Great Britain or the United Kingdom of Great Britain and Northern Ireland, is an island nation in northwestern Europe.
The UK is considered a tax haven because of the possibility of trade with its former colonies, in which there is zero income tax.
Official language: English
Currency: British Pound Sterling - GBP
Description and benefits of British jurisdiction
- High international prestige of British companies.
- The most common legal form of an English company is called LTD (similar to the Czech s. r. o.).
- Director of every company must be at least one natural person, who may also be a non-resident.
- Shareholders may be natural persons or legal entities, as well as non-residents.
- The business register is publicly accessible.
- Accounting is required.
- There is an obligation to submit to the UK tax office annual accounts, balance sheets at the end of the financial year and the profit and loss statement, possibly commented by an auditor registered in the UK.
- An Annual Report is required.
- Income tax of the British offshore company depends on the amount of profit of the respective company, usually it is around 20%.
International Convention against money laundering and terrorist financing
The UK has signed these agreements. The practical importance of these agreements for the company owner is mainly in the fact that, in the case of suspected money laundering or financing of terrorism by the British company, its registration agent may provide personal data of persons participating in the company (in case of nominee services, beneficiary owners of the offshore company) and the basic description of its operations to higher authorities that may forward the case even to the Czech Republic.
Avoidance of double taxation agreement (DTA) with the Czech Republic
This contract is concluded. Direct payments from the Czech Republic to UK are subject to withholding taxes only in cases when the international treaty states otherwise. UK offshore company are, in cases defined by the international treaty, suitable for direct selling of goods or services to the Czech Republic. Agreement for the avoidance of double taxation between UK and the Czech Republic is a very broad and convenient options for tax optimization.
Under this agreement, the exchange of tax relevant information between the two countries - Czech Republic and UK - is carried out.
Agreement on the exchange of tax information with the Czech Republic
This agreement is not concluded.
Convention on Mutual Administrative Assistance in Tax Matters
It is concluded - the UK is a signatory.
Convention for the avoidance of double taxation with other tax havens
The United Kingdom has concluded agreements for the avoidance of double taxation with other tax havens, especially with its former colonies. Due to this fact it is possible to partially transfer the tax liability from England to a tax haven where there is zero income tax.
The most common use of British company
- Holding (parent company) of another, for example Czech company, for the purpose of anonymity of property ownership and higher prestige.
- Trade in goods and services.
Establishing an offshore company in the UK