Should i start up in the UK or Netherlands?

Discussion in 'First Steps To Starting A Business' started by ItsBusinessTime, Jun 9, 2019.

  1. ItsBusinessTime

    ItsBusinessTime UKBF Newcomer Free Member

    2 0
    Hello everyone, i would greatly appreciate some well needed advice.

    I have been working on a business plan on and of for a long time with the help of free startup programmes. I was just about to apply for finance and start my business when my girl friend got offered a job that she could not refuse in the Netherlands. We have now moved to Amsterdam with the aim of staying here a year or 2. We also have the option of moving country every year or 2 as the company she works for has locations all around the globe and have already expressed that they are looking for someone to head her department in Italy.

    This has thrown a spanner in the works as they say and left me really uncertain as what the best set up is for me at the moment.

    The advice i was given by the free startup advisor was just to start my business in the UK and run it from abroad especially seeing as i may not even be in the Netherlands full time but the more i look into this the harder it seems to be.

    I went to a tax advisor in Amsterdam. He advised that if i was to set up an LTD in the UK that in order to show both the UK and Dutch government that it is being run from the UK that i would have to make a few business trips a month and to keep air line receipts as proof that i am indeed running the company from the UK and not from Amsterdam. If i could not prove that the business was indeed being run from the country in which it is registered then the Dutch tax office would count my business as being Dutch operated and therefore i would have to register a dutch BV (LTD) and close down the UK business altogether.

    I went back home and spoke with the business advisor again and told him what i was told and he just shrugged and just said that he thought if you have a business in the UK you can run it from anywhere you want as long as you pay income tax to the country that you are currently living in but the corporation tax would still be paid to the UK.

    I am now at a total loss as what to do as I can not even get straight answers for what i thought was a fairly basic question.

    Ideally i would like to start and keep running a UK LTD for many reasons. First of all i speak the language, its cheap to start, i have credit history there, my business plan is in pounds and have the option of applying for a start up loan.

    In Amsterdam it costs a lot just to even open a BV, i am not sure if i can get access to capital, all legal documents are in dutch which i do not speak and the corporation tax is higher. Without startup capital i can not even start the business...

    I just want to know what my options are, does anyone have any experience in this?

    The business itself is a small group tour company offering small tours around Europe.

    Thank you very much for your help, it is really appreciated.
     
    Posted: Jun 9, 2019 By: ItsBusinessTime Member since: Jun 9, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    14,258 1,555
    Are you going to be trading in the EU - in which case Netherlands works - or outside the EU - in which case the UK works?
     
    Posted: Jun 9, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. ItsBusinessTime

    ItsBusinessTime UKBF Newcomer Free Member

    2 0
    I will be trading in both the EU and outside the EU after brexit as the tours will run around the UK, Europe and beyond.
     
    Posted: Jun 10, 2019 By: ItsBusinessTime Member since: Jun 9, 2019
    #3
  4. makeyourbusinessbetter

    makeyourbusinessbetter UKBF Regular Free Member

    132 32
    It sounds like you need to get advice on both company law and residency.

    Ideally, you want to have the maximum flexibility; to have a UK limited company for your tours and to be sure you are dealing with your personal tax affairs correctly in whatever country you are living in at the time. This year you are living in the Netherlands, next year it could be Italy, after that possibly somewhere else. You don't want to have to close one company and open another each time you move country.

    There are two incomes to consider;
    1. Company income - from the customers who buy your tours
    2. Personal income - the salary and dividends you receive from the company
    Both company law and residency rules are not simple or straightforward. Many advisors and accountants do not deal with this stuff every day. It would be worthwhile to find someone with the experience and expertise to give you the correct advice.

    Good luck.
     
    Posted: Jun 12, 2019 By: makeyourbusinessbetter Member since: May 14, 2013
    #4