompasses the furnishing of services (including consultancy services) by an enterprise, directly or through︄ employees or other personnel engaged by the enterprise for such purpose, in connection with a︅ site, a project or supervisory activities referred to in paragraph 3, if those services continue︆ within a Contracting Party in connection with such site, project or activities for a period︇ or periods aggregating more than 183 days within any twelve-month period.
5. Notwithstanding the preceding︈ provisions of this Article, the term “permanent establishment” shall be deemed not to include: (a)︉ the use of facilities solely for the purpose of storage, display or delivery of goods︊ or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or︋ merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)︌ the maintenance of a stock of goods or merchandise belonging to the enterprise solely for︍ the purpose of processing by another enterprise; (d) the maintenance of a fixed place of︎ business solely for the purpose of purchasing goods or merchandise or of collecting information, for️ the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
==> Example: Web servers, cloud servers.
Then article 7:
. The profits of an enterprise of a Contracting Party shall be taxable only inthat Party unless the enterprise carries on business in︀ the other Contracting Partythrough a permanent establishment situated therein. If the enterprise carries onbusiness as︁ aforesaid, the profits of the enterprise may be taxed in the other Party,but only so︂ much of them as is attributable to that permanent establishment.
So, let's say, you incorporate︃ your company in the UK, your director is from Hong Kong, your web server are︄ located in Germany or Netherlands. So, i guess the company would pay Corporate income tax︅ in Hong Kong because in the company house registry in the director's list there would︆ be the name of someone living in HK. Then, the correspondance address can be the︇ one of a virtual office. Anyways, if there aren't any employees in the UK, HMRC︈ will not come after you.
The real problems related to this setup is for me:︉
- Nominee directors in UAE and Hong Kong are much more expensive than UK nominee directors.︊ Also, they are more intrusive.
- Outside of the UK, outside of Cyprus, and other jurisdictions︋ like these ones it is difficult to find good, reliable nominee directors.
- If the HMRC︌ comes after you, they will ask you to prove that your company pays Company income︍ tax in the country of the director
- You must report your CIT in the currency︎ of the country where you pay the CIT. In our example: Hong Kong Dollar (=£0,10)️ or UAE dirhams (=0,079).
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