Setting up offshore

[Offshorecompany]

I'm looking for some general guidance on a legal company structure that I am planning on setting up abroad.

I will not be managing or running the company at all, it would be a family investment company.

The company will be setup in a 0 tax jurisdiction I would be the shareholder and I would appoint a family member who is domiciled, and resident abroad.

When I look online at companies who do the formation the forms you have to fill out are confusing.

As they ask for ultimate beneficial owner. And I am wondering if that effects things for tax purposes? As far as I understand it as long as investment decisions are made by the family member abroad then the company is not tax resident in the UK.

Would I be classed as the UBO as the sole shareholder or would it be the director? I would only gain if a dividend is payed out - and this dividend would be taxed as my UK income.

I have phoned around a few local accountants and I am still looking for one that knows about offshore rules but it seems they are few and far between.

I may also setup a second company that I would be director of, and shareholder that I would register with HMRC and this will be a trading company based in the UK and I could use the non resident company to buy stock which can shift a small amount of profits abroad legally.

Could anyone here tell me if they see any problems with this setup?
Thanks

[wamstax]

It should be possible to set up the company abroad and secure non residence status especially when and if you have somebody that you can trust to have full autonomy as regards the company’s strategy and financial decision making. IMO it is not the day to Day management that will determine the tax residency but the higher management mentioned above that is the crux of matters.

As regards the second scenario you can be too smart in diverting your UK. Profits offshore and you have a Amazon/Costas syndrome. Apart from the normal avoidance restrictions on transferring your profits abroad (no doubt to be enjoyed by you when you’re abroad) there are transfer pricing considerations. Additionally do you really want to put a further complication in place as how are you going to keep your. UK actions and stock acquiring expertise from being seen as in the offshore company.

In any case nobody on this site is going to get involved in discussing tax planning that is so complex and needs specialist advice. I have seen too many disasters from cases where amateur tax advisers thought that they knew what they were doing You need a Specialist (not me as I only specialise in doing COP9/COP8 or other Serious tax investigations)

If you take such advice remember and get it in writing and follow the advice to the letter.