Question re UK Corp for non EU resident - GoFuckYourself.com

ayj · 10-15-2003, 12:40 PM

I have set up a UK company to allow me to work with EU based CC processors. I understood that if you are a non-UK resident yourself it is possible to avoid going through the accounts / taxation circles with UK authorities (I have no problem declaring tax in my country of residence).

BUT I'm having trouble understanding how this works for the company - surely it is by definition a UK resident and must submit accounts.

otoh, once on is set up with the processor there is no reason for the UK company to do any business at all, but that is another whole story.

any insights / help most appreciated

ayj

Krome · 10-15-2003, 01:06 PM

With a UK company you have to submit accounts to companies house once per year or you get fines...you could just leave the company dormant and just pay the filing charge of £15 per annum.

ayj · 10-15-2003, 05:11 PM

Thanks for that Krome, I had heard that one could register in some way with the UK IRD that the company was not making earnings in UK and get exempt from presenting accounts. The 125 pounds is not a problem of course although I also heard that under certain non-trading situations the company could risk being deregistered.

thanks again, anyone else?

ayj

Webby · 10-15-2003, 05:27 PM

Hi ayj

If you are a non resident of the UK and you can say that all revenue from your company is not going to originate from the UK, you can have a disclaimer from the Inland Revenue as a non-resident company and you will not be required to go thru the UK tax system

In the instance of net earnings, I would not see this as being a problem with the Inland Revenue.

ayj · 10-15-2003, 07:09 PM

Hi Webby

I was hoping to catch your eye :-). It doesn't seem to me all that credible for a web based company to say *all* earnings are not from UK (other than in exceptional circumstances). Particularly if the company is involved with CC Bill EU (though in fact the company does not need to be the revenue vehicle for CC Bill).

ayj

Webby · 10-15-2003, 07:28 PM

Hi ayj!

Na.. you have no problems stating that you are a non-resident UK company. The Inland Revenue will give you a bit of paper confirming this and you will not be subject to UK tax stuff.

They are not interested in quibbling about the small about of clients you may have that come from the UK. The other issue is, your processor... say it was CCBillEU, I understand they are based in Cyprus and, again, this has nothing to do with the UK. Your company is actually being controlled.. from wherever you are *s* and does not, in effect, trade or have a presence within the UK.

I know of several who have the same setup and they have had no problems getting a disclaimer from the Inland Revenue for net activity.

Another side issue... tax is only payable in the UK on money earned by UK residents within the UK, or actually brought into the country for the benefit of residents. I assume you do not have a bank account for this company in the UK?? :-) If so, suggest you change that asap and just use any bank account in your own country for this company.

Also.. you need to get an accountant in the UK to have a chat and let him sort your Inland Revenue paperwork.

This any help?

qwe · 10-15-2003, 08:58 PM

hey webby can you please help me out on what exactly i need to get without paying for something I will not use, i got this reply from one company which incorporates:

"A company registered in Gibraltar will not be liable to Gibraltar taxation if it's owned and controlled by non residents of Gibraltar, does not trade in Gibraltar and does not remit income to Gibraltar. Hence, this is the basis for creation of a Gibraltar non-resident company. There are no capital gains taxes, gift taxes, wealth taxes nor VAT in Gibraltar.

The pricing for company registration is indicated in the application form. The minimum price that should be paid for company registration and all primary documents (Certificate of the Incorporation, Memorandum & Articles of Association, First minutes, Share certificates and Share transfer forms), as well as government fees at registration is GBP 290.
Almost 100% of customers order also Registered Address and Company Secretary for GBP 100 and courier (from GBP 45 up to 70) or airmail (GBP 15) delivery.
We would strongly recommend you to order Apostille on the Certificate of the Incorporation (GBP 35) or notarized copies of corporate documents with Apostille (GBP 70).

Other fees are completely optional (Corporate Nominee director - GBP 180, Corporate Nominee shareholder - GBP 220, Notarized Power of Attorney with Apostille - GBP 70, Corporate seal - GBP 25).
"

now what exactly do I need, which options ? and is it I pay once or this is pay per year situation ? thx

ayj · 10-16-2003, 01:49 PM

Hi Webby

Thanks again, as always superb helpful advice. No I don't have a bank account in the UK :-).

In practical reality this company does not trade at all.

My confusion (as a result of a conversation with IRD UK) was about the fact that although I live outside UK (and EU) the company (which I thought was the legal equivalent to an individual) has it's registered office in Bristol (Jordans) ie it does "live" in the UK.

I did not think the residence issue revolved around where the control for the company resides but around where the company itself resides. Then, if the company did earn money, even if outside the UK, because it is a UK resident, I thought the starting point would be that it's earnings were UK earnings.

Accountant eh - probably good advice but sounds expensive. I have quite a lot of knowledge in that area and usually find I can cover most of the ground myself but perhaps with this I do need some help.

Thanks again

ayj

qwe · 10-16-2003, 07:35 PM

webby u around to answer my question before ?

