Advice on the need for a foreign subsidiary


2

We'd like to startup a company that is seen as a UK company and be governed by UK laws, including Privacy laws. However, all of our operations, management and control will reside in Canada at least for the first two years, but will hopefully be brought to the UK thereafter. There're only the two of us (the founders).

Would it be a good idea to register a UK company which wholly owns a Canadian Ltd? This way, could all of our letterheads, communication, legal terms, etc. be under the UK company? Perhaps the founders could be employed as Directors in both companies?

Any advice will be appreciated.

Thanks

Founder Foreign Company Tax Subsidiary

asked Jan 29 '13 at 06:34
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Kate
99 points

3 Answers


2

It is the law of land that always applies (and takes precedence in case of a treaty with another country). Period. If you want to be governed by UK laws only, your company should be limited to UK only. If you are doing business in Canada and have presence there, Canadian laws and only Canadian laws will apply there. If you register a UK company that wholly owns the Canadian Ltd, the canadian company will be subject to Canadian laws, there is no way to avoid it. Hope this helps. There could be certain work-arounds for some issues, but for more specific answer you have to provide details as to why do you want to avoid Canadian laws?

answered Feb 5 '13 at 17:09
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Royal1122
252 points

1

I have to wonder why you want to make life so complicated?

It is trivial to create a UK Ltd company, but surely a Canadian subsidiary would be governed by Canadian law. You'd have to check with a local lawyer, but I doubt UK law overrides Canadian law in the circumstances you describe.

answered Feb 1 '13 at 03:29
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Steve Jones
3,239 points

0

i would advice you not to register under any company,it takes time but you do the registration for your own company.As you both are the founders then why you want to register you company under other company, as you both have decided to follow the UK law, then go it.

answered Feb 6 '13 at 18:58
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Luis Mier
1 point
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