Converting an independent business to a company

Process

Transferring activity from an independent business to a company requires tax planning. A transfer can be made with an exemption according to section 104 of the ordinance.

Considerations

  • Corporate tax 23% versus individual rates (up to 50%)
  • Additional tax on dividend (25%-30%)
  • National insurance liability is different
  • Profit retention advantage in the company

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.