- February 24, 2017 at 12:56 PM#27587
I WOULD LIKE TO MAKE A VISA UK APPLICATION; I created a company Ltd non-resident in London I could not open a bank account for my company. I would like to know if you can tell me what should I do to get a visa
- February 27, 2017 at 7:03 PM#27609
Your Immigration ExpertKeymaster@GlobalVisas
Open A UK Company And UK Visas
You will need to secure a Tier 1 Visa to be eligible to move to the UK to open a business. Please see our Tier 1 investor guide. To open a company in the UK for investment purposes here is some information that may help.
Company Formation and Management Services
The UK corporation tax is currently the second lowest in the G7. From April 2015, a uniform rate of 20% payable against the global net profits of a UK company. Including a UK entity in any structure can substantially help to secure significant cross border tax benefits. No other country has as many tax treaties as the UK and dividends, interest, royalties, consultancy fees or marketing commissions can all be received by a UK company without the levels of withholding tax or anti-avoidance rules that would apply to direct payments to an offshore entity.
UK Holding Companies
A UK company can be a useful vehicle for the collection or channelling of foreign dividend income received from qualifying subsidiaries. The general rule is that all dividends paid by a subsidiary to a UK parent company are subject to corporate income tax. Nevertheless, the UK grants double tax relief by way of a credit for foreign corporation tax underlying the dividends provided that the UK company holds, directly or indirectly, at least 10% of the share capital of the distributing company. If the foreign company is subject to a corporate tax rate of 20% or more, the credit will usually be a complete relief from UK corporation tax. If the UK company is itself owned by an offshore company, the dividend income received by the UK company can generally be absorbed by the offshore parent company without consequence to further taxation.
If the UK company owns a group of active subsidiaries (at least two) and one of these were to be sold, since 2002 the resulting capital gain arising to the UK holding company should not be subject to UK tax via a relief called the substantial shareholding exemption. For a company to benefit from the exemption, the holding company must hold at least 10% of the share capital of the subsidiary for a period of 12 continuous months within the two years prior to the disposal. The UK holding company and the subsidiary it is selling must both be trading companies, and their activities cannot include to a substantial extent activities other than trading activities. These conditions must be satisfied both before and after the disposal of the shares.
The UK has signed over 100 double taxation treaties and coupled with the attractive holding company regulations, the UK is an extremely attractive domicile to establish an international headquarters, especially for business expansion into Europe and the rest of the world.
UK Trading Companies
Offshore companies engaged in international trade can be perceived negatively but this issue can often be resolved by using a UK company in conjunction with an offshore company. A UK company involved with a commercial activity enters into an agreement with an offshore company under which it agrees that it will trade on behalf of the offshore company as its nominee. All contracts of purchase and sale and all invoicing will be made out in the name of the UK company, which will also receive any revenues as nominee for the offshore principal. The agreement should state that all monies received are received as nominee for the principal except for an agreed fee, which will be retained by the UK company. That fee is usually expressed as a percentage of the gross revenues received. The standard form is that 10% of profits are retained by way of fee by the UK company, resulting in an effective rate of corporation tax of around 2%.
It is essential that: no trading activity takes place in the UK; no UK-source income is generated; both the UK and offshore company are managed by a different board of directors not resident of the UK; and that the ultimate beneficial ownership of each company is distinctly different and should also be non-UK resident. The UK company should still be able to obtain a UK VAT number, its bank account can be located in the UK, and accounting and regular administration services can be provided and enabled in the UK.
UK Limited Liability Partnerships (LLP)
The essential feature of a LLP is that it combines the organisational flexibility and tax status of a partnership with limited liability for its members. This limited liability is possible because an LLP is a legal person separate from its members. However LLPs are “tax transparent” which means that each member, rather than the partnership itself, will be assessed to tax on their share of the LLP’s income or gains. Any non-UK source profits or gains made by an LLP will not be subject to UK tax unless the members are UK resident individuals or companies. There are no restrictions on the residence or nationality of the members of an LLP and therefore, if the members of the LLP are non-resident and the income of the LLP is non-UK source, the LLP will not be subject to UK taxation.
It should be noted that LLPs with overseas members cannot generally avail themselves of treaty benefits because of the LLP’s tax transparent status. In determining residence status a UK LLP would be deemed resident in the jurisdiction from which it is controlled, which would ordinarily be the jurisdiction in which its members are situated. There is an obligation for an LLP to file an annual partnership tax return whether the partners are taxed or not.
- March 15, 2017 at 12:44 PM#27699
I need more information about llp with not resident shareholders