Which option is best for my circumstances with UK Ltd?

kah
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Hi! I have a small Ltd company in the UK, which has been doing business for 15 years. For the purposes of this example let’s say the historical turnover has been around £200k per annum. I am the sole Director of this company and have employed my partner via this company. I have multiple clients in the UK and hope to engage more in both the UK and France going forward via one of the 3 options below, or another more suitable option you might be able to highlight.
My family have now moved to France (we have 2 children) and want to ensure I create the right company set up expected of me, but also one that allows me and my family to successfully transition fiscally.
My partner (we are married) has already set up an ME in France. However, I would like for my partner to also offer services via the new company/ option, they are different services to those offered via the ME.
I ideally need to keep a UK company for some very specific clients who only engage with UK Ltd companies however ‘permanent establishment’ has been highlighted to me so want to ensure I understand the liabilities (cost to the business) that I will need to cover with any option we move forward with.

I believe there are several options open to us but may have missed something can you give me some guidance please?

Option 1. Set up a subsidiary of the UK company in France.
Option 2. Set up a totally separate company in France and keep the UK company.
Option 3. Declare myself as an employee of a foreign business to URSSAF, where I could still pay my tax and French social charges, but via the UK Ltd company.

a) With options 1 and 2, this could be a SARL or a SAS but we see the SAS as giving us the best flexibility (see point above regarding my partner and their ME), I believe they could be involved in a SAS as an associate or investor is this correct?
If we went with option 1 could the UK company be a part shareholder and my partner and I other shareholders?

b) With options 1 and 2, as I am resident in France would I have to introduce a Director into the UK business to deal with the running of the UK business and pay them for these services, or is it an option to ensure I simply go back to the UK to deal with that company’s affairs ?
I have a UK accountant that manages all of this for me and I would be in the UK delivering any Services offered to the UK clients/ or engaging new UK clients as required. I can travel frequently to the UK.

c) With options 1 and 2 I would not take a salary from the UK Ltd company, possibly some dividends, which I would pay tax on in the annual French household tax as part of my ww income, is this correct?
My UK accountant would deal with any applicable UK tax/ double tax treaties.
I would take a salary from the SAS, and dividends at the end of the year once the revenue of the SAS would allow for it.

d) I would like to give my partner a shareholding (so an investor or an associate?) of the French company as they can provide some services for this company. Would it be acceptable for them to receive a dividend at the end of the year from the SAS in payment for the services they could offer (and not a salary as they have the ME), if this is acceptable then would they pay tax on this via the annual household tax return?
Specifically with option 2 can I stay the Director of the UK company and be the President of the SAS?  Does it make any difference if I ensured the services offered in the French company were different to those offered by the UK company?

e) I have read about permanent establishment and am not sure of the disadvantages of this option in relation to permanent establishment. I could ensure the services offered via the UK company and the French company were different if this would be helpful, would this make any difference to this as an option for us?

Can you help me identify what disadvantages of the 3 options and highlight any option I may have missed?
Many thanks

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