If you want to incorporate a company which entails registering an existing company as a limited company, you should know of the country which it will be registered in. When your intended profit margins are due to be very high, a large amount of tax has to be paid. Although the tax rate in the United Kingdom is often less than what is charged in other European countries (France are considering plans to charge a 75% tax rate on income which is more than £800,000) the tax bill which British companies have to pay is still considerable. Forming a company in the UK is not the only option because a company can be incorporated in another country.
Tax haven countries
There are many countries around the world which require companies to pay no tax whatsoever. Anguilla, Bahrain, the Cayman Islands, Cyprus and Dubai are some of the many countries which do not expect its citizens to pay any tax whatsoever. Although each country has their own laws in regards to planning permission, the total amount of money which is saved by not paying tax can be hundreds of thousands of pounds.
The advantages of UK offshore company incorporation
When choosing offshore company incorporation, a company can become tax-free. However, a company must follow what its original intentions were. Otherwise, it is not following the rules and regulations which were stipulated when it was first formed. An offshore company is only charged tax by the UK government for the income it makes in that country. Any profits that are made by an offshore company outside of the UK are not taxed at all. Other advantages of UK offshore company incorporation include reducing capital gains tax and no exchange controls. Complete privacy guaranteed because details about directors are not disclosed. An offshore company doesn’t have to hold meetings between shareholders and directors as well.
How to incorporate an offshore company
Assistance from an experienced business that has helped many people to incorporate a company is highly recommended. As each country has their own laws which apply to foreign workers when starting up an offshore company, you should check the credentials of those who you seek assistance from. As it can cost hundreds or thousands of pounds to incorporate an offshore company, a business must know what they are doing. Asking to view testimonials which have been made by the customers who they helped previously or recently will enable you to know whether their services should be chosen or not.
UK offshore company incorporation is very rewarding, especially as you get to keep all of the money which your company will make. However, the business that will help you during the incorporation process should be carefully selected. They must be very experienced and not a complete novice.