Countries with cheap maintenance fees?

[Mani]

Are there any places where you can maintain an investment holding company (US stocks) and bank account for less than $200?

If not, what are the lowest cost locales? The lowest I've seen so far is $500/year maintenance for a Seychelles company.

 

[Martin Everson]

UK holding company with dividends exemption i.e tax free when less than 50 employees and under 10 million balance sheet.

£12 to setup
https://www.gov.uk/limited-company-formation/register-your-company
£29 a year for a registered address
https://yourlondonaddress.co.uk/product/london-registered-office-paid-annually/#tab-description
£0 Free
https://transferwise.com/gb/borderless/pricing
£13 Annual Return
https://www.gov.uk/government/publications/file-your-annual-return-ar01
Annual Running cost is £13 + £29 = £42

If you are not savvy, don't want to use your broker reports to do accounts then use an accountant to do filing and tax work. Typical costs below :

£210+ VAT
http://www.rjaccountancy.co.uk/fees.html

 

[Mani]

Always impressed with the level of knowledge on this forum, thank you

 

[Mani]

I would like to keep my name off the company. Nominee directors are less than ideal.

Is it possible to do this instead by having 2 companies, one with my name on it owning the 2nd one without my name on it?

And would this create a local UK tax burden on the company that owns the other one?

 

[fshore]

UK holding company with dividends exemption i.e tax free when less than 50 employees and under 10 million balance sheet.

£12 to setup
https://www.gov.uk/limited-company-formation/register-your-company
£29 a year for a registered address
https://yourlondonaddress.co.uk/product/london-registered-office-paid-annually/#tab-description
£0 Free
https://transferwise.com/gb/borderless/pricing
£13 Annual Return
https://www.gov.uk/government/publications/file-your-annual-return-ar01
Annual Running cost is £13 + £29 = £42

If you are not savvy, don't want to use your broker reports to do accounts then use an accountant to do filing and tax work. Typical costs below :

£210+ VAT
http://www.rjaccountancy.co.uk/fees.html

UK company would still be taxable on capital gains, and I believe not all types of dividends would be tax free.

 

[Martin Everson]

I would like to keep my name off the company. Nominee directors are less than ideal.

Is it possible to do this instead by having 2 companies, one with my name on it owning the 2nd one without my name on it?

And would this create a local UK tax burden on the company that owns the other one?

Once you go into structures that prevent your name appearing on company house register the costs go well above your target $200 a year - like 10 times over. You can read through the below uses of a Trust on a UK company to protect your name appearing but it aint cheap.

https://www.coddan.co.uk/trust-registration-services/
One important thing to mention is that in 2019 it is all about a companies centre of control i.e where decision are made. This determines where tax is to be paid. So for example having a Seychelles company that does not pass a substance test for being resident in Seychelles and likewise a UK company all mean you can end up paying tax in the location of the place of company control - i.e the country of resident of the director.

However, trust me that forming an offshore company with no local substance will mean tax issues in your home country of most western countries in 2019. What you may save in fees and gain in privacy you will loose in tax and complexity once you figure out where you will actually need to pay tax - which is in home country.

 

[dutchnik]

UK holding company with dividends exemption i.e tax free when less than 50 employees and under 10 million balance sheet.

£12 to setup
https://www.gov.uk/limited-company-formation/register-your-company
£29 a year for a registered address
https://yourlondonaddress.co.uk/product/london-registered-office-paid-annually/#tab-description
£0 Free
https://transferwise.com/gb/borderless/pricing
£13 Annual Return
https://www.gov.uk/government/publications/file-your-annual-return-ar01
Annual Running cost is £13 + £29 = £42

If you are not savvy, don't want to use your broker reports to do accounts then use an accountant to do filing and tax work. Typical costs below :

£210+ VAT
http://www.rjaccountancy.co.uk/fees.html

Thank you so much for this post. Any recommendation also for UK nominees director service?

 

[Martin Everson]

Thank you so much for this post. Any recommendation also for UK nominees director service?

Not at present.

 

[Remy]

UK holding company with dividends exemption i.e tax free when less than 50 employees and under 10 million balance sheet.

