Market Options For A Uk Non-resident For Llc Formation With Bank Account

By Author: Atriumassociates
Total Articles: 17
Comment this article

Offshore Limited Liability Company ensures liability protection for its owners and partners. It is a flexible business structure that allows power and responsibility to be channelized within the organization.

An LLC allows tax neutral benefits owing to its multi-partner management. Hence, the burden of corporate taxation is equally distributed among its members and do not fall on an individual.
An LLC member operates in the same way as a shareholder in any company having flexible degrees of ownership and remuneration.
LLC is the best choice for any International joint venture business model as it allows maximum taxation benefits while offering the advantages of Incorporation.

 
Offshore LLC company formation v/s offshore incorporation:
 
For majority of businesses, an offshore LLC will be the best choice due to the following reasons:
 

Enables to hold IRA account outside US jurisdictions.
Enables to carry out personal investment activities and real estate in foreign countries.
Easy management and asset protection with investments in foreign trusts.
...
... Maximum privacy on confidential and sensitive data.
Beneficial for small businesses with yearly earnings of less than $100,000- $200,000.

 
Whereas, offshore incorporation is only good for:

Big businesses with net annual income greater than $100,000- $200,000.
When the owner of the business is a permanent US resident.
A joint venture operated with a non- US partner
UBIT blocker for IRA LLC operating offshore
Holding property in states like Panama which lack LLC statute
Investing for obtaining permanent residency in Panama

 
Available market options for a UK non-resident for LLC formation with bank account:
 
A large numbers of foreigners are opening companies in UK. However, opening a bank account may be difficult for a UK non-resident even after furnishing all necessary documents.
UK banks are far more conservative than US banks and take stringent measures for fraud protection. Acquiring a bank account with any registered address within the country may be difficult due to thorough scrutiny. A bank account may only be opened if you successfully prove UK residency by furnishing a home address.
 
The bank account opening procedure is often more cumbersome. Fortunately you can hire an agent to complete all formal processes for you. But you would have to come down for a face-to-face interview to verify the validity of submitted documents.
 
The following banks allow comparatively easy opening of account for UK non-nationals:
 

HSBC: A reputed bank operational across various parts of UK. They require non-resident director to visit UK branch and present a photo ID and address proof. They also need signing of bank mandate.
Lloyds Bank: This bank grants business bank account opening only when the owner lives in UK and also has to visit bank branch in person to complete formal obligations.
Barclays: They have the most relaxed regulations on offshore business account opening. However, all international business accounts must be created in their main branch, Isle of Man. Offshore account holders may enjoy the same advantages that of an onshore account, but their account will be designated as offshore. However, they require high initial deposit amount of 25,000-30,000, which may be waived under special circumstances.

 
Hence, by committing a hefty initial deposit amount, offering valid UK residential address prove and operating LLC with multiple partners or shareholders, you can gain the trust of your bank.
Usually, the time frame for account setup and activation is more. So, it is advisable to complete the entire procedure before you go about your company setup.