Kristian

A lot of you guys n girls have registered companies. Can you recommend a good place to go online? Also, with me being British but living in Malta, does it matter where I register?

jalami

Depends on what you need really. UK corporations are real easy to set up, and are one of the best juridictions if you need an EU zone corp for merchant processing, but don't really offer much tax advantage or privacy. If you're looking for simple banking and asset protection there are a wealth of juridictions to pick from.

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Webby

You formally non-UK resident Kristian? In which case, depending what the purpose of the corp is - Gibraltar and possibly Cyprus may be a good location.

If you just want a UK company online - check out Jordans...
http://www.jordans.co.uk.

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Webby

And *definately* matters where you register if you are genuinely out of UK residency - just don't register in the UK!!!

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Kristian

Still a UK resident, Webby (for now, anyway).

It's for a mainstream film production company. Aside from banking, the main purpose is just to have the movies associated with a particular brand (ie Lucas Film LTD).

Kristian

So if I register a UK LTD and then become a Maltese resident, this might cause problems?

What do you recommend?

V_RocKs

Doing a DBA.... This is an online only and some faxing process...

http://www.legalzoom.com/

ztik

DBA is not a real company and won't protect you from anything (as far as I know)

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Webby

OK.. Getting ya! No, not so much that angle... Consider if you will end up non-resident in the UK in the future. If you spend most of your time in eg Malta you will not be required to file any tax returns in the UK.

Depending where you may end up spending most time, there can be enormous tax advantages - or no tax. For example... there is a lowish tax rate in Malta. If you spent most of your time there and were "released" from UK taxation, there is a case of having your business corp base in another low or no tax area and only pulling whatever funds you need into Malta.

If on the other hand you were spending most of your time in Malta or anywhere else, and still had an operational business in the UK, you are liable to normal UK citizen tax liabilites on this.

Soooo.. basically better to consider where you want to live and if that is outside the UK, avoid commercial dealings or companies there.

BTW.. Just to clarify... non-residency in the UK is not related to citizenship. You will still remain a UK citizen, but resident elsewhere. And.... that residency need not be formal as far as UK taxation is concerned - you can live where you like or country-hop around the globe - as long as there is no "earnings" from UK activities. It also does not inhibit you from spending some time in the UK each year - there is a scale for this and as long as you don't exceed the time period, you are not subject to taxation in the UK.

OK.. Got that bit?

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Webby

True ztik... just a name and means little. As far as the UK is concerned (and most EU countries) - you can call yourself anthing you like and there are no forms to complete.

PS Tho maybe not a good idea to name your trading style Microsoft

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Webby

Ah.. also... It is fairly common in that field to have a corp based in a low or zero taxation area and have... eg.. LucasFilm S.A. blah (tho avoid that one! )

The reasons are sound in that projects like movies are examples where five years can be spent on planning/scripting etc - then in one year the final product is released and earns money, and the earnings within that tax year are going to be estimated and grabbed at a higher rate. In a way this is unfair, since you spent five years not earning, then the profits are "confiscated".

Sooo.. again, better to give some thought to establishing your production company in a zero taxation area. Panama is a typical example for this type of business.

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Kristian

You ASTOUND me with your knowledge dude! And, for once on gfy, I actually mean that! lol I THINK I understand. We've moved here permanently now and I own no businesses outside Malta. In fact, I don't really own a business in Malta. I just work online for time being. I know for personal income tax malta has an upper band of only 35% (not sure of corp tax here).

I think I'd be happy registering a LTD here. Do you think that would be ok? Reg here and setup a business account with say HSBC or the bank of Valetta. I'm still eligible to pay UK income tax because we're still technically temporary residents. You can be a temp res in Malta for 50 years if you want. The advantage however of becoming permanent is the 35% tax. So even if I'm a temp resident in Malta, and still paying UK income tax, it'd be ok for me to reg a corp in Malta?

Sorry for all the questions!

Kristian

Hmmm thinking about it...I know temp residents arent able to run businesses here in Malta. I'm allowed to work online because it doesnt take jobs away from the Maltese. Maybe the best thing is to become a permanent resident and THEN reg a corp?

