👀 𝐄𝐯𝐞𝐫 𝐬𝐞𝐭 𝐮𝐩 𝐚 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐬𝐮𝐛𝐬𝐢𝐝𝐢𝐚𝐫𝐲 𝐚𝐧𝐝 𝐭𝐡𝐨𝐮𝐠𝐡𝐭 – ““𝑾𝒆’𝒓𝒆 𝒔𝒂𝒇𝒆, 𝒊𝒕’𝒔 𝒂𝒃𝒓𝒐𝒂𝒅, 𝑰𝒏𝒅𝒊𝒂 𝒘𝒐𝒏’𝒕 𝒕𝒂𝒙 𝒖𝒔”?
One of our clients did exactly that.
An Indian parent incorporated a 𝐔𝐊 𝐬𝐮𝐛𝐬𝐢𝐝𝐢𝐚𝐫𝐲 to expand globally. Smart move.
𝑩𝒖𝒕 𝒉𝒆𝒓𝒆’𝒔 𝒕𝒉𝒆 𝒄𝒂𝒕𝒄𝒉 👇
Two of the subsidiary’s directors were 𝐬𝐢𝐭𝐭𝐢𝐧𝐠 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚… 𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐦𝐚𝐤𝐢𝐧𝐠 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬.
At the same time, the UK entity started 𝐝𝐢𝐫𝐞𝐜𝐭𝐥𝐲 𝐞𝐧𝐠𝐚𝐠𝐢𝐧𝐠 𝐈𝐧𝐝𝐢𝐚𝐧 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐧𝐭𝐬.

𝑺𝒐𝒖𝒏𝒅𝒔 𝒉𝒂𝒓𝒎𝒍𝒆𝒔𝒔, 𝒓𝒊𝒈𝒉𝒕?
𝐖𝐫𝐨𝐧𝐠. This setup could easily trigger:
⚠️ 𝐏𝐎𝐄𝐌 → Subsidiary treated as 𝘐𝘯𝘥𝘪𝘢𝘯 𝘵𝘢𝘹 𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵, taxed on global income.
⚠️ 𝐏𝐄 𝐫𝐢𝐬𝐤 → Consultants seen as 𝘲𝘶𝘢𝘴𝘪-𝘦𝘮𝘱𝘭𝘰𝘺𝘦𝘦𝘴.
⚠️ 𝐏𝐀𝐍/𝐓𝐀𝐍 & 𝐆𝐒𝐓 →Full-blown 𝘤𝘰𝘮𝘱𝘭𝘪𝘢𝘯𝘤𝘦 𝘯𝘪𝘨𝘩𝘵𝘮𝘢𝘳𝘦𝘴.

😨 𝘐𝘮𝘢𝘨𝘪𝘯𝘦 𝘵𝘩𝘪𝘯𝘬𝘪𝘯𝘨 𝘺𝘰𝘶’𝘳𝘦 𝘣𝘶𝘪𝘭𝘥𝘪𝘯𝘨 𝘢 𝘨𝘭𝘰𝘣𝘢𝘭 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴, 𝘰𝘯𝘭𝘺 𝘵𝘰 𝘣𝘦 𝘵𝘢𝘹𝘦𝘥 𝘪𝘯 𝘵𝘸𝘰 𝘤𝘰𝘶𝘯𝘵𝘳𝘪𝘦𝘴 𝘣𝘦𝘤𝘢𝘶𝘴𝘦 𝘰𝘧 𝘮𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵 𝘱𝘢𝘵𝘵𝘦𝘳𝘯𝘴 𝘢𝘯𝘥 𝘤𝘰𝘯𝘴𝘶𝘭𝘵𝘢𝘯𝘵 𝘤𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘴.

✨ 𝐇𝐞𝐫𝐞’𝐬 𝐡𝐨𝐰 𝐰𝐞 𝐡𝐞𝐥𝐩𝐞𝐝
✔️Restructured 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧-𝐦𝐚𝐤𝐢𝐧𝐠 so “control” clearly sat in the UK.
✔️Documented consultants as 𝐢𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥𝐬, not dependent agents.
✔️Clarified 𝐆𝐒𝐓 𝐚𝐧𝐝 𝐓𝐃𝐒 𝐛𝐨𝐮𝐧𝐝𝐚𝐫𝐢𝐞𝐬 to avoid unnecessary registrations.

𝐑𝐞𝐬𝐮𝐥𝐭? ✅ The client kept their 𝐔𝐊 𝐭𝐚𝐱 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐜𝐲 𝐢𝐧𝐭𝐚𝐜𝐭, avoided 𝐝𝐮𝐚𝐥 𝐭𝐚𝐱𝐚𝐭𝐢𝐨𝐧, and had a crystal-clear 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐦𝐚𝐩.

👉 𝐈𝐟 𝐲𝐨𝐮’𝐫𝐞 𝐚 𝐂𝐀/𝐂𝐏𝐀 𝐨𝐫 𝐚 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐰𝐧𝐞𝐫 𝐦𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐜𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬, 𝐫𝐞𝐦𝐞𝐦𝐛𝐞𝐫:
𝘐𝘵’𝘴 𝘯𝘰𝘵 𝘢𝘣𝘰𝘶𝘵 𝘸𝘩𝘦𝘳𝘦 𝘵𝘩𝘦 𝘤𝘰𝘮𝘱𝘢𝘯𝘺 𝘪𝘴 𝘳𝘦𝘨𝘪𝘴𝘵𝘦𝘳𝘦𝘥 – 𝘪𝘵’𝘴 𝘢𝘣𝘰𝘶𝘵 𝘸𝘩𝘦𝘳𝘦 𝘵𝘩𝘦 𝘳𝘦𝘢𝘭 𝘥𝘦𝘤𝘪𝘴𝘪𝘰𝘯𝘴 𝘢𝘳𝘦 𝘮𝘢𝘥𝘦.

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