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The UK currently has a corporate tax rate of 20%. Ireland is a 12.5% on trading income, Malta is 35% but reducable to 5% in some circumstances, Lithuania is als

The UK currently has a corporate tax rate of 20%. Ireland is a 12.5% on trading income, Malta is 35% but reducable to 5% in some circumstances, Lithuania is also 5% for small companies, Estonia is 0% on undistributed profits.[1] Some research for a decent advisor in one of the countries you might consider and then ask them for advice. I found finding advice like this in the UK either difficult to obtain from a regular accountant, or the advisors I found were targetting the very wealthy. Ultimately I talked to three different people in the countries above and went with one of them to setup the Limited company for a small business. [1] https://en.m.wikipedia.org/wiki/Tax_rates_in_Europe https://en.m.wikipedia.org/wiki/Tax_rates_in_Europe

wfn 10y ago
Note re. LT, to form a Limited liability company in UK you don't need to have any shareholder capital; you do need the latter for forming an Ltd in Lithuania ("UAB"). There are other corporation types available but if you want limited liability in LT, you'll need to put in 2500 EUR.
- phillc73 10y ago
  That's a good point. However, keep in mind other EU jurisdictions like Germany and Austria require even more initial share capital, and also have generally higher base corporation tax rates.
brownedge 10y ago
Which country did you choose? And do you face doible taxation issues with the country where you live?
- phillc73 10y ago
  The tax situation is that the company's corporation tax will be paid in the country where it is registered. Although one does need to be a little careful also about where business is being conducted. If I pay myself an income (not dividends) from company funds, which would of course be paid out before corporation tax, then I would be liable for income tax on that in my country of residence. Income from dividends (paid to shareholders after corporation tax) is taxed differently in different jurisdictions.
caspg 10y ago
Did you use some service to set up a company, or did you do this by yourself? Was it possible to do online?
- phillc73 10y ago
  I used a service. I appreciated their advice and knowledge of the local environment. I recall that at least in Ireland there were some online services marketed at setting up this kind of thing.

wfn 10y ago

Note re. LT, to form a Limited liability company in UK you don't need to have any shareholder capital; you do need the latter for forming an Ltd in Lithuania ("UAB"). There are other corporation types available but if you want limited liability in LT, you'll need to put in 2500 EUR.

phillc73 10y ago
That's a good point. However, keep in mind other EU jurisdictions like Germany and Austria require even more initial share capital, and also have generally higher base corporation tax rates.

brownedge 10y ago

Which country did you choose? And do you face doible taxation issues with the country where you live?

phillc73 10y ago
The tax situation is that the company's corporation tax will be paid in the country where it is registered. Although one does need to be a little careful also about where business is being conducted. If I pay myself an income (not dividends) from company funds, which would of course be paid out before corporation tax, then I would be liable for income tax on that in my country of residence. Income from dividends (paid to shareholders after corporation tax) is taxed differently in different jurisdictions.

caspg 10y ago

Did you use some service to set up a company, or did you do this by yourself? Was it possible to do online?

phillc73 10y ago
I used a service. I appreciated their advice and knowledge of the local environment. I recall that at least in Ireland there were some online services marketed at setting up this kind of thing.