Adding a foreign shareholder Adding a foreign shareholder
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  1. #1

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    Default Adding a foreign shareholder

    Wondering if I have a company that makes around 40k a year, I have 50% share and a 50% share foreign shareholder who does not reside in uk or have a uk passport. Is it okay for that person to take 50% as dividends without doing any work in the company?

    The foreign person is not a family member, a spouse, or ex. Happy to pay ALL taxes and not avoid anything. Your advice is greatly appreciated.

  2. #2

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    yes

    Residency/work is immaterial to whether someone can be a shareholder.
    There might be other issues though.
    Is this person your spouse? If not then you might have a problem.
    Can you access the money yourself once it's been offshored? You might have a problem if that is the case as well.

    Perhaps you should explain what it is you're trying to achieve and then we can help better.
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    Is this the international version of Pscont?
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    Quote Originally Posted by Lance View Post
    Perhaps you should explain what it is you're trying to achieve and then we can help better.
    Tax evasion.
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    Quote Originally Posted by Lance View Post
    yes

    Residency/work is immaterial to whether someone can be a shareholder.
    There might be other issues though.
    Is this person your spouse? If not then you might have a problem.
    Can you access the money yourself once it's been offshored? You might have a problem if that is the case as well.

    Perhaps you should explain what it is you're trying to achieve and then we can help better.
    Thanks! the person is not my spouse, family member, or remotely related to me, nor are they in any other business with me, or in any business remotely connected or benefiting directly or indirectly, they don't have another business or company.

    I cannot access the money at all in any way directly, indirectly, remotely, etc, and cannot gain anything from the use of that money in any other way

    My goal is to have a shareholder who can legally withdraw dividends without doing anything even slightly dodgy or shady whatsoever

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    Quote Originally Posted by northernladuk View Post
    Tax evasion.
    no, don't want to do any tax evasion at all, happy to pay ALL taxes! just want to have a shareholder who can take dividends and want them to receive it without thinking we are doing something wrong, hate the feeling that we are not sure so rather be confident that we are doing nothing wrong!

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    Quote Originally Posted by northernladuk View Post
    Is this the international version of Pscont?
    Sorry, don't know what that is, and yes I did google it

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    Quote Originally Posted by kazh View Post
    Thanks! the person is not my spouse, family member, or remotely related to me, nor are they in any other business with me, or in any business remotely connected or benefiting directly or indirectly, they don't have another business or company.

    I cannot access the money at all in any way directly, indirectly, remotely, etc, and cannot gain anything from the use of that money in any other way

    My goal is to have a shareholder who can legally withdraw dividends without doing anything even slightly dodgy or shady whatsoever
    So what does your business gain from having this additional shareholder, taking funds out of the business? Are they putting in lots of capital or providing expertise that your company needs to grow?

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    Quote Originally Posted by kazh View Post
    no, don't want to do any tax evasion at all, happy to pay ALL taxes! just want to have a shareholder who can take dividends and want them to receive it without thinking we are doing something wrong, hate the feeling that we are not sure so rather be confident that we are doing nothing wrong!
    Why do you want to give your money away like that? Withdrawing money via dividends comes with tax benefits, to gain an unfair advantage using dividends incorrectly to meet an end which pays less tax is evasion. Like all proceeds, they exist legally but abuse them and they become a problem.
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    Quote Originally Posted by kazh View Post
    My goal is to have a shareholder who can legally withdraw dividends without doing anything even slightly dodgy or shady whatsoever
    Without saying WHY you want to do this, and on what basis, no-one can answer your question. The WHAT you are doing could either be classed as avoidance (legal) or evasion (illegal) depending on the WHY.

    So, what is the bigger picture here? Does the person already own the shares? How is/was the transfer of shares done? Was it a gift? Did they pay for them? Were the shares in exchange for something else (a non-financial transaction)?
    Last edited by Paralytic; 29th October 2020 at 15:05.

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