Multi-Company Structure advice

[Kaladin]

Hi all,

I'm wondering you can provide some advice on how best to structure my situation or advice on companies that can assist with helping reduce tax:

- UK resident and passport holder
- Company is currently a UK LTD company earning 150k GBP a month
- Revenue is genereted from in app sales worldwide - China / EU/ US are the biggest regions
- I'm the sole director and employee but I have contractors working for me - 2 US, 2 in the UK and 2 in the Philippines
- Current costs are minimal other than contractor costs

What I would like to do:

- Reduce the 25% CT tax
- Reduce the 40% dividend tax
- Set up a structure to move funds to a holding/trust to provide for my family
- Set up a new company within this structure to trade stocks / invest (Cyprus?)
- Move to Malaysia / Singapore for 3-5 years to draw down from the company at a lower tax rate (whichever country is easier for this tax setup though leaning more to Malaysia for lower cost of living with a MM2H)

Can anyone provide any advice on how they would do it? I don't mind paying some tax but would really like to reduce it from the current UK rates

I'm thinking:

- Current app company move to a Delaware LLC - All earning are outside of Delaware so would be 0%? Would setting up a bank remotely fine?
- Set up the investment company in Cyprus - This is one for down the line rather than right now but with 0% tax on investments it would make the most amount of sense?

- Holding company - Unsure:
- Singapore - would need the sub-companies taxed 15% to not get any more tax - acceptable if this is easiest and most straightforward
- ADGM - perhaps but there's not a lot of information about it
- Lauban?
- Dubai freezone? - Probably hit with a 9% tax but that's acceptable but I assume I would need a visa and have to visit every 6 months?
- Open to other recommendations

- Trust company - No idea on best place for this but assume it would be a similar list to the holding company?

Any advice would be much appreciated.

 

[daniels27]

We had this few years ago.

K

Thread 'UK Res/Dom Offshore company strategy - will this work? (forex/crypto)'

Mar 25, 2021

Hi all,

I've taken a look on the forum and online but I haven't found a definite answer so here goes!

• I'm currently a UK citizen and domiciled here
• I'm looking to set up an overseas company to trade crypto and forex (just for myself rather than clients or anyone else)
• Would 'start from scratch' so they'd be no risk of pre incorporated profits. The company would be personally funded on incorporation and left to run from there
• Plan to leave any profits in the company year on year. When I do wish to withdraw, I would look to leave the UK for 183+ days in a tax year to...

• Kaladin
• forex trading trading crypto
• Replies: 1
• Forum: Offshore Company

I think the main question is whether you are willing to leave UK or not. Then the second question is how much tax can you pay?

There are plenty of options from 0 to 50% and beyond if you are willing to move.

 

[Offoffshore]

(Reduction of 25% corp tax) Move to a low tax jurisdiction will decrease the CT in the UK. Find an accountant to calculate PE allocation in the UK. The general principle is: the less the PE in the UK, the less UK corp tax.

Your corp in a new jurisdiction may need to pay corp tax in a new jurisdiction due to PE there.

(40% dividend tax) These income from the UK entity should be classified as disregarded if you live outside of the UK.

You may be subject to new personal income in the new jurisdiction.

(General approach)
-Move to a new jurisdiction with low tax rate.
-Decrease PE in the UK for less corp tax.
-Set up holding company/trust in a safe jurisdiction for asset protection
-Set up investment company in a good jurisdiction with less tax. Move fund from UK company to new jurisdiction (Cyprus etc..) with capital allocation. This shouldn't trigger any tax.

 

[Kaladin]

We had this few years ago.

K

Thread 'UK Res/Dom Offshore company strategy - will this work? (forex/crypto)'

Mar 25, 2021

Hi all,

I've taken a look on the forum and online but I haven't found a definite answer so here goes!

• I'm currently a UK citizen and domiciled here
• I'm looking to set up an overseas company to trade crypto and forex (just for myself rather than clients or anyone else)
• Would 'start from scratch' so they'd be no risk of pre incorporated profits. The company would be personally funded on incorporation and left to run from there
• Plan to leave any profits in the company year on year. When I do wish to withdraw, I would look to leave the UK for 183+ days in a tax year to...

• Kaladin
• forex trading trading crypto
• Replies: 1
• Forum: Offshore Company

I think the main question is whether you are willing to leave UK or not. Then the second question is how much tax can you pay?

There are plenty of options from 0 to 50% and beyond if you are willing to move.

So we didn't have this a few years ago. That was for a company I started in 2021, and closed out last year. This post is not talking about offshoring crypto/forex and that post was not about holding or trusts. Can't see any overlap. If you prefer users only ever post a single question on this forum that's fine, I'll make sure to tell others and I hope they'll see this post about getting called for asking multiple unrelated questions 4 years apart!

Additionally, I clearly stated on my post that I was looking to move to Malaysia or Singapore for 3 to 5 years. I thought it would be obvious that would mean I would leave the UK? Also, I do know moving somewhere will mean I would have to pay between 0% and 50% tax. I mean, like, obviously? I don't know if you're just a troll or a low effort poster.

 

[Kaladin]

(Reduction of 25% corp tax) Move to a low tax jurisdiction will decrease the CT in the UK. Find an accountant to calculate PE allocation in the UK. The general principle is: the less the PE in the UK, the less UK corp tax.

Your corp in a new jurisdiction may need to pay corp tax in a new jurisdiction due to PE there.

(40% dividend tax) These income from the UK entity should be classified as disregarded if you live outside of the UK.

You may be subject to new personal income in the new jurisdiction.

(General approach)
-Move to a new jurisdiction with low tax rate.
-Decrease PE in the UK for less corp tax.
-Set up holding company/trust in a safe jurisdiction for asset protection
-Set up investment company in a good jurisdiction with less tax. Move fund from UK company to new jurisdiction (Cyprus etc..) with capital allocation. This shouldn't trigger any tax.

Thanks for this, I hadn't considered the PE allocation, my initial thought was to sell the UK company to the holding company - I would have to pay capital gains for the sale from myself to the holding company but I'll look into it.

After the useful post from Daniels27 above I think I will just take my questions to a company who have dealt with in the past rather than looking for businesses on here to help with it.

Mod, feel free to lock / delete this post.