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Guys,
The other thing is it will be very hard to setup a "real" business bank account in the UK if you are not a UK or EU resident and have little or no capital to setup.
To me it's not. You're asking for free help, and then intentionally throwing up hurdles for those who might want to try to help. There is a reason paid consultants exist -- yes, even in your country -- to answer such questions without you having to reveal anything to a forum full of strangers. Follow the correct chain of consultants and you shall be enlightened
"The term 'double taxation' is additionally used, particularly in the USA, to refer to the fact that corporate profits are taxed and the shareholders of the corporation are (usually) subject to personal taxation when they receive dividends or distributions of those profits. "
http://en.wikipedia.org/wiki/Double_taxation
You just got wiki'ed.
I know it can also happen over border lines ... but this is what I meant.
I think WHT is a better forum for this kind of stuff instead of asking a bunch of kids who barely passed secondary economics.
lol, this brought smile on my face
There's a reason why not to use Wikipedia for academic or legal/financial purposes. ;-) Double taxation is a legal term when the same subject is involved in taxation. The case you mentioned, however, describes two different subjects being taxed, the company and the private person. This is economic "double taxation", but not legal double taxation. The latter is the crucial point when dealing with financial administrations.
Subject 1
Owns Monsters Inc. - Pays corporate tax.
Works at Monsters Inc. - Pays income tax.
So this is Double Taxation.
Yes but corps are considered their own entity rather than any other entity type. It only sucks when its 1 director. They continue to exist on their own. When you are the principal of the corp down the road you will have a ceo (could be you) and a board.. this cycled continues forever unless the principal director dissolves it before its a fully developed corporation with a executive staff and board, once at that point the tax rules make more sense.
Not making a argument rather than just expressing my feelings about it, I totally am in the same boat on the tax issue as a young c class.
Economic "double taxation" yes. But not legal. Corporations are their own entity (eg. legal subject). So Your case describes two different subjects (natural person and legal person) that have to pay tax. This is not what legal double taxation is.
What @nabo said. If you are effectively a "sole proprietor", there are much more tax-efficient structures around than a true corp. If you are Warren Buffett, yes, you are "double-taxed", but you own such a shitload of stock that the -20% capital gains "discount" makes up for it many times over
There are companies or 'brokers' which will assist you incorporating overseas, or lawyers etc.
However, you will still need a way to transfer funds and that means having a local bank account in that country. This isn't necessarily some thing straight forward and banks these days require you to physically be there with adequate ID before opening a bank account.
Some pre-requisites for this are to prove you actually have a physical address: That means utility bills over a period of time (3 months) under your name, brick and mortar building (not a virtual office) etc.
All the above costs money. If you really want to save money, start locally in your country first (or move). You're not really going to get out of paying tax, especially when you're starting off.
Good luck.