Opening a UK company on my brother name

[Mr shultz]

I don't want my name to be attached for assets and I am a not a UK/US resident.
Today I was thinking about opening a new company for Internet marketing services and let my brother register it on his behalf.
In exchange, I will pay him a monthly salary from the revenue that we will generate from this company.

My plan is to simply tell him to register the company at 1st formations and that's it.

Any advice will be appreciated.
Thanks

 

[NicolasMaduro]

its too shady for your own name to be on the paper but not your own brothers name?

 

[Sols]

Let's take it one step further. Even if your brother agrees to this (I'm assuming you will have his informed consent), you still haven't solved for how you get the money yourself. Unless you're a shareholder, you can't get dividends to salary is the only way you can get money directly out of the company. So is the company going to pay you a salary as an employee? That's payroll taxes + personal income tax and it has to be reasonable market rates.

Another route is your brother gets the dividends and then gives you money but depending on local laws where you live, you may run into gift tax and related issues if the amounts reach certain limits. Speak with a local tax adviser about that.

You may run into problems if your brother doesn't have professional or academic background which corresponds to what the business does. Say your brother is a firefighter and your business does internet marketing. The complete mismatch in background may raise warning flags with banks, if the amounts start getting high.