Place of Management

[bluehorseshoe]

Hi guys,

New to the forum, I am considering opening a company in Switzerland for reasons of competitive privacy but I am based in the UK and would be operating the business from London - I am trying to understand how this would work from a taxation perspective.

If I am based here, and operate out of the UK, would I have to pay tax in both countries? If not then how do I delcare my tax residency and where would I be paying taxes?

 

[Juoffshore]

Hi,

If you open a company abroard and if you manage this company from the UK, your foreign company will be taxed as a UK company as the central control of management of the company is in the UK.
If you want this company to be taxed in switzerland you need to add substance on it (office, employee...) and all the decisions have to be taken in switzerland

 

[KraftyAndy]

Some reading material for you:

https://www.taxation.co.uk/Articles/2012/10/24/48781/keeping-house
http://taxbar.com/wp-content/uploads/2016/01/Thoughts_on_Corporate_Residence_DG.pdf.pdf
Corporate residence: a new line in the sand? | Tax Journal

 

[bluehorseshoe]

I understand - how do I ensure the Swiss government doesn't tax me and the UK one does? I don't want to get a bill from both - how do I declare myself of being in this structure?

 

[KraftyAndy]

You register with HMRC in the UK.

Can I ask what the point of this would be though? Why not just register a Ltd company in the UK?

 

[bluehorseshoe]

You register with HMRC in the UK.

Can I ask what the point of this would be though? Why not just register a Ltd company in the UK?

Because a Ltd company here in the UK would expose me as the director of the company and I don't want that to be the case for competitive (not shady) reasons

 

[KraftyAndy]

Because a Ltd company here in the UK would expose me as the director of the company and I don't want that to be the case for competitive (not shady) reasons

Why not use a nominee director/shareholder service? It would work out a lot cheaper than forming a company in Switzerland (and all the red tape that would go with this).

 

[bluehorseshoe]

Why not use a nominee director/shareholder service? It would work out a lot cheaper than forming a company in Switzerland (and all the red tape that would go with this).

Wouldn't I still have to be the second director in the company? How would I have control?

 

[KraftyAndy]

You would have control through a declaration of trust.

You would be listed, I believe, as a person of significant control. I don't think there is any way around this.

 

[bluehorseshoe]

Okay do you (or anyone reading this) knows if the DTAA between UK and Swiss follows a tax exemption method or a tax credit method?