When UK non-resident or offshore parties wish to conduct transactions at short notice, a UK company could provide the solution.
For example a Chinese company wants to buy a consignment of goods available at a good discount in Germany and wants to sell it to a customer in Sweden it could channel the transaction via a UK company.
Subject to the application of transfer pricing criteria the transaction could be structured tax-efficiently. The UK company could raise the sales invoice to the Swedish customer and receive the German supplier’s invoice. By the employing appropriate tax deductions (e.g. offshore contractor’s or introducer’s fees) the effective tax rate would be reduced and could be much lower than if the UK company was not involved in the transaction.
Please contact us for further details of how to set-up a UK “transactions” company and its uses.