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UK Resident - HK Company - How to keep central management & control non-UK?

Luxxxtino

Mentor Group Gold
Jun 4, 2020
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Hi all,

I run an eCommerce business (have stock and sell in the US and EU) currently out of a UK LTD company as I'm a UK resident.

I'm aware that if I want to switch over to a HK company, I need to prove to HMRC that the company is centrally managed and controlled outside of the UK.

A lot of the advice regarding CM&C online is for large companies (e.g. Ensure the majority of shareholders are non-UK etc.) and mine just has me as a director.

Now I'm happy to fly abroad and conduct all my board meetings with minutes in France, Spain etc. but will this be enough for HMRC to accept that central management and control is non-UK?

I'm not sure if it makes a difference, but we have no physical ties (ownership of property) to the UK other than we have inventory stored there and sell to customers there, and of course have a UK resident as the only director.

Thanks very much
 
Hire a local accountant that can be the director. Taxes are officially 16.5% but it's 6.5% for the first £200.000 on profits and you can deduct almost everything as expenses. To don't mention that you can build an offshore company somewhere else and derivate the profits with the IRD not bothering
 

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