UK companies can be set-up quickly and cost effectively. Overseas companies who do not wish to have personnel located in the UK can outsource the running and administration of UK entities to us. UK companies can be used for the following purposes:
- International Holding Companies (IHCs): The UK is now one of the most attractive holding company locations in the world following exemption of foreign income and gains. Provided certain criteria are met UK holding companies can benefit from complete exemption from capital gains tax, zero withholding tax on dividend distributions from the UK and exemption of foreign dividends paid by underlying subsidiaries to the UK IHC.
- Nominee or “agency” companies: in conjunction with overseas “principal” companies for international trading in goods or services. The UK company would assume an administrative role in the structure.
- Royalty and dividend routing:minimising taxes on royalty income by interposing a UK company or taking advantage of the EU parent-subsidiary directive which enables dividends to be paid withholding tax-free between EU member states.
- UK VAT registrations: where an EU VAT registration is required so that a supplier in another EU member state can “zero-rate” for VAT purposes the supply of goods and services by quoting the UK VAT number on his intra-EC sales invoice or using the UK VAT number to recover VAT on the importation of goods into the EU.
- LLPs & LPs: using Limited Liability Partnerships and Limited Partnerships, such as UK LPs and SLPs (Scottish Limited Partnerships) for holding non-UK international real estate and other assets in a tax-efficient structure or for international trading in goods and services.
UK entities such as companies, LLPs, LPs and branches can be used for effective international tax planning and most importantly benefit from commercial credibility compared to standalone offshore structures which are increasingly coming under attack from tax and regulatory authorities worldwide.