£12 to setup
https://www.gov.uk/limited-company-formation/register-your-company
£29 a year for a registered address
https://yourlondonaddress.co.uk/product/london-registered-office-paid-annually/#tab-description
£0 Free
https://transferwise.com/gb/borderless/pricing
£13 Annual Return
https://www.gov.uk/government/publications/file-your-annual-return-ar01
Annual Running cost is £13 + £29 = £42

If you are not savvy, don't want to use your broker reports to do accounts then use an accountant to do filing and tax work. Typical costs below :

£210+ VAT
http://www.rjaccountancy.co.uk/fees.html

Great job Martin ! Thanks

 

[lavel]

OP, do you mind to tell us where you setup your company and if it works as you planned it?

 

[buenosdias]

UK holding company with dividends exemption i.e tax free when less than 50 employees and under 10 million balance sheet.

£12 to setup
https://www.gov.uk/limited-company-formation/register-your-company
£29 a year for a registered address
https://yourlondonaddress.co.uk/product/london-registered-office-paid-annually/#tab-description
£0 Free
https://transferwise.com/gb/borderless/pricing
£13 Annual Return
https://www.gov.uk/government/publications/file-your-annual-return-ar01
Annual Running cost is £13 + £29 = £42

If you are not savvy, don't want to use your broker reports to do accounts then use an accountant to do filing and tax work. Typical costs below :

£210+ VAT
http://www.rjaccountancy.co.uk/fees.html

Very informative and valuable post @Martin Everson.

I just have a few questions, if you don’t mind.

1. Can I do business with a US (or any other foreign) company with a company like this?

2. Is 100% foreign ownership okay? Or do I need a local? (Note: I don’t mind being listed on public databases, registers, etc.)

3. I don’t have a problem with my name appearing on the public register. But, since the company directors need a UK address, can I use a mail forwarding address for it?

4. What about bylaws, prescribed particulars (i.e., what rights each share gives shareholders), etc?

Thanks again for your help mate.

Regards.

 

[Martin Everson]

1. Can I do business with a US (or any other foreign) company with a company like this?

Yes

2. Is 100% foreign ownership okay? Or do I need a local? (Note: I don’t mind being listed on public databases, registers, etc.)

100% foreign is fine

3. I don’t have a problem with my name appearing on the public register. But, since the company directors need a UK address, can I use a mail forwarding address for it?

You can use any UK address for correspondence.

4. What about bylaws, prescribed particulars (i.e., what rights each share gives shareholders), etc?

See below

Set up a private limited company

 

[blackeric]

Will it be wise to go open a company by myself on Companies House website? Or should I do it via some UK company that specializes on it? There're 2 well-known ones, but they require a proof of my current address, whereas it's not required when registering a company by myself on Companies House. But they facilitate other difficulties - address in the UK, paper work, etc.

 

[Martin Everson]

Do it yourself would be my first choice otherwise use a specialist like Turner Little that has been around a very long time and can help you with paperwork if required.

 

[zcream]

The UK incorporation requires - a director, one shareholder or guarantor, who can be a director and People with Significant Control.

Can I confirm that one person can be a director, shareholder and PSC with 100% voting rights. Essentially, you dont need another person unless you absolutely decide you want one.

 

[JohnLocke]

Can I confirm that one person can be a director, shareholder and PSC with 100% voting rights. Essentially, you dont need another person unless you absolutely decide you want one.

Is this is question, if so yes for a UK company it's no problem at all.

 

[zcream]

If you do not have revenue for a year, is it still compulsory to file returns ?

 

[antrax]

Hello, first of all thank you very much for all the excellent information that you published. I am very interested in creating a holding company in the UK to make investments in stocks and etf mainly and my amounts are not so high (approximately 2000 USD in assets) but my country currently has very strong exchange restrictions and I prefer not to invest in a personal capacity. The configuration presented by @Martin Everson is perfect but I would like to know if there is any recommended accounting software to present the corporation tax and other required forms, since the amounts I have are not many and I will only pay money to the company by issuing shares 1 or 2 times a year. I hope you have any advice. thank you very much to all.

 

[JustAnotherNomad]

Would you be able to use UK tax treaties, such as reduced US withholding tax on dividends without substance in the UK?

If you use a UK company (Ltd. or LLP) for operative business, would there be UK tax to be paid if you don’t have UK customers?

 

[Martin Everson]

The configuration presented by @Martin Everson is perfect but I would like to know if there is any recommended accounting software to present the corporation tax and other required forms, since the amounts I have are not many and I will only pay money to the company by issuing shares 1 or 2 times a year.

Try some of the ones HMRC approves and see if they have the features you need. Not all software listed is just VAT focused.

https://www.tax.service.gov.uk/making-tax-digital-software