Archive for category Holding Company
So, you've just won your first contract and your agency is asking you for the details of your UK limited company. What do you do; should you setting up a limited company? How do you know whether the limited liability company route is best for you, or would an alternative trading option be better? There are advantages and disadvantages to running UK companies. It is your personal circumstances, your career plans and aspirations and the nature of your contract that will determine the right trading option for you. You may also find that the decision is taken out of your hands, and that your agency or client insists that you set up a limited company before they will even do business with you.
UK limited company advantages
Company formation is incredibly fast and inexpensive. You can register a limited company with Companies House, the UK agency which regulates every ltd company in England and Wales, in a matter of hours and for as little as a few tens of pounds if using an online service. As a contractor you can benefit from significant tax advantages by trading through a ltd business. Most contractors pay themselves a minimum salary and take the company profits as dividends, which can result in much higher take-home pay compared to being paid a salary from other trading options.
You can claim legitimate business expenses from your own ltd company, such as the costs of running a home office with all the computers, software and equipment that requires, plus travel expenses, subsistence and even training costs. And, as its name suggests, a limited liability company can protect your personal assets, such as your home, if the worst happened and a client decided to sue your company.
Disadvantages of a limited liability company
Even though your company is a separate legal entity from you personally, you still have duties, obligations and responsibilities as a shareholder and director. This would not apply were you to contract via an alternative trading option.
After you register a limited company, you must send annual accounts prepared by your accountant, annual returns and notifications of any changes to shareholdings and company officers, such as directors and company secretaries, to Companies House
Your UK limited company must also file a corporate tax return with HM Revenue and Customs, the UK's tax collection agency; failure to do so can result in fines and even criminal prosecution.
Evaluate the pros and cons before deciding
Setting up a limited company can bring you many benefits, such as increased take-home pay, the ability to claim business expenses and protection from clients looking for a scapegoat.
But some contractors feel the burden of paperwork, such as corporate tax returns, and the responsibility of running a company are too great and choose alternative options for contracting.
Consider the pros and cons and consult a professional, such as a contractor accountant, before making your final decision about whether registering a limited company is right for you.
Dave Chaplin was an IT contractor in the City and knows what it takes to carve out a successful contracting career. He has turned all his and dozens of contractor experts' experiences into a fantastic resource of guides, advice & detailed contractor information, including loads of guidance about setting up a limited company.
First of all I whish all our readers a happy new year 2011, we want to start this year by quickly outline the different benefits a Cyprus Company has compared to many offshore jurisdictions.
A Cyprus Company can be registered for VAT (actually the rate is 15%) this is of the benefit for the owners and the companies business customers because they are able to deduct the VAT they have paid to your company from their local VAT amount they have to pay to the local VAT / Tax office. Further Cyprus has the lowest VAT and Tax within the European Union which is from a competition point of view a great advantage since you can offer your services and goods to a lower price than your competition in other EU countries can.
A Cyprus Company only pays 10% corporate TAX which is the lowest in the entire European Union, again from a competition point of view it is a great advantage since the company will be able to reinvest more money into the business activities or to the owners in order to be more profitable and to grow, then the competition in other EU countries.
A Cyprus Company don’t pay any tax on Interest or Dividends, means more profit to the owners, further it is allowed to make loans in a Cyprus company which is not allowed in almost any other EU company.
Cyprus has a Double Tax Agreement with the Seychelles which means the company has to pay tax in the Country of operation, so towards your clients it can look like it is a European Company they do business with but structured correctly it is a Seychelles company, so the operation has to be managed in the Seychelles which is properly not an issue to prove, since the tax rate in the Seychelles is 0% the corporation has no tax to be paid.
With a Cyprus Company the owners comply to European Laws which means more trust to your company compared to any Offshore jurisdiction like Panama, Belize, St. Kiits etc. – it also means that the Cyprus company avoid to be on different governments radar while doing legal business, this also towards the banks who have to transfer money to the bank from customers who bought a service or products from the company.
A Cyprus Company can help you to grow your wealth if structure right, no other country will offer you that benefit that’s why Cyprus is the most popular jurisdiction even in 2011 to do business.
A Cyprus Holding Company has a lot more to offer than just the above mentioned, for instant if the goal is to make huge profits but at the same time to achieve Asset Protection then a Cyprus Holding Company offer you all this, do you for instant know that it costs a lot of money to try to sue a Cyprus company for any reason or to try any debt collection? – No this is not known by many, but compared to for instant UK, Germany, Sweden or Denmark where you can get a court order for almost free in order to collect your debts then it costs a fortune for the creditor to collect those money. Also all asset’s in a Cyprus Holding company are “moveable” means you can if done right move your assets to another company so that if a creditor should penetrate the company in question there will be no assets.
A Cyprus Company can be structured by using Nominee Directors and Shareholders 100% anonym, that’s not possible in most other European Countries and one of the strongest benefits Cyprus has to offer.
Why do I need to be anonymous?
The reasons are many, it could be in a process to take over a competing company but where the real buyers want to stay anonymous to avoid any complications in the take over. It could as well be that the owners have a business running to 1 target group of industries as retailers but as well want to be Whole Sale for the competition, who would buy from a competitor if they know? – no one will so it can be of benefit to have the ownership of the Whole Sale company to be anonymous, in order to get the business from the competition. These are only a few reasons, as first mentioned there are many more.
Most important is that regardless what the purpose of the Cyprus Company is, you are always in front of your competition.
We hope you enjoy reading, stay tuned to the next publication.
Did you know that there is a Offshore Company Forum available where you can ask questions but as well read about others experience, issues and much more, forums are born to help the public, so use it this opportunity to learn more and be prepared to take out your competition or simply start a profitable business.
Setting up a business involves taking a number of precautions and making sure that you have everything right. There are a number of professionals ready to help you with the advice needed for this activity. They include tax consultants, accountants and lawyers. A reference from a friend may help since this is most likely going to get you the best person on your job. Read the rest of this entry »
Cyprus which is categorized third among the largest islands in the world is known for its stability in company formation. Formation of a Cyprus company entails all procedures that are followed to establish a company in the Cyprian territory. Read the rest of this entry »
Rules governing the registration of companies are almost the same globally. They are only differentiated from each other depending on the area of jurisdiction and the nature of international business climate.
For a company formed in Cyprus, it has to meet the demands of clearly set rules and regulations. This legal structure looks as below; Read the rest of this entry »
We are happy to announce that we now have a about 20 Cyprus companies ready for sale and which are registered in the years 2006 and 2007, those companies can be bought immediately and can be a perfect instrument for a fast and secure incorporation in Cyprus. Read the rest of this entry »
When considering a Holding company structure a Cyprus Company Formation can be of great benefit for the beneficial owner of the Cyprus Holding company. A Cyprus Company Formation can take place very quickly and if registered accordantly a Holding Company in Cyprus can be formed. Read the rest of this entry »