Is that setup legal over there? It is not in the EU countries I know about; the UK company would be seen as a defacto company in the country you actually reside

Is that setup legal over there? It is not in the EU countries I know about; the UK company would be seen as a defacto company in the country you actually reside and do the work (Poland for instance), unless; If you don't mind travelling then you can, very cheaply, pay very little to no tax being a small company. In many countries it is legal to do so.