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anonguest

Registering A Limited Company 'overseas'

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Saw this posted on someones Facebook page, who is in the process of going self employed/setting up his own limited company.......

"Whilst on one hand the government talks about helping people start businesses, and indeed, this is a growing sector, on the other hand it's a legal minefield. The new laws on informing HMRC before you make any payments is onerous and expensive, the new requirements to force all your employees (even yourself) to have a pension, and to register it (even if they opt out) and to top up the pension is expensive and time consuming, plus, 1 in 3 occupations now legally demands a certificate of some nature. Add in all the H&S regulations, and all kinds of new legislation, and it really puts off ever employing someone.
Even the job centre admitted to me that many don't bother to employ any more, but take people on as self-employed, due to all the new regulations designed to protect employee rights. Quite self-defeating, and most depressing for someone like me, who had hoped to hire soon..."

I didn't realise things were that bad/onerous for someone wanting to start their own company?

The first thing that came to mind was....whay not register your company in a conveneient 'overseas' jurisdiction such as, say, Channel Islands? NOT to avoid tax or such like, but just to avoid having to comply with large amounts of the regulatory hoo hah he refers to.

I have been led to understand that registering a company in, say, channel islands is about £1000 or thereabouts? Compared with less than £50 in the UK, online with Companies House?

Therein lies the 'trap'?! the UK Govt make it very temptingly easy and cheap to register a company in the UK - but then you have to put up with all the garbage alluded to above. Surely the one off higher start-up/registration expenses in, say, channel islands would be very quickly offset by the savings of time and money (and stress!) by not having to comply with UK regulations? No?

And IF this is indeed the case then HMRC, etc could do nothing about it - so long as they get the tax dues to them......

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The first thing that came to mind was....whay not register your company in a conveneient 'overseas' jurisdiction such as, say, Channel Islands? NOT to avoid tax or such like, but just to avoid having to comply with large amounts of the regulatory hoo hah he refers to.

If you are trading in the UK or employing people here you're going to have to comply with the red tape regardless of where your company is registered.

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I've got my own very small consultancy business. It really is a piece of cake setting up and running a limited company in the UK, and it's very cheap.The government online systems are pretty good in my opinion. Doing VAT and PAYE is very simple and HMRC provide everything you need. Need an accountant to do annual accounts and return (about £200). I'm sure it gets more onerous if you're selling food to the public or digging holes, but I doubt there are many countries in which it is more straightforward than here (and I've run businesses in a few of them).

The whole red tape argument annoys me as it's usually used by people who assume there's loads of red tape and have little experience of operating small businesses.

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I've got my own very small consultancy business. It really is a piece of cake setting up and running a limited company in the UK, and it's very cheap.The government online systems are pretty good in my opinion. Doing VAT and PAYE is very simple and HMRC provide everything you need. Need an accountant to do annual accounts and return (about £200). I'm sure it gets more onerous if you're selling food to the public or digging holes, but I doubt there are many countries in which it is more straightforward than here (and I've run businesses in a few of them).

The whole red tape argument annoys me as it's usually used by people who assume there's loads of red tape and have little experience of operating small businesses.

Reassuring to hear but you make it sound like all those comments that chap made about having so many things to comply with such as, for example, pensions....were not accurate/factually correct?

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If you are trading in the UK or employing people here you're going to have to comply with the red tape regardless of where your company is registered.

I was assuming that one way around this would be for one to treat anyone they employ as themselves self employed consultants/contractors (i.e effectively require the 'employee' to be repsonsible for their own tax, etc)

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I've got my own very small consultancy business. It really is a piece of cake setting up and running a limited company in the UK, and it's very cheap.The government online systems are pretty good in my opinion. Doing VAT and PAYE is very simple and HMRC provide everything you need. Need an accountant to do annual accounts and return (about £200). I'm sure it gets more onerous if you're selling food to the public or digging holes, but I doubt there are many countries in which it is more straightforward than here (and I've run businesses in a few of them).

The whole red tape argument annoys me as it's usually used by people who assume there's loads of red tape and have little experience of operating small businesses.

I really don't agree. For starters education levels will make a massive difference. Also employing people and having premises, public access to them, physical products and waste all increases bureaucracy and regulation enormously.

My idea of straightforward, given where technology and automation is now, would be a business account for sales and business expenditure and a personal account for private expenditure. When you make private expenditure you just transfer money from the business to the personal account and literally that is all you do. No folders full of bits of paper, calculators and number-crunching and most of all no fear of getting it wrong.

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I was assuming that one way around this would be for one to treat anyone they employ as themselves self employed consultants/contractors (i.e effectively require the 'employee' to be repsonsible for their own tax, etc)

My long held suspicion has been that ultimately everyone is going self-employed and doesn't realise it yet and really I only see more and more evidence to suggest this is going to be the case.

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