UK company - can I hide me being UBO?

[Wyoming]

My background:
US citizen and I own a telecommunications consultancy. I currently reside in Colorado but previously resided in Wyoming. My telecom consultancy is an LLC in Wyoming with several foreign registries (Colorado, Arizona, Florida, and New York, all pointing back to my Wyoming LLC with my register, not my name). I also own 21 LLCs for every rental property I own in Wyoming. I also have an active LLC for web hosting with no business but with a bank account. That means I have 23 different LLCs with 23 different bank accounts. When you look up each LLC they show my registered agent, not me.

I would like to branch out to do some work in the UK, legal and pay my taxes. What I do not want is my name to show up with Companies House. Since I have 23 different entities, could I reasonably start a new LLC or incorporation in Wyoming, my agent indicate now single owner with more than 5% (however I will be the UBO 100%) and use this as a good excuse to allow formation in the UK without my name associated with it? I have both very reliable agents and law firms that can act as my agent in these matters if need be.

 

[James Turner]

As UBO on a UK Ltd Company. Even if you are not named on the company as a Director or Shareholder and have a controlling interest (otherwise invisible) you will still be required to be named on the PSC (Persons with significant control register). Of course the system does not take account of anyone intent on not disclosing the full facts. I hope this helps.

 

[Wyoming]

I am asking because I know someone who had a New York corporation with a single UBO and attempted to hide their ownership but was quickly and easily pierced. The UBO was published with Companies House. I have a contractor living in the UK but a Polish citizen who is willing to be my director. I trust them extensively (but not 100%). I think with a cursory investigation things will hold up and that is what I am looking for.

 

[Sols]

What Mr. Turner is saying that no, you cannot (easily) remove yourself from being published as a Person with Significant Control (PSC, which is basically the same as UBO) with the Companies House. However, you can lie on the incorporation forms and there are, at least for now, very lax enforcement on making corporate service providers actually verify who the UBO is. While this might sound good (albeit illegal) in theory, it risks falling apart when you open a bank account and the bank does more in-depth KYC on you and the company. If the UBO presented to the bank is different than the PSC listed in the Companies House, you may run into some awkward questioning.

In theory, you can also try to dilute the company to the point where no single shareholder qualifies as UBO or PSC but that's not a guarantee of success.

You can remove yourself as UBO through more sophisticated structures involving trusts or similar arrangements (foundations, Stiftung, Anstalt), under which you remove yourself of ownership. It's expensive and convoluted, but as long as you work with a good fiduciary, it can work and is legal.

 

[Wyoming]

Thank you for both of your replies. I did not take into account KYC with my bank. I have two banks for my consultancy, a smaller bank with branches in both Wyoming and Colorado, but also Citibank for my activities in New York. I discovered that it was easier to have Citibank for my larger customers and further, I pay my Polish programming team from Citibank in London. It is easy for me to pay in GBP to those in the UK or PLN/EUR to those in Poland. Although the bank is already established, I still would prefer to eliminate some risk if I do expand to the UK.

I was already looking at alternatives to establish for my privacy after S.1978 - Corporate Transparency Act of 2019. I knew it would not go anywhere as long as Republicans control the Senate, but after the elections in 2018, I needed to keep my options open. I have a CPA and a lawyer who understand my need of privacy yet my complete willingness to pay taxes. I currently have customers that are larger service providers, local and federal governments, and utilities. I am currently 100% legal with no risk and plan to keep it that way even after potential changes next year. I was willing to bend the rules a little for expansion to the UK but I am not willing to give up my privacy, yet.

Again, thank you, I appreciate it.

 

[M0M0]

Same question here!

 

[CaptK]

Then on paper you can "franchise" it to the guy in the UK. Use your Citibank account for payments.

So you are not the PSC/UBO of the UK company but all invoices get paid to your GBP bank account. If it's personal account I'm sure being a customer of the bank they can open you a "trading as" account.