Tax Structuring: Why You Need Professional Help

The tax structure of your company can have a major impact on your net profits at the end of the year. One of the many reasons why so many entrepreneurs prefer registering their companies in the United Kingdom is because it showcases a degree of respectability in the industry. If you are trading with other entities from all over the globe, the other entities will be more than willing to trade with you if your company is registered in the UK. However, there’s a downside to registering your company in the UK: the corporation tax stands at 20%-23%.

As a business owner, you will obviously want to minimise the corporation tax as much as possible in order to maximise your profits. One of the ways to do that is to restructure your company as an agent working on behalf of a principal that’s based overseas. As an agent, your company will be able to enter into negotiations with all other entities, except all of these negotiations will be carried out on behalf of the principal.

Simply put, you will be running your company through another offshore company. However, the company that was registered in the UK would act as a nominee, with a major part of the income going back to the principal. For instance, many people prefer using Gibraltar offshore companies, mainly because the rate of taxation is relatively low in Gibraltar. While this may seem simple enough, you will need to hire a professional firm in order to set up an offshore company. Here are a few ways in which a professional company can guide you.

Guidance and Assistance

This may seem like an ‘exploit’ to most people, but there are plenty of complications involved. For instance, the two companies, the principal and the agent, must operate at ‘arm’s length.’ This means that there should not be any undue benefits or favours exchanged between the two companies, such as a lower market rate. Often, companies acting as agents receive very low commission rates, which turns up a red flag for the corporate governance authorities. A professional company will be able to guide and assist you in how to set up your company so as to generate maximum benefits without breaching any laws or regulations.


Setting up an agency is difficult because you will have to register two companies, one in Gibraltar and the other in the UK. You will need a lot of supporting documentation in order to make sure that the companies are registered with all required paperwork. A trust group will be able to guide you regarding the laws of both the countries and you will also receive assistance regarding any specific requirements that you might have to meet. You will need to hire a reliable agency to help you out regarding different problems with registering and running your business. Make sure you find a reputable agency that has previously worked with clients in both these countries.

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