Sunday, 30 December 2012

What is a UK Agency Company?

UK Agency Companies

A UK Agency Company is one that trades as an agent (or nominee) on behalf of another party, its principal. This relationship between the agent and the principal is a contractual one, governed by an agency agreement that the parties would enter into on a private basis.


Normally the Agency Company will act as an undisclosed agent, meaning that it enters into all contracts in its own name, bank accounts will be opened and operated in its own name, and correspondence and other communications with vendors and purchasers or with the recipients of services will be in the name of the Agent. However, all of these activities will be carried on under the instruction of and for the account of the Principal. The nominee is able to do nothing without the consent of the Principal.

In return for the services provided by the nominee, the Principal agrees to pay a fee which may be stipulated as a fixed fee or as a percentage of the income generated by the Principal through the Agent’s intermediation. Where the Principal and the Agent are under common control, it is important to establish such a fee at a commercial level, bearing in mind the limited nature of the Agent’s activities and the fact that it is able to offload on to the Principal any risk which it undertakes in the course of its trading activities by disclosing to any creditor or other claimant the nature of its relationship with the principal.

 

Any profit made by the Agent out of the fee which it receives from the Principal will be subject to UK corporation tax. However, provided the Agent is not regarded as ‘trading in the UK’ on behalf of its Principal, then the profits of the Principal are free of UK corporation tax. Careful management of the UK Agency company is required to ensure that there is no such ‘trading in the UK’ and in particular it is a useful precaution in this type of arrangement that the directors of the nominee should be resident outside of the UK  (they  may  even  be  the  same  persons  who  are  directors  of  the  principal). Furthermore, all the Agent’s services should be provided outside the UK. This would include the execution of all agreements and trading contracts. However, it is still possible to have; for example, UK directors that would do some work for the Agent provided that the extent of their activities would not constitute ‘trading in the UK’.

The Agent should also avoid deriving any non-trading UK source income (e.g. bank interest). It should also generally avoid owning UK assets.






Winston Wambua

International Offshore Specialist
 
For more information please contact me on

Mobile +971553350517

Email: winstonk@live.com
 
Skype: Winston.Wambua






 

Thursday, 27 December 2012

A registered shareholder and a nominee shareholder, what is the difference between ?



A registered shareholder is when the beneficial (real) owner records his/her name on the share certificate and in the Register of Shares as the owner of the allotted shares.

A nominee shareholder is when the beneficial owner chooses not to have his/her name on the share certificate or in the share register; few registered agent supply a third party to be the nominee for the real owner. The nominee appears on the certificate and in the register, in return the nominee signs a Declaration of Trust to the beneficial owner giving up any right to exercise any powers over the shares including voting rights or the right to sell or transfer these shares.

The nominee shareholder is used where the Companies Registry may be open to public scrutiny or if the owner requires a deeper sense of privacy.


Winston Wambua

International Offshore Specialist
 
For more information please contact me on

Mobile +971553350517

Email: winstonk@live.com
 
Skype: Winston.Wambua
 

Wednesday, 26 December 2012

Offshore company uses:-



As most other companies, an offshore company may enter into contracts, open bank accounts, purchase and sell various products and services, own property. A typical offshore entity, also known as an international business company (or an offshore IBC) does not pay taxes in its home jurisdiction. At the same time, it must also operate outside of the country of incorporation. A typical IBC is effectively a corporation with a limited liability. This liability is limited only by company’s shares. Shares are owned by one or more shareholders while the company is managed by director(s).”

 

Offshore incorporation can be carried out in a numeral of jurisdictions, including UAE, BVI, Belize, Seychelles, Anguilla, Panama, Nevis etc. The main decision criteria are price, reputation of the jurisdiction and time to incorporate. For instance, an offshore BVI company is the most popular among offshore entities, highly regarded by incorporators and business owners alike. An alternative would be a Seychelles company, which is the most reasonably priced among popular offshore jurisdictions. Belize IBC is a practical balance between price, reputation and proximity to fairly developed banking system of Belize.

Winston Wambua

International Offshore Specialist
 
For more information please contact me on

Mobile +971553350517

Email: winstonk@live.com
 
Skype: Winston.Wambua



 

Monday, 5 November 2012

Dubai Offshore Specialist

Definition of an Offshore Company or IBC
An Offshore company, international business company or international business corporation (IBC) is an offshore company formed under the laws of some jurisdictions as a tax-free company which is not allowed to engage in business within the jurisdiction it is incorporated in. IBCs are offshore companies that are most commonly used for offshore banking, to conduct international trade, investment activities, to offer professional services and for asset protection.

Winston Wambua

International Offshore Specialist
 
For more information please contact me on

Mobile +971553350517

Email: winstonk@live.com
 
Skype: Winston.Wambua