UK Ltd company with foreign director.

Discussion in 'International Business' started by OMGVape, Oct 15, 2020 at 2:20 PM.

  1. OMGVape

    OMGVape UKBF Regular Free Member

    483 62
    I am considering setting up a Ltd company, me as one director (UK) and the other director is Chinese and lives in China. We will be equal shareholders 50/50

    We would use a UK business bank account. Goods shipped from China and sold only in UK.

    We would both only draw dividends out of profits.

    Will there be any requirement to inform HMRC about the Chinese director drawing dividends transferred directly to China? or is there a preferred way to handle this sort of arrangement?

    Thx
     
    Posted: Oct 15, 2020 at 2:20 PM By: OMGVape Member since: Jan 21, 2018
    #1
  2. Ray272

    Ray272 UKBF Regular Free Member

    322 48
    I know a chap who did exactly that and the Chinese director tried to blow him up. True story. Be careful but best of luck.
     
    Posted: Oct 15, 2020 at 2:30 PM By: Ray272 Member since: Jul 5, 2017
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,467 3,484
    Dividends come from profit after tax. HMRC will not be interested if the company has paid the correct tax.

    Your co-director will need to deal with the Chinese tax authorities.
     
    Posted: Oct 15, 2020 at 4:00 PM By: Scalloway Member since: Jun 6, 2010
    #3