Opinion trading company for invoicing

[D B COOPER]

Hello hope I am on th right forum
is my first post

i am a farmer resident in the uk
what I am doing is not rocket science but need good advice from switched on people

I produce fresh produce and ships them to Asia

so I invoice and export from uk

i like to setup an intermediary company somewhere where I can invoice to

i have been advise to look at Malta or Cyprus

if I put some numbers on paper

i grow produce - cost me £3
I sell to immterdiary Company for £5

What the Intermediary company does should not be eu’s problem

produce ships directly from Uk to China
after receiving instruction from intermediary company

where should this company be located ? Ideally

i am Uk residence of course

intermediary company then sells to China for £20
keeping profit where intermediary company is located

so I will need credit card and accLunt facilities
funds will be invested or spent outside uk

any suggestion would be appreciated

 

[Spinat]

I assume you have already consulted a tax advisor or lawyer that has pointed you in the direction of Cyprus or Malta is that true? If so, I would follow their guidelines since they will be the most important people you have to consult if the tax man knocks on your doors. For your setup I would defiantly find a legal setup backed up by local advisors.

The reason for me to say that is that you can't move around like most of us on this forum can if required.

Just my 2cents.

 

[Martin Everson]

Sounds like your thinking of basic profit shifting which HMRC would be on to i.e shifting profits to the intermediary company and eroding HMRC's tax base. You would need to take measures to ensure everything is done at arms length if you go this route. Also HMRC could deem it all an artificial construct if intermediary is nothing more than a shell company controlled by you.

There is no way you can be involved in the intermediary company at any level including being the beneficial owner after using nominee directors and shareholders. It would need to be a 100% arms length intermediary company with a tangible presence and operation in its location.

 

[D B COOPER]

Wow

thank you for guidance so for

so what I am trying to achieve is “profit shifting“ which I have no idea

I suppose I am Not trying to reinvent the wheel here

i have not consulted anybody to date

just googling around

I can get a distant family member to run this intermediary company

where would you folks suggest if not Malta or Cyprus

another i am thinking is Hong Kong

so most of the profit stays in Hong Kong

outside the eu and sell on from Hong Kong to China ...?

 

[Elitegold7]

Wow

thank you for guidance so for

so what I am trying to achieve is “profit shifting“ which I have no idea

I suppose I am Not trying to reinvent the wheel here

i have not consulted anybody to date

just googling around

I can get a distant family member to run this intermediary company

where would you folks suggest if not Malta or Cyprus

another i am thinking is Hong Kong

so most of the profit stays in Hong Kong

outside the eu and sell on from Hong Kong to China ...?

Dubai is best suited for this transaction in your case especially if its going to be not a 1 time thing as i understood. There are many existing real trading companies who will handle this complete transaction for you for a fee ofcourse & put everything on paper as well and wire the profit part to any corner of the world on completion off every transaction. So its all pretty legal and well documented. If u need a reference send me a PM and I shall share.

 

[JohnLocke]

If u need a reference send me a PM and I shall share.

You are welcome to share the information here if it's not your own service.

 

[Elitegold7]

Nope its not my own service)) How exactly do i share the info? Provide the website or social media link or the contact person. Pls advise as still not 100% sure whats ok to do & whats not. Sorry if i sound childish. Just do not want to be on the wrong side off things.

 

[Martin Everson]

Post here and let us have a look. Could be interesting if its legit.

 

[Martin Everson]

outside the eu and sell on from Hong Kong to China ...?

Hong Kong to mainland China would be natural route. As HK is gateway to mainland China so would make logical sense to anyone looking at the structure. You don't want to show HMRC i.e you are selling to some Marshall Islands shell company that is selling on to China.

What you need to be careful of also is that if their a are other farmers in your line of work that are selling comparable commodities and they are selling for like £10 and you are selling for like £2 then HMRC is unlikely to accept this situation. It would be like someone selling gold at £200 an ounce and everyone else selling at £1300 an ounce. It would be clear underselling which would warrant investigation and explanation as to why by HMRC .

However 9/10 times you would not be centre of focus unless your profits suddenly started decreased without any change in sales volume or sales costs from one year to the next.