DateDoc

Well said! Your company will be taxed where it is registered so register it in a location with little to no tax liabilities.

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Kristian

BTW ... Thanks a lot to everyone for all the good info posted in this thread. This is the reason I still post on gfy. The endless deluge of dickheads is made tolerable by the business professionals.

Webby

Ah! If you have moved permanently to Malta, in effect you are non-resident in the UK? Just wondering why you are eligible to pay UK taxation when you don't live in the UK?? (Is there some kinda deal between Malta and the UK which forces you to do this?)

The fact that there may be a temporary residency in Malta does not matter from the UK angle. Tho, sure, it is relevant to pay up all/any UK taxation owing and let them know you just escaped the grubby hands of the IR

Give you an example.... Joe wants to live elsewhere - could be a Caribbean Island, Panama or Costa Rica. He's a UK citizen. All Joe needs to do is drop a letter into the IR along with any taxation he may owe them and say he's just left - and fly off into the sunset. From that moment, he had no obligations to UK tax people, tho he needs to comply with not living/visiting in the UK more than X months/year (gets higher the longer you have been outside the UK).

The fact that Joe may not be a permanet resident of a Caribbean island does not matter to the UK - it's none of their biz once you leave. (And several Caribbean islands will provide long stay deals even without formal residency).

Now... Joe want to enter into a high/no annual income scenario - eg.. make some movies. The place Joe elected to base his movie biz does not have to have any relationship with where he actually resides - or where he banks.

As as aside, there is a "formula" for this, consisting of three parts (a) business jurisdiction (b) banking jurisdiction and (c) playground. The biz jurisdiction is selected on the basis of most benefit - this could be for no taxation or other reasons - it is also where the legal entity is based. The banking juridisdiction (and could be more than one) is normally not in the same area as the corp entity, but there could be an account in the biz jurisdication area. The playground is where you actually live in reality - preferably under a palm tree with a few beers nearby ;-)

OK.. To continue... Joe elects to base his corp in Panama, bank in.. anywhere... and live on a Caribbean island. So, there is no taxation on the Caribbean island unless the funds were generated there. Joe runs his biz from that island and using the Panama-based corp. In turn, his Pamama corp gives him a salary which he pays into the local bank on the island tax free. The Panama corp does not pay taxes because there are no applicable taxes in Panama.

One think worth noting... there is no point in Joe's scenario where he is liable to file taxation in the UK from the day he left.

Just trying to work out some stuff you mentioned Kristian - the fact that Malta has 35% taxation suggests that is not a healthy option and it may be worth having a corp in a more profitable place where there is no taxation (especially if it has to do with movie production/authoring/royalties) and then drawing funds as you need them from your corp and into Malta and paying tax on that element only on a personal basis. In effect, Malta is your playground. This make sense?

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Kristian

Does it make sense? Does it ever! I was never very good at this but I think I get it now. I think this is how it would work in my case, once becoming a Maltese resident (because as long as Im temporary, I'm sure I have to pay UK tax and Maltese, but one writes off the other ... need to speak to a local accountant!). I become a permanent Maltese resident. I setup Kristian'sMovies LTD in Panama. We make movies and make a shitload of casholla. Malta only charges income tax on money that is changed into Maltese Lira in Malta. So I basically would only be taxed on what I spent during the year and it would probably be a low %. I THINK thats it!

Really thanks a lot Webby. You always go out of your way to give in-depth advice.

Webby

Hehe - ya got it

I'd seriously check out a local accountant and get advice on your local tax implications - and possibly contact your accountant in the UK if you still have one handy. Suspect either or both of them will come up with comment about not being liable for taxation in the UK (tho this depends on whether you still have property there or possibly renting it out - and where the rental would be subject to UK taxation, but none of your "foreign earnings" will).

This really involves taking 10 steps backwards and looking in on possible scenarios - then usually involves working from the back to front and forming your corp structure. But.... the benefits are awesome and worth every moment doing it

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