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PanBak
04-20-2016, 12:39 PM
Hello,
I and some friends are interested in, starting a business. We heard about business formation companies in UK that help you to set up and run your business, but we have some questions. Firstly, what are the responsibilities each of us is going to
have? Secondly, as we are not from UK, our company will be taxed in our country or in England, and how will be taxed each of us? Also, what these kind of companies actually offer?

Thank you in advance for your help!

vangogh
04-20-2016, 02:47 PM
If you don't live in the UK and aren't going to operate your business in the UK, why are you looking to form a business in the UK? Why not form your company in whatever country you live in? Is there a reason why you think forming your business in the UK will be good for your business?


what are the responsibilities each of us is going to have?

That's something you have to work out between you and your business partners. What skills do each of you bring to the business? Are some partners contributing financially? Who will be working in the business day to day? Can you share with us the type of business you want to start and also what each person who'll be part of the business is going to do to help start and run the business?

PanBak
04-20-2016, 03:21 PM
UK is a good place to start your business for taxing reasons as the company will be taxed only when the income is over 8000 ( I think ). For a new startup company the success is not sure so this is really helpfull. The company we will make is going to provide services related to internet.

vangogh
04-20-2016, 07:20 PM
I think you're putting the cart before the horse. I wouldn't worry about saving on taxes before you've figured out how to make money with the business. I assume you can change your business entity or the location of your business down the road. The first step is getting the business started. I would do that in your own country in a way that make it easy for you to focus on starting the business.


The company we will make is going to provide services related to internet.

If you don't want to share more about the business, that's fine, but there's not much I can offer about who should be responsible for what without a lot more detail about the business and how much you'll each contribute to the business.

Harold Mansfield
04-20-2016, 09:38 PM
UK is a good place to start your business for taxing reasons as the company will be taxed only when the income is over 8000 ( I think ). For a new startup company the success is not sure so this is really helpfull. The company we will make is going to provide services related to internet.
I agree that you're putting the cart before the horse and over complicating just getting your business started and actually making some money.
Not sure what country you're in, but as a first time business owner who hasn't made a dime yet, already trying to game the tax system is just adding more things and expenses to manage that probably isn't even necessary.

Are the tax differences so great that it's still less than hiring an attorney in that country, setting up what ever the requirements are ( if it's even allowed) and paying the management fees? Also, most civilized countries still require you to pay income tax where you live...no matter where you set up. So that's double taxes.

I think you should get in touch with a lawyer or accountant in your country that can better guide you, but I still think you should spent your energy getting started and making money. If you make so much that creating a dummy corp makes sense, you'll have the money to set it up.

I know you have dreams and aspirations of making millions and having tax headaches, but I say get there first and then worry about it.

Alexanderb
05-24-2016, 01:40 PM
Firstly, what are the responsibilities each of us is going to
have?
It would depends ie. will you be both shareholders only or shareholders as well as directors. (obviously as officer of the company you are responsible to submit tax returns etc.,)
Secondly, as we are not from UK, our company will be taxed in our country or in England, and how will be taxed each of us?
An UK company will pay it tax in the UK on worldwide basis. CT on profits 20% and VAT (20%- normal rate) if VAT registered (please note VAT registration is optional for companies with turnover below £82,000 per year)
As for you personal tax, you need to pay income tax etc., in the country you are tax resident (ie. stay for at least 185 days per year) with exception to dividends (also note that as an director/shareholder you may opt to pay salary+dividends, just salary or dividends or neither of them).