So, in simple terms, you do your business through an offshore company, but use a British company as a form of nominee, with most of the revenue going to the “Prinzipal” (which would be an offshore company). There are many occasions for which a British agency could be useful: – The British LLP generally does not have access to double taxation conventions. The British LLP must have at least two partners (members). It is essential to ensure that the Uk-based company is not a stable offshore company and thus continues to operate in the UK. If this were the case, the profits from this establishment could be taxed in the United Kingdom. As a general rule, a formal agreement is reached between the client and the British company, entitling the British company to a fee for the services it requests. All commercial transactions are carried out by the British company for and on behalf of the client. In England, a company wholly owned by an offshore company under UK law (type IBC) will be able to enter into and claim an agency contract allowing it to make up to 90% of its profits. They must therefore be able to demonstrate that the actual trade was carried out by the offshore company abroad and that the activities of the British company did not constitute a commercial activity of the United Kingdom on its behalf. One of the problems will be where the contracts will be signed. But even if contracts are concluded abroad, this is inconclusive with the British business of the British company.

Trade continues in the United Kingdom when there is significant economic activity in the United Kingdom that contributes to the realisation of profits. The British company could be used to provide customers on behalf of an offshore company in which customers do not wish to be directly linked to the offshore company. This regulation is legal and is due to the “Agency Act”, which governs agency contracts for the representation of foreign companies. (see here) Capital No contribution or proof of social capital is required. The British company can be used for billing purposes where, for example, it could deliver goods on behalf of an offshore company, receive payment in a bank account in its name and charge the money to the offshore company.