10-15-2003, 12:40 PM	#1
ayj Registered User Join Date: Jul 2003 Posts: 27	Question re UK Corp for non EU resident I have set up a UK company to allow me to work with EU based CC processors. I understood that if you are a non-UK resident yourself it is possible to avoid going through the accounts / taxation circles with UK authorities (I have no problem declaring tax in my country of residence). BUT I'm having trouble understanding how this works for the company - surely it is by definition a UK resident and must submit accounts. otoh, once on is set up with the processor there is no reason for the UK company to do any business at all, but that is another whole story. any insights / help most appreciated ayj

10-15-2003, 01:06 PM	#2
Krome Confirmed User Join Date: Jul 2001 Location: London - UK Posts: 2,851	With a UK company you have to submit accounts to companies house once per year or you get fines...you could just leave the company dormant and just pay the filing charge of £15 per annum.

10-15-2003, 05:11 PM	#3
ayj Registered User Join Date: Jul 2003 Posts: 27	Thanks for that Krome, I had heard that one could register in some way with the UK IRD that the company was not making earnings in UK and get exempt from presenting accounts. The 125 pounds is not a problem of course although I also heard that under certain non-trading situations the company could risk being deregistered. thanks again, anyone else? ayj

10-15-2003, 05:27 PM	#4
Webby Too lazy to set a custom title Join Date: Oct 2002 Location: Far far away - as possible Posts: 14,956	Hi ayj If you are a non resident of the UK and you can say that all revenue from your company is not going to originate from the UK, you can have a disclaimer from the Inland Revenue as a non-resident company and you will not be required to go thru the UK tax system In the instance of net earnings, I would not see this as being a problem with the Inland Revenue.

10-15-2003, 07:09 PM	#5
ayj Registered User Join Date: Jul 2003 Posts: 27	Hi Webby I was hoping to catch your eye :-). It doesn't seem to me all that credible for a web based company to say all earnings are not from UK (other than in exceptional circumstances). Particularly if the company is involved with CC Bill EU (though in fact the company does not need to be the revenue vehicle for CC Bill). ayj

10-15-2003, 07:28 PM	#6
Webby Too lazy to set a custom title Join Date: Oct 2002 Location: Far far away - as possible Posts: 14,956	Hi ayj! Na.. you have no problems stating that you are a non-resident UK company. The Inland Revenue will give you a bit of paper confirming this and you will not be subject to UK tax stuff. They are not interested in quibbling about the small about of clients you may have that come from the UK. The other issue is, your processor... say it was CCBillEU, I understand they are based in Cyprus and, again, this has nothing to do with the UK. Your company is actually being controlled.. from wherever you are s and does not, in effect, trade or have a presence within the UK. I know of several who have the same setup and they have had no problems getting a disclaimer from the Inland Revenue for net activity. Another side issue... tax is only payable in the UK on money earned by UK residents within the UK, or actually brought into the country for the benefit of residents. I assume you do not have a bank account for this company in the UK?? :-) If so, suggest you change that asap and just use any bank account in your own country for this company. Also.. you need to get an accountant in the UK to have a chat and let him sort your Inland Revenue paperwork. This any help?

10-15-2003, 08:58 PM	#7
qwe Confirmed User Join Date: Jul 2003 Posts: 2,109	hey webby can you please help me out on what exactly i need to get without paying for something I will not use, i got this reply from one company which incorporates: "A company registered in Gibraltar will not be liable to Gibraltar taxation if it's owned and controlled by non residents of Gibraltar, does not trade in Gibraltar and does not remit income to Gibraltar. Hence, this is the basis for creation of a Gibraltar non-resident company. There are no capital gains taxes, gift taxes, wealth taxes nor VAT in Gibraltar. The pricing for company registration is indicated in the application form. The minimum price that should be paid for company registration and all primary documents (Certificate of the Incorporation, Memorandum & Articles of Association, First minutes, Share certificates and Share transfer forms), as well as government fees at registration is GBP 290. Almost 100% of customers order also Registered Address and Company Secretary for GBP 100 and courier (from GBP 45 up to 70) or airmail (GBP 15) delivery. We would strongly recommend you to order Apostille on the Certificate of the Incorporation (GBP 35) or notarized copies of corporate documents with Apostille (GBP 70). Other fees are completely optional (Corporate Nominee director - GBP 180, Corporate Nominee shareholder - GBP 220, Notarized Power of Attorney with Apostille - GBP 70, Corporate seal - GBP 25). " now what exactly do I need, which options ? and is it I pay once or this is pay per year situation ? thx

10-16-2003, 01:49 PM	#8
ayj Registered User Join Date: Jul 2003 Posts: 27	Hi Webby Thanks again, as always superb helpful advice. No I don't have a bank account in the UK :-). In practical reality this company does not trade at all. My confusion (as a result of a conversation with IRD UK) was about the fact that although I live outside UK (and EU) the company (which I thought was the legal equivalent to an individual) has it's registered office in Bristol (Jordans) ie it does "live" in the UK. I did not think the residence issue revolved around where the control for the company resides but around where the company itself resides. Then, if the company did earn money, even if outside the UK, because it is a UK resident, I thought the starting point would be that it's earnings were UK earnings. Accountant eh - probably good advice but sounds expensive. I have quite a lot of knowledge in that area and usually find I can cover most of the ground myself but perhaps with this I do need some help. Thanks again ayj

10-16-2003, 07:35 PM	#9
qwe Confirmed User Join Date: Jul 2003 Posts: 2,109	webby u around to answer my question before ?