Bankruptcy and foreign company

kation

Hi All,

I was made BR earlier this year, I'm considering my options and wanted to ask a question: Could I do this?:

Form a foreign (non-EU) company I would be the sole owner, the company would have no assets to begin with and a friend would loan the start-up capital.
Work for that (non-EU) company in either the UK or the non-EU state, as either an employee or [more likely] freelance (bill my services to it), the amount that I draw (i.e. salary) being adjusted to be below the amount that would trigger an IPA (Income less than SoA).

Would the OR be legally entitled to anything from the new company? (The new company wouldn't be worth anything on-paper until after my AD, although it would have generated a healthy 1st year balance that would should up in the accounts after my ED).

I should point out that I'm trying to gauge what is legal, and not necessarily what is moral and I don't have any money to pay for advice, but would rather not sit on benefits until the ED.

Thanks

debtinfo

it would be ilegal for you to form a foreign company if it was to have assets or do any business in the uk, or to instruct anyone to form that company on your behalf, even if you could do you know all the tax laws and requirements for a company in that country

patman99

How long before your ED ?.

It is legal to set-up a company outside UK control (Tescos own a Caymen Island registered holding company that owns 80% of their UK infrastructure, and to whom rent on said buildings is paid, thus avoiding paying £480m p/a in UK Tax). You would still need to pay UK tax on your earnings and operational profits.

Unless you are a large company with loads of rentable assets, then it is much simpler to wait until you are discharged, then set up a proper UK company.

kation

Thanks. AD would be in January 2013.

The problem is that I have potential to do some well paid, but sporadic work in the UK, and I'm very concerned that what the OR will assume is 'surplus' is retained cash, for operating purposes.

My BR partially stems from not having "deep enough roots" cash-flow wise AND I'll be damned if I'm going to do that again - but to have the OR take out all the cash every 3-6 months and risk being able to deliver on my obligations is not an option.