Proform Offshore can supply a tax efficient structure which includes the incorporation of an offshore company and a UK company. Full services available including nominee directors, registered office and agent and all government fees.
Method
With the ever increasing vigilance of the tax authorities,
especially with the introduction of offshore blacklists,
it has, in recent years, become increasingly difficult
for companies incorporated in offshore jurisdictions
to trade with on-shore companies.
By using a UK registered company, which agrees to transact
business on behalf of an offshore company, a structure is
available which gives an on-shore profile yet allows the
benefits of offshore taxation.
The UK company is formed specifically to operate as a nominee
for the offshore company - in effect the UK company acts
as a fiduciary or agent for the offshore company. The two
companies sign an agreement which specifies the terms of
the agreement between them. All business is then conducted
in the name of the UK company, but on behalf of the offshore
company. The existence of the offshore company behind the
UK company need not be apparent to customers; as far as they
are concerned, all they will see is the UK company. The customer
enters into a contract with the UK company, is invoiced by
them and pay the invoices into the bank account of the UK
company. Income is then remitted to the offshore company
by the UK company after deduction of an agreed commission.
The UK company is managed and controlled by the offshore
company and its officers, as is the bank account of the UK
company.
It should be noted that the UK company cannot trade
within the UK or with any UK businesses. If it does then
this income would be subject to UK taxation.
Advantages
- Ideal
for use as a European trading structure where the receipt
of invoices from an offshore company would not be acceptable
- Excellent
for situations where an onshore profile is required
but where offshore tax treatment is desired
- If
linked to a discretionary trust this may prove a suitable
structure for long term income/inheritance tax planning
- Can
be used effectively in VAT triangulation situations
Taxation
/Accounts
The UK company pays UK Corporation Tax on its commission
although all allowable expenses incurred in carrying out
its business will be deducted first. The ultimate success
of this type of structure relies on the fact there is no
UK source income. This, in conjunction with the fact that
the company is being controlled and managed from outside
the UK, means that the UK Inland Revenue can only assess
the UK company for tax on the fees it earns by way of commission
for effecting the business of the offshore company. The payments
made to the offshore company by customers are therefore not
subject to UK taxes. Usually a commission of between 5% and
10% would be arranged which would mean that, on average,
the effective rate of tax would be around 1.2% on a total
turnover of £100,000 which would reduce on turnover above
this. Annual accounts must be filed which may need to be
audited. |
Company
Formation
We can incorporate a UK company with your choice of name
in approximately 7 days. Names must end in "Limited" and
must fall within certain restrictions. We would be happy
to check the availability of your chosen name via our on-line
link to the Companies House system and offer advice on name
choice. You may also check the register yourself at the Companies
House Website.
VAT
Registration
If the company's turnover exceeds UK£67,000 in a 12 month
period the company must register for VAT (Value Added Tax).
Proform Offshore can handle all VAT registration formalities,
and also complete and file all VAT returns to HM Revenue and Customs.
In the UK it can take a minimum of six weeks for HM Revenue and Excise to process VAT registrations. The procedures are complex and time consuming and may take significantly longer than six weeks if more information/evidence is required.
Administration Services
Proform Offshore can produce invoices and handle additional
administration if required.
SPECIAL
OFFERS
A UK Nominee company plus a Seychelles IBC for a total initial cost of UK£1800 (US$3600)
A UK Nominee company plus a British Virgin Island IBC for a total initial cost of UK£1950 (US$3900)
UK
Nominee Package Order Form
Total
first year's costs
includes incorporation, provision of nominee directors/company
secretary/shareholders, registered office, preparation
and execution of nominee company agreement, and all
government fees |
UK£925 US$1850 |
Annual
costs
includes provision of nominee nominee directors/company
secretary/shareholders, registered office, filing annual
returns/annual accounts (although not preparation/audit
of accounts which we can arrange) and all government
filing fees |
UK£635 US$1270 |
Nominee Director and shareholder (per year)
We would appoint a nominee to act on your behalf as a director and shareholder to ensure your anonymity. We appoint individuals not corporate nominees. This includes a non-apostilled Power of Attorney.
|
UK£295 US$590 |
Assistance
with opening bank account
Proform Offshore can assist with opening accounts with
a bank in Cyprus |
UK£250 US$500 |
| VAT
Registration
Completion and submission of VAT registration forms and liaising with the client and Customs and Excise as necessary |
UK£250 US$500 |
| VAT Administration (per year)
Completion and submission of quarterly VAT returns and EC Sales Lists if appropriate and liaising with the client and HM Revenue and Customs as necessary. |
UK£250 US$500 |
Keeping
accounts / book-keeping / administration
(per hour) |
UK£30 US$60 |
Apostilled Documents
Proform Offshore can arrange for a power of attorney and/or company documents to be issued, certified and apostilled - per document |
UK£130 US$260 |
Courier
Fees
we forward company documentation by express airmail
however if speed is paramount then a courier service
is available |
UK£50 US$100 |
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