Can I move my Ltd registration abroad?

[sy8111]

Hi, all:

I've come up with this idea recently. I am going to move out of UK soon and do business and investment in another country. I feel my current LTD company is fit and want to bring it with me. There is balance in company account, with corporation tax paid already. Can I easily change my companies registration country and keep it running?

[borderreiver]

Short answer: no.

Long answer: there is AFAIK draft EU legislation to allow moving the registered office to another EU member state, but it's not been put into law anywhere yet and is likely to be hugely expensive even if you could do it (I imagine you would have to have articles of association etc checked by a solicitor to make sure it complies with the new home country of the registered office).

[chef]

I cant see how that would work, if your aren't registered as having the office on UK soil then you arent liable to uk laws. If, for instance, you are within German borders then a Ltd means nothing as the German equivalent is a Gmbh and so running a company in Germany would mean you pay German taxes and fall under German laws, in sweden the Ltd equivalent is an AG, netherlands I believe is a BV.

[sy8111]

OK. So is there other way I can move my company's money to another offshore company resides in another country? I want to keep running my business and don't want to first take dividend and pay a big chunk of tax, and then inject the rest of money into that offshore company. That is a big loss to company running capital.

Thanks

[borderreiver]

I suppose you could register a new company in the new country, owned by the UK one. That might work (at least contracts in the name of the UK parent company *might* still be valid when you trade via the new company) but it'd be complicated.

You really need to be talking to an accountant about this

[Clare@InTouch]

OK. So is there other way I can move my company's money to another offshore company resides in another country? I want to keep running my business and don't want to first take dividend and pay a big chunk of tax, and then inject the rest of money into that offshore company. That is a big loss to company running capital.

Thanks

Wouldn't it be a good opportunity to close down the company under MVL and get the money out at 10% tax? Assuming you have a year's trading history and are entitled to Entrepreneur's Relief of course.

If you undertake the management & control of your UK Ltd in another country then there's every chance that other country will expect (their equivalent of) CT. Then you have double tax issues. Much easier to just start a new company and close the UK one if that's an option.

[sy8111]

Hi,

I have had a look at Entrepreneur's Relief, and seems most IT contractor LTDs are qualified. Is it this simple?

If so it would be good news to me.

Wouldn't it be a good opportunity to close down the company under MVL and get the money out at 10% tax? Assuming you have a year's trading history and are entitled to Entrepreneur's Relief of course.

If you undertake the management & control of your UK Ltd in another country then there's every chance that other country will expect (their equivalent of) CT. Then you have double tax issues. Much easier to just start a new company and close the UK one if that's an option.

[Clare@InTouch]

Hi,

I have had a look at Entrepreneur's Relief, and seems most IT contractor LTDs are qualified. Is it this simple?

If so it would be good news to me.

It's you personally who would be entitled, not the company. The company is closed down, possibly via a Members Voluntary Liquidation if you have over a certain amount, and any final money is distributed to you as capital rather than dividends. Capital gains can then be taxed at much lower rates than dividends would be.

Whether or not you need an MVL, and whether it's worth the extra professional fees, depends on how much capital you've got to withdraw.

[sy8111]

@Clare, thanks for your information.

[Maslins]

I'm perhaps biased, but would go along with Clare's suggestion.

If you've got <£25k capital in the company, a formal MVL won't be worthwhile as you can get the same tax treatment via a simple striking off process.

I'd use it as a good excuse to have a clean break, get some cash out tax efficiently, and start afresh elsewhere. Whilst it might technically be possible to get a company transferred, I imagine the legal/similar fees you'd pay to get it done properly would make it only worthwhile for the big corporates.