United Kingdom

Introduction

The United Kingdom is a sovereign state which is located at the northwest coast of mainland Europe. It is comprised by the island of Great Britain, the northeast of the Ireland and many smaller islands.

The UK is one of the most successful economies in the EU. Compared to any EU country, it has attracted more foreign investments from Asia and the United States. You can easily tell by the number of the companies registered in the UK by foreign companies.

UK company formation and bank account opening are very simple and convenient. It is required to file an annual return within 28 days after the date to which the return is made up and file the first accounts within 21 months after incorporation with the Companies House. Subsequent accounts to be filed within 9 months from the year end date of the accounts. It takes only 1 working days for tailor-made incorporation. However, if you don’t want to bother to name the company and wait for the time of incorporation, you can consider purchasing our shelf companies in order to save your valuable time. Information of director and shareholder is accessible publicly after incorporation. If you don’t wish your personal information to be disclosed, we also provide nominee director and shareholder services for the demand of your anonymity. Our firm is proudly recognised as an approved qualified professional intermediary with major banks, we are able to assist our clients in establishing business bank accounts at international and local banks. After opening the bank account, you can start doing the business by using your UK company.

Features and Advantages

  • At least one director who must be natural person and 1 shareholder who can be natural person or corporate body. They can be of any nationality and no need to reside in UK.
  • Information of director and shareholder is accessible publicly. Your anonymity requirement can still be preserved by using our nominee services.
  • Preparation of accounts is required, but accounts are not accessible publicly.
  • Private limited company must make an annual return which should be delivered to the Companies House for filing within 28 days after the date to which the return is made up.
  • Corporate tax rate is only 20%, it’s the lowest in Europe area.
  • UK signed DTAs with over 100 countries, you can benefit from its tax advantages.
  • It takes only 1 working day for UK company formation.
  • Stable jurisdiction and reputable financial centre.

Why UK Company Formation?

UK is perhaps the easiest and cheap jurisdiction for limited company formation in the world. Since cross-border businesses are often generated in European Economic Area, many enterprises registered companies in the UK and they can commence their businesses around the world.

Unlike most of the countries, UK company formation does not require lawyer, notary public or judiciary to be involved for the whole process. In addition, the minimum capital requirement for registration of an UK company is only one pound. Compared to other jurisdictions where you need to inject substantial capital investments upon registration, UK company formation is fairly easy and convenient.

No matter where you conduct your business, the director and shareholder no need to reside in UK, you can manage your UK companies and commence business around the world. Following are the major reasons why you register the company in the UK:

  • Market Size – UK is the fourth largest economy in the world
  • Strong Currency – Pound performs better than Euro
  • Location – Great location for investments to EU
  • Policy of Government – The business environment in the UK is liberal

Tax Advantages of UK Company

Double Taxation Treaties
The UK tax residents and foreign investors have long been benefit from the double taxation treaties. UK has signed the double taxation treaties with over 100 countries. In general, it is applicable to reduce the source-country withholding tax on the repatriation of profit to a UK holding company.

Withholding Tax
UK does not levy the withholding tax on dividends paid by UK companies even if the recipient is outside of the UK.

Dividends
In major cases, dividends received by a UK holding company from both UK and non-UK companies are exempt from UK corporation tax. Unlike the ‘participation exemptions’ system in some other jurisdictions, there is no requirement of minimum equity holding for a UK holding company to qualify for the exemption from tax on foreign dividends.

If the recipient is a “small company” which defined by EU that has less than 50 employees, annual turnover and/or total assets in balance sheet less than 10 million EUR, the exemption for non-UK dividends only applies if the payer is established in a jurisdiction that has concluded a tax treaty with the UK which includes a nondiscrimination provision. However, since the UK has a wide network of double tax treaties, this will seldom be a problem for the above mentioned unless the dividends are received from tax havens.

Summary

Type of Company
Limited Company

Time to Incorporate
1 working day

Disclosure of Director / Shareholder Information
Information of director and shareholder will be published to the website of Companies House after incorporation. Disclosure of client’s information can be prevented by using our nominee services.

Taxation
Corporate Tax Rate: 20%

Minimum Director
At least 1 director who must be natural person

Minimum Shareholder
At least 1 shareholder who can be natural person or corporate body

Audit Requirement
If the company meets two of the following three, no need to audit the accounts:

  1. Annual turnover less than 6.5 million pounds
  2. Net assets less than 3.26 million pounds
  3. Number of employees less than 50

Filing of Accounts
Preparation of accounts is required (Accounts are not accessible publicly)

Filing of Annual Return
Required