Incorporation in Overseas Jurisdiction

[AllenMiller]

Hey,

Just exploring the idea of basing my small company in an overseas low tax jurisdiction. I'm a UK resident, the business sells paper based gifts pretty much globally, many of the items never set foot in the UK and are distributed from Netherlands, Canada, USA etc. Curious to know if anyone has experience in this area and whether it's possible to make savings by taking these steps?

Thanks

 

[The Byre]

A low-tax EU-based location suggests itself. There are several.

 

[AllenMiller]

A low-tax EU-based location suggests itself. There are several.

Thanks. I'm not so concerned about which location to chose, I'm more looking for information about whether the circumstances of the business entitle me to set up in a tax haven that doesn't get me a court date with HMRC

 

[Mr D]

Can base it where you want.

It will pay taxes on its profits as per relevant requirements. And of course you will meet requirements regarding it being based there. I hear some places require you to have board meetings in that country.

However you don't benefit unless you get money from the company. Which if you are UK based would be personal taxation to deal with.

 

[Rawlinson Pryde]

You need to read up on CFC rules

https://www.gov.uk/guidance/controlled-foreign-company-an-overview