A UK citizen opening a foreign company

Let’s say you wanted to open a company in a foreign country like Chile for example and let’s say the corporation tax rate happens to be lower than in the UK (19% in the case of an LLC).

Is this perfectly legal and ok to do? How is this treated when it comes to tax treatment? You pay the foreign corp tax and then pay the difference to the UK?


Yes, in most cases, when you have a foreign entity you owned and its register elsewhere your residential country , you first should declare this entity and tax treaty if its in place , then regular corporate tax in the domicile country and while you reporting the foreign entity or personal tax report based on the tax treaty you pay the gap.

However, to avoid any issues with tax authorities the annual arrangement better to do with local accountant/tax advisory in your home country

Good luck


Hey ! Not so long ago I had the same question and on the forum I was advised to seek advice from https://www.wis-international.com/
Good luck and have a nice day!


This is correct.

Also it is important to notice that Latin American countries have several hidden taxes so better seek professional advise from where you want to setup shop.


If a company is managed from the UK it is subject to UK taxation regardless of registration, so if the directors are UK resident, if board meetings occur in the UK, if decisions are taken in the UK you will be taxed in the UK.

Otherwise every single UK company would reregister in the Caymen Islands and pay no tax! Instead of just the clever ones :rofl: