Today, the UK is the most suitable country choice for working with international partners.
Low taxes, ease of work, the ability to open an account with many foreign banks attract customers from all over the world. During difficulties in working with offshore companies, disclosure of beneficiaries of all companies, we offer you to set up a company in United Kingdom for legal business as the best alternative.
The United Kingdom is a world leader in political, economic, and financial spheres. Great Britain attracts investors from all over the world. Having a business in the UK is prestigious and profitable. The good reputation of the country has a positive effect and enhances the image of the company in front of the partners and investors. Let’s see what opportunities this country offers for your business if you decide to open a company in United Kingdom.
Why set up a company in United Kingdom
For most businessmen, two factors are essential when choosing a country of registration: the prestigious jurisdiction, and affordable service of the company. The United Kingdom has an impeccable reputation, is a permanent member of the UN Security Council, a member of the Commonwealth of Nations, NATO, OECD, Council of Europe, OSCE. The United Kingdom owes its current global influence to established trade relations with many countries, foreign investment, and stable and well-thought-out legislation.
There is a common misconception that the UK is offshore. This is not true. The UK has a clean reputation, but the law provides for tax breaks. First of all, English companies are popular among software developers, as well as IT companies. English companies for IT business is an opportunity to work with major international companies.
Also, registration of company in UK is a convenient and profitable tool for manufacturers, trading and shipping companies. The English company allows you to work with European partners, expanding markets for goods and services. In addition, the UK based company is the best solution to work with international investments and any financial instruments protecting your assets and business.
If the English company is a trading company, then it can easily get a VAT number and an EORI number. EORI number for the UK company can be obtained within 5 business days.
Ways to register company in UK
New company registration in UK is made using the official state website of Companies House. In general, the registration procedure includes a couple of simple steps described below.
Naming the company
The chosen name should be unique. It is better to get several options since duplicate company names are not allowed in the register. Depending on the form of ownership of the company, it is necessary to know that the chosen name should have the ending LP, LTD or LLP, respectively. The words National, Imperial, Royal, Empire, Crown should be avoided.
Decide on the form of ownership
You should pick out the form of ownership the best suitable for your business. Most often, foreigners choose British LP, LTD or LLP. All these are limited partnerships that are created to minimize risks and raise the profit level of their owners.
Prepare a full package of documents for registration
When register a new company in UK you must have at least 2 partners, which can be individuals or legal entities. Non-residents are allowed. Normally, the UK has minimum company registration requirements but a positive decision about setting up the new company depends largely on the extent to which a complete set of documents you provide.
At the end of the tax period, the tax return is filed with the tax authorities. Separately declared VAT (VAT refund).
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Private limited companies
The name of the English company must end with a word, phrase or abbreviation, which indicates the limited liability of the company, for example, Limited or Ltd. Minimum authorized capital is not established. The shareholder of a company in London can be one physical or legal person with no residency requirements. The director can also be one individual with no residency requirements. The shareholder and director may be the same person.
If you are going to register limited company in UK, you need to know that English companies LTD are required to maintain and submit an annual financial report, as well as pay taxes on the basis of financial statements. Corporate tax (income tax) in England is charged for the reporting period, which is 12 months. The income tax rate is 19%. The report submission date for each English company is different and depends on the date of registration of the company.
As a rule, English companies need to get a VAT number to have successful trading with European partners. It is possible to get VAT for an English company, but this requires confirmation that the taxable turnover of the company exceeded £ 85,000.
The name of the company should end with a word, phrase or abbreviation, which indicates the limited liability of the company, for example, Limited Partnership, LLP. Minimum authorized capital is not established. The founders (shareholders of the company) must be at least two partners, one of which must be a legal person. A partner can also be an individual with no requirements for residency or place of registration. LLP does not have a director; the UK register a company is managed by an authorized partner.
The English LLP company is obliged to maintain and submit an annual financial report, but it is not subject to corporate tax, and income tax is paid by partners in whose interest this profit is distributed. The term of registration of LLP company is 2 weeks. In addition, LLP companies in England have several advantages in comparison with the activities of residents of this country. So, they are not subject to taxation in the UK if they conduct their business activities outside it.
Benefits to open company in UK
Set up company in the UK is a good way to use all the advantages this country offers. It opens up broad prospects for working in the global business arena, it is profitable to invest and get a good return. Today, many prestigious banks open accounts for English partnerships only under the condition that the company does not use nominal services, and the partnership is registered with the beneficiaries.
The main advantages of setting up a LTD company UK are the following:
- The UK is part of the largest international organizations such as the OECD, G7, G20.
- Strong economic and political situation.
- The most developed banking system in the world.
- The pound sterling is one of the most stable world currencies.
- The high prestige of the state.
- Availability of double taxation avoidance agreements with more than 100 countries, including 5 countries from the Big Seven (Germany, France, Italy, Japan, Canada, USA).
- 100% guaranteed investment safety.
Perhaps the main reason why many businessmen and investors make their choice in favor of registering a company in the UK is the stability and predictability of legislation. In addition, UK law provides a wide range of legal forms, each of which may be of interest to various types of businesses.
Quick and easy company formation
What do you need to know before you start foreign company registration in UK?
- All partnerships and companies must have a registered address in the UK.
- A company limited by shares can be created by at least one person (bearer shares are not allowed).
- Partnerships with limited liability are created by at least two persons (partners).
- Directors, shareholders or partners of a company or partnership may be persons from any country.
- The legal entities can be directors, shareholders, and partners of the company or partnership in the UK.
- Trust agreements are possible in the UK.
Also, it is worth noting that today the UK authorities are focused on the active support of small businesses, even if foreigners own this business. As a result, various deductions and support schemes are applied. In addition, intellectual property laws exist in this country able to efficiently protect companies and their products from theft and fraud. By registering a company in the UK, you can take advantage of British law to protect your intellectual property rights.
However, the UK is a high tax jurisdiction but there are opportunities to significantly optimize taxation. To understand all issues regarding taxation and to be sure that all tax obligations are met, you will need an accounting and consulting support.