Client has created a Company with parents as shareholders

Client has created a Company with parents as...

Didn't find your answer?


The two Companies are doing similar activities but one is trading through an online platform. This is the new Company and the client has come to me and announced he has done this and made his South African parents Shareholder/Directors so that they can have some income. I have advised him that this arrangement will fall foul of the settlements legislation and that he may be treated as receiving the income himself.  I have also done a bit of searching just to check if there is any furher constructive advice I can give on dealing with this but I wonder if anyone on here has any thoughts.  He did ask if it is possible then to close the UK company he's set up and set up an offshore company instead. I have told him that I personally don't have the expertise to deal with offshore companies. The whole thing makes me feel a bit jittery to say the least but I do want to try and advise the client.

Any comments on this would be welcome.Thanks in advance.

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.