buying a shelf company

Ananbel

New member
Joined
9 Dec 2004
Messages
5
Visit site
Hello all
Has anyone heard anything about buying a shelf company when buying a boat in relation to taxes. We are from NZ and buying a boat in Croatia, the boat has to be registered does it not. It has been suggested we buy a shelf company for a nominal amount. How mjuch is the nominal amount and how complicated is the process.
Hop you can help
Thanks
Annabel
 

boatmike

Well-known member
Joined
30 Jun 2002
Messages
7,044
Location
Solent
Visit site
I don't think you want to "buy" a "shelf" company. I think you are talking about "registering" a "shell" company. Frankly you need professional advice here from an accountant with overseas experience. Accepting amateur advice will lead you into difficulties. Cans of worms come to mind.....
 

Howardnp

New member
Joined
21 Jul 2004
Messages
162
Location
Worcester
Visit site
Has to be a shell company not shelf (although people talk of buying a company "off the shelf" that just means that it already exists). With my day job hat on (accountant) I would suggest you take professional advice from a specialist.
Assuming you're talking of UK regs etc if your company owns the boat and then you use it privately you will be faced with potential tax charges as a benefit in kind.
As I said, and another poster did also, get some specialist advice on this otherwise you could find you are digging a big financial hole for yourself.
On shell companies, you can buy a new company for yourself from around £75 (maybe a bit cheaper).
 

novice04

New member
Joined
8 Oct 2004
Messages
19
Location
Zagreb, Croatia
Visit site
Annabel,
If you are thinking of buying/registering a Croatian company, the costs of incorporation are as follows:
- ca 2.700 EUR (20.000kn) - minimal founding capital (which you may spend the next day);
- 150 EUR (roughly) - court/registration fee
These are considered as "nominal costs" of registering a corporation.
The process lasts for 2-3 days and re-registering an existing company maybe a day or two. In both cases using professional legal services (few hundred EUR - I don't practice law, so don't know) would be highly recommended and could probably well pay off through some good advice. Note: once a company makes the first transaction from/to it's bank account (it buys a boat, for example), it's obliged to keep records and accounting!
Good luck,
N.
 

snowleopard

Active member
Joined
16 May 2001
Messages
33,645
Location
Oxford
Visit site
A 'shelf' company simply means buying a company that has been created previously then changing the name/directors etc. It's a little more expensive than registering from scratch but saves time.

The important questions are (a) which country will the comany be registered in and (b) will it mean more or less tax.
 

BrendanS

Well-known member
Joined
11 Jun 2002
Messages
64,521
Location
Tesla in Space
Visit site
Loads of them available, as business school students set them up all the time as pocket money earner. As to whether they are worth it, as anyone can set on up?

As you say, depends on what the owner of the shell company wants to do with it. JFM input required here methinks.
 

Ananbel

New member
Joined
9 Dec 2004
Messages
5
Visit site
Thank you all very much for your ideas and knowledge. If we were to register the boat I guess we would have a choice of EU countries to register with. Do you happen to know which country in the EU has the lowest tax rate.
Thanks again
 

Sea Devil

Well-known member
Joined
19 Aug 2004
Messages
3,906
Location
Boulogne sur mer & Marbella Spain, Guadeloupe
www.youtube.com
Annabel I am not quite clear what you are trying to achieve?
As 'foreign' nationals you need to have boat registration in order to clear in/out of countries. With most European countries there is a swath of legislation going with the registration and some like the UK you cannot register in anyway. Then there are all the 'offshore' registrations like Gibraltar, Channel islands, Cayman islands - Panama but all these are really aimed at the rich with big expensive toys and mainly require a company in the place of registration with one share owned by the legal/accountant bod that sets it up to minimize tax.

For more ordinary mortals the trick is to register your overseas boat with your own country - I know NZ has some pretty daft rules about equipment but if you are in the Med with the boat they will never know if you have the gear or not. To cut it short - Have you looked at registering your boat with your 'home' country?
 
Top