Is LTD company in UK good for affiliates?

[FreeSpins]

Hey,

We are now checking some options to relocate our bizz.. Is the UK's LTD company (aka limited) a good option? Is it legal there? Do you need any special certificates, licences, etc. from the local authorities to perform gambling marketing and earn money on it?

Any experience?
Threats?
Opportunities?
Tips?
Or..?

Thanks!

[mickyfu]

You don't need any licence or certificate to promote casinos in the UK. You do if you want to promote via AdWords / Facebook.

But then again, who knows what s×x×e the gambling commission will think of next, to squeeze some more money out of businesses with their legalised theft.

[FreeSpins]

You don't need any licence or certificate to promote casinos in the UK. You do if you want to promote via AdWords / Facebook.

But then again, who knows what s×x×e the gambling commission will think of next, to squeeze some more money out of businesses with their legalised theft.

OK, thanks for valuable info.

Btw, I have never heard about gambling licences for affiliates to promote casinos.. So, the Google/Facebook requirements sounds ridiculous... (like having licences for already licensed product).

[Sherlock]

It is everywhere even on this forum. You need licence in Romania and in NJ/USA for example.

[FreeSpins]

Any experience with the UK's tax authorities?

[FreeSpins]

Are there any issues with bank account in the UK? I mean account set-up, gambling-related payments, etc.

[nwalker]

Hey,

We are now checking some options to relocate our bizz.. Is the UK's LTD company (aka limited) a good option? Is it legal there? Do you need any special certificates, licences, etc. from the local authorities to perform gambling marketing and earn money on it?

Any experience?
Threats?
Opportunities?
Tips?
Or..?

Thanks!

Why are you thinking of setting up in the UK? It sounds like you're not based in the Uk, so why set a business up in an environment where taxes are high. Surely you'd be better off looking at somewhere like Malta?

[FreeSpins]

Why are you thinking of setting up in the UK? It sounds like you're not based in the Uk, so why set a business up in an environment where taxes are high. Surely you'd be better off looking at somewhere like Malta?

Yes, I'm from other EU country and looking for tax- and bank-friendly system for this activity. I consider the UK's LTD + Offshore.

The LTD + offshore structure allows for unlimited transfer of profit from LTD to offshore. In this way, we are able to effectively reduce the income tax, the maximum amount of which will be calculated from 5% of the profit left in LTD. The rest of the funds will be transferred to the offshore company. The principle is very simple: 95% of the profit is transferred to the offshore company and we only settle for 5% of the income that remained in LTD.

The physical flow of money looks as follows:


1. LTD generates a profit.
2. LTD company transfers 95% of profit to offshore
3. LTD LTD pays a tax of 5% of the profit left, i.e. realistically 1%.


In addition, the CEO of LTD is entitled to a GBP 11,500 tax-free amount that reduces the tax base with this amount.

And most importantly, the offshore company does not pay tax from the surplus due to the fact that the profit is achieved outside the country of its registered office.


OECD Model Tax Convention apply.

[RacingJim]

I don't understand how you will get round the 20% corp tax on the whole amount of profit generated?
i.e. step 2, transferring 95% of the profit to an offshore and then paying tax on only 5% of the actual profits. That's about as dodgy as it gets really.

Why would you do that when you could just set up in IOM/Malta etc and have low taxes without the stress of maybe getting investigated by the UK tax authorities for tax avoidance?

[Triple7]

LTD company transfers 95% of profit to offshore

You're going to give away 95% of your profit to some guy living in Belize? Or you're living in Belize and want to please the UK a bit to pay tax on 5% of your profits?

Or do you think it's just that simple that you open a PO-box company in Belize, transfer your profit over there and then not pay any tax?

[ddm]

set up a maltese subcompany.
with dual tax treaty agreement which is in place, you end up paying 5% corporation tax.
gg taxman

[Sherlock]

Are there any issues with bank account in the UK? I mean account set-up, gambling-related payments, etc.

You are asking 2 things here. UK company and UK bank account. Both are different cases.

The tax structure you are suggesting worked 6 years ago and before. Now if you live in EU, you are being taxed in EU, regardless of how many shell companies you set up.

In short either move out of EU or pay taxes there. Anything else is a breach of law. Even the EU bankers look at it now to be covered against the law. I guess it is doable somehow, but that is not something that people doing that would discuss on public forums and for free.

[FreeSpins]

Thanks for all comments. I see that Malta is the best option in EU. But, still, the question: Can we legally set up LTD company there (core activity: affiliate marketing for gambling industry) and run our busniess remotly (eg. from Slovakia) without any issues? I'm also asking about banks there since we heard that some banks make problem when they see gambling-related transactions. How does it look from the legal point of view? It is safe?

As for Malta, do you know any good affordable that helps in setting up such companies (+accounting, +domiciliary +nominee). What's the set-up fee? monthly costs? and year-end closing costs? Please share your experience.

[Jokerman99]

Simple answer is no you cannot.

Wherever the operations take place and the decisions are made is where the company will be deemed taxable. The Slovakian authorities would likely come after you. In order to take advantage of Malta's 5% tax rate you would need to move the business there, including those deemed to be the decision makers in the eyes of the tax authorities in your home country.

