Published on Jan 10, 2017
This tweet by my good friend Mark Rofe wrote today about where to start his company got me thinking today.
He wonders if he should incorporate his business lccally where he lives in Dubai.
Pros: no real taxes as such.
Cons: High setup fees, Someone else needs to own 51% of the company locally and many others.
Con is he wont be living in Dubai for the rest of his life so he will be managing it from wherever he ends up which is more likely UK.
There were suggestions for Ireland, Estonia and other places.
I personally think UK.
The main problem with having a company at a distance is the distance.
Yes you can do a lot online nowadays but its not always that simple.
The ongoing costs often outweigh the saving you have on tax unless you earn rediculous amounts.
For personal, Logistical and many other reasons my best option for setting up a company was Gibraltar.
They say its not expensive to have a non UK but little and big charges add up so it is really expensive.
They say £350 or whatever for various countrys for setup but there is many add ons that mean the actual figure you pay is way higher than that.
The tax is only 10% on profit but as soon as you take money out as a salary it becomes taxable at a high rate as your personal allowance.
I dont know how it is with a UK company but if you earn 100000 gbp in your Gibraltar company you pay 10% tax on the profits.
If you take a salary of 100000 gbp your company made 0 profit. so 0 tax.
You still need to pay tax where you are sat when you make the money on your personal income at the rate of that country.
The other problem is the bank account. It can get really expensive in time, charges and compliance to have bank accounts in certain countrys.
This isnt a very well thought out post with no real solid information.
What I will say though if you are not a highly skilled and experienced tax advisor then dont try and be smart.
Just go with the most logical and simple setup.