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Registering in the UK worth it?

Discussion in 'Dropshipping & Wholesale Hookups' started by Nowrid Ahsan, Mar 24, 2017.

  1. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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    I'm from a country where paypal, stripe and the other major payment processors don't work. I found that registering my company in the UK is fairly cheaper compared to the US. Registering the company in the UK comes with the registration in 2 days, hard copy of the docs, registered address in London and a business bank account for £46 and I can get a VAT number later on for about £55. Should I register in the UK even though my main targeted area is the US (UK is 2nd on the list)?
     
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  2. KTiwari

    KTiwari Registered Member

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    Once you get the merchant account registered in the UK, you will get a payment processor from the US. It's piece of cake. This is a good route for an overseas bank account. The downside, of course is tax.
     
  3. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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    I only need a tax id once I reach 80,000 in sales but at least I'll have no problem receiving payments
     
  4. Sephrata

    Sephrata Senior Member

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    Nope. If you start a company in the UK, you have to register with HMRC for corporation tax and then you pay 20% tax on your profit.
     
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  5. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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  6. Sephrata

    Sephrata Senior Member

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    That is VAT, not corporation tax. Two big differences.

    Be very careful starting a UK company. You have a lot of responsibilities and costs are attached with this.
     
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  7. KTiwari

    KTiwari Registered Member

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    +1 to this. I forgot to add that if you are registering as 'international business' it will cost more. If you know a cheaper deal, I am listening :)

    Tax will not be a big problem for you since you can open an offshore bank account with UK company registration. Depending on the service you choose, it is expensive or cheap. But it is not as easy as running a Cyprus company. UK Company + IBAN bank account is very easy. These bank accounts with LP or Payoneer is free.
     
  8. MisterF

    MisterF Jr. VIP Jr. VIP

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    The £80k threshold is for VAT currently at 20% for Vatable products.
    On top of that will be your corporation tax on your business profits.

    Although collected by the 'taxman' these are both totally different types of tax.
     
  9. cooper1210

    cooper1210 Regular Member

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    LOL @ Tax free income at £80,000
     
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  10. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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    mate can you PM me want to ask a couple of stuff
     
  11. Duffers5000

    Duffers5000 Elite Member

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    You also wont get a business bank account too easily without being a resident. I know the company formation websites offer that as part of the package but its not that easy.
     
  12. lineager

    lineager BANNED BANNED

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    If you use stripe and register a UK address they will probably want a UK bank attached.
     
  13. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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    I am doing it through a company formation company, lets see how it goes
     
  14. Sephrata

    Sephrata Senior Member

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    Much better, in my view, to set up a single-member LLC in the U.S. It's cheaper and there are less regulatory requirements.

    The U.K. is tightening up on non-resident companies. It's a very complex area of taxation and it is highly advisable to seek professional advice.
     
  15. Nowrid Ahsan

    Nowrid Ahsan Regular Member

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    The cheapest single member LLC is around $500 (too much for me atm)
     
  16. Sephrata

    Sephrata Senior Member

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    As soon as a non-resident U.K. company has a physical address in the U.K., then it is highly likely HMRC will regard that as a permanent establishment and as such, the company will then be liable for corporation tax on the worldwide profits.
     
  17. Sephrata

    Sephrata Senior Member

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    Look at Colorado. It's $50, you can do it yourself online. There are cheap registered agents for $40 a year also.

    I should add though, getting a U.S. bank account is not so easy. Normally you will need to be physically present in the U.S. to get this set up, although I gather there are still ways around this.
     
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  18. KTiwari

    KTiwari Registered Member

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    Didn't know this. Let me give this baby a try. Thanks man.
     
  19. seohug

    seohug Jr. VIP Jr. VIP

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    You will need a proof of your address in the UK to open a bank account and be physically present. For the company address, you can use the accountant's to save money and let them deal with paperwork and letters from HMRC.
     
  20. KTiwari

    KTiwari Registered Member

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    Care to explain this OneLiner Man??