Buying foreign property/company through UK limited company

[gwynge]

I'm looking at investing in a property in Indonesia. I would like to do this through my UK limited company (as I have cash in that and not in my personal accounts). Wondering what the rules are about this. To own the Indonesian property it's already going to be a requirement to have an Indo company (PMA).

Can my company effectively own this foreign company (and provide its startup capital)? I appreciate that profits from the Indo company would then be subject to UK corporation tax but I'm planning putting the maximum (up to 40k pa) into my SIPP which would then likely mean the UK company doesn't make any profit.

The UK company has been trading over 20 years, in software development and business consultancy with 3 staff and 2 shareholders.

Any thoughts/knowledge in this area?

 

[Scalloway]

Can my company effectively own this foreign company (and provide its startup capital)?

A limited company has power to invest in other companies if it wishes. What are your plans for the Indonesian property?

 

[gwynge]

Thanks. The plan is holiday rental (think airbnb).

 

[gwynge]

A limited company has power to invest in other companies if it wishes. What are your plans for the Indonesian property?

Hi Scalloway - do you have any other thoughts or advice on this? In terms of being able to invest in foreign companies?

 

[Scalloway]

For the British company you should set it up with a small share capital and the majority of money invested as a loan. This means that money can be extracted earlier.

You need an Indonesian adviser for setting things up there.