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A poker company I worked at created a second company off shore and it licensed the poker software from the UK registered one or some such shenanigans. You defi
by dazzawazza 18y ago
A poker company I worked at created a second company off shore and it licensed the poker software from the UK registered one or some such shenanigans.
You definitely need a good lawyer that does this sort of thing. There are a lot of complications (in the UK at least) for share holders and their tax liabilities. A good lawyer needs to structure the company in such a way as to make it as simple as possible.
There are overheads. Host territories require 1 or more people to be employed within the host state for full incorporation. The more dodgy the place, the more reliable people cost. If you get it wrong they walk away with all your money and the host country doesn't really care.
To be fair the the poker company PKR.com incorporated in Guernsey (small island of the cost of france) and AFAIK it's all gone well for them so it can work. The thing is they see millions of dollars a day going through their account so it's worth it. They are a very legit Poker company and DO pay taxes in Guernsey but none to the UK government which are at a higher rate.
You definitely need a specialist lawyer. It's a moving goal post as countries change laws to try to stop this sort of thing. As goal posts move lawyers costs add up. You are looking at legal costs in the 25-50 thousand uk pounds (obviously I wasn't privy to the exact costs at PKR but I remember seeing the bosses face when the legal bills came in!).
Good luck.
- swombat 18y agoIn terms of tax liability, afaik, if you control the company from the UK and you take money in and/or pay money out in the UK, you are subject to UK tax law, even if you're incorporated in Belize or something.
- dazzawazza 18y agoThat matches my understanding. That's why PKR (the money side) is a seperate company from PKR (the development/services) side. One hires the other to do work. I'm sure this is an over simplification of how it really works but that's how it was explained to me. Anyway as the development company doesn't get much more then the development/support costs so doesn't pay much in taxes.