[Sherlock]

Some banks do the business, some do not. From those who do, all I asked wanted to do it with the Maltese company only.

Question if you will have no problems/issues makes no sense. Business is always full of problems. You are now trying to avoid taxes, so it means just more problems. Especially in Slovakia. You must be prepared to embrace the problems and defend yourself, even legally. It is obvious that no state wants to allow outflow of taxes through any way. You know how post-communist bureaucrats treat people or law (= they do not give a f... about it).

[Sherlock]

Simple answer is no you cannot.

Wherever the operations take place and the decisions are made is where the company will be deemed taxable. The Slovakian authorities would likely come after you. In order to take advantage of Malta's 5% tax rate you would need to move the business there, including those deemed to be the decision makers in the eyes of the tax authorities in your home country.

Livesport is another big Czechoslovakian company, they moved to Malta long time ago (but for sure the owners are not there physically). It is doable somehow, but the costs will be higher than expected and it is always walking on a thin ice.

This is not as much about Malta, but about Slovakia. If you know the right people there, you are in a better position. But never safe. If you want to be safe, go to 9 to 5 job. You can well have problems even if you pay all the taxes in Slovakia.

[Triple7]

Simple answer is no you cannot.

Wherever the operations take place and the decisions are made is where the company will be deemed taxable. The Slovakian authorities would likely come after you. In order to take advantage of Malta's 5% tax rate you would need to move the business there, including those deemed to be the decision makers in the eyes of the tax authorities in your home country.

You can set-up a company there legally. That's allowed in both Malta and Slovakia.

But... if you're running your business from Slovakia, the Slovakian tax department could consider it as a Slovakian company. I have no experience with the Slovakian tax authority, so difficult to say how they operate exactly.

Malta has a tax credit system. You pay 35% and you get 30% back. One of the conditions is that the dividend is paid to a foreign shareholder. This foreign entity needs to be shareholder of your Maltese ltd.

I'd consider to ask decent tax advice from a specialist. If you want to set-up an offshore company, hundreds of ltd-farms can help you, but once something is not correct and you'll enter in problems with the local tax authority you likely get roasted.

Another problem is the bank account. Most banks are not very willing to open bank accounts for Maltese ltd's in the gambling field. Even in Malta it was very difficult and many ltd's could just open at Satabank. I don't think BOV is going to open an account for a ltd ran by a guy living in Slovakia, leave alone banks outside Malta.

Set-up in Malta is something like 5-6k. Closing your company too. Annual costs depends on the services you require, but likely at least 1k a year. You'll have to open first the company. Perhaps to conclude afterwards that nobody wants to open a bank account for you.

Why not run a Slovakian company? Or move to Malta, if you like to live in a small island village.

[Sherlock]

ftfy

if you like to live in a huge overcrowded island village, where it takes hours to get from one side to another and the fastest way is on foot

[FreeSpins]

Residence of a Company Director

The Significance of Where a Company Director is Resident The residence of a person applying to be a company director is not usually significant. A director of a UK company can be a non UK resident and live anywhere in the world and there is no requirement for them to live in the UK during or after their appointment as company director. Directors are not Required to Visit the UK There is also no requirement for a proposed director to have visited the UK at any point in the past. In short, a person living for example, in Germany who has never been to the UK can be a director of a UK company. One of the few exemptions to this rule would be for example, where the person has a visa or work permit which prevents them from being a UK company director. When filling out Form AP01, the non UK director will (as would a person living in the UK) put down the normal residential address on the form. Visiting the UK to Open a Company Bank Account One of the few instances of where a director may need to visit the UK is where the company intends to open a UK bank account. Banks are required to comply with both UK and European money laundering provisions. In some cases a bank may require a company director to visit a UK branch, in other cases where the bank has a branch in the director's home country, the various money laundering and identification procedures may be satisfied by the director visiting this branch. Company Residence for Taxation Purposes Regarding the taxation, a company will be deemed to be subject to UK taxes (namely corporation tax) if it was incorporated in the UK. This rule applies irrespective of where the directors live or where key decisions affecting the business are taken.* In exceptional circumstances (undefined by Revenue and Customs), companies can submit a claim that they are not UK resident and therefore should not be subject to UK taxes. url: https://www.completeformations.co.uk..._director.html

*taking into account double-taxation treaties between the countries.

So, you cannot pay tax twice.. Only in the UK. The only obligation in my country would be reporting to the Tax Office, but not paying tax. Provided that you are not employed there, only act as director and shareholder with a director's salary.

[Sherlock]

You can pay tax twice. You can have taxes over 100% even. Anything that does not make sense is possible. Do not look at taxes, especially international, as a logical system that has some solution. You always walk on thin ice, you are never even close to be safe regardless what you do.

The more money you have the more you are in risk that the mafia, that is called state, will try to take the ransom from you.

I have seen many totally legit businesses to be ****** up by state employees who were just too active or had small dicks. I have also seen many people, including me in the past, who made a big money, reported nothing, paid 0 and they are just ok.

From my experience what you are trying to do is the most dangerous thing of all. You want to create some very complex structure from Slovakia/UK/offshore and you want to demand 1% effective rate. With that you want to openly go to Slovakian state and on the top of that you are maybe Slovakian citizen? I think Janosik hit your head with a stick during a trip to Fatra or something.