UK Company

Requirements for UK Company Registration

To open a company in the UK, you must first register the company in the UK with the following mandatory details:

• Certified copy of passport
• Names and details of directors
• Details of shareholders and share capital
• Registration fee
• The Company’s name and registered address (if pre-existing)
• Articles of Association and Company Memorandum
• Completed IN01 Form

UK Tax Rates for a Private Limited Company

UK incorporation regulations require Private Limited Companies to pay UK Corporation Tax at a rate of 20 – 28%, which is determined after a company has filed their annual returns. Company Directors are also liable to pay UK income tax for any profits from the company. No taxes are paid on the dividends of a holding company and there is no double taxation on dividends distributed through to EU member countries.

After setting up a company in the UK and going through the incorporation process, a Unique Taxpayer Reference (UTR) number will be issued by the HM Revenue and Customs (HMRC), which will be sent to the Company’s registered address. The HMRC will instruct you how to register your company, file the company accounts and pay corporate taxes.

UK VAT – What is the VAT Rate in the UK?

The Standard VAT rate in the UK is 20%.

The VAT Reduced rate is 5% and applies to some goods and services, such as children’s car seats and home energy.

If a company does not have an annual turnover of more than GBP 67,000, then Registration of VAT is not required. A Company that does register can collect a number of benefits through registration, such as the ability to reclaim input tax and collect VAT from customers. Companies register through the (HMRC) website.

Some things are exempt from UK VAT, such as postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services. Check the rates of VAT on different goods and services.

Corporate Details: Starting a Limited Company in the UK

Anonymity, Confidentiality and Disclosure

The details, information and names of all Directors and shareholders are made publically available. All financial and accounting records are publically available. The details of the beneficial owner are kept confidential. Nominee services are allowed, which can make names and details of shareholders and directors confidential.

Company Shares

A UK Private Limited Company may issue registered, preference, and redeemable shares and shares with or without voting rights, the details of which should be stated in the Companies formation documents.

Required Capital

The minimum paid up share capital for a UK Private Limited Company is GBP 1 with a usual authorized amount of GBP 1,000. Capital is usually denoted in the form of shares with one share being the minimum.

Financial Statements required

All UK Companies must file accounts with thee Register of Companies and the Inland Revenue. Companies that qualify as small companies, i.e. those with an annual turnover of less than GBP 5.6 million, may not need to have accounts audited and may apply for an audit exemption.

Directors

The minimum number of Directors needed for a UK Private Limited Company is one (1), who does not need to be a resident of the UK and may reside anywhere in the world and be of any nationality. Corporate Directors are allowed, however, a company must have at least one director who is an individual.

Company Secretary

A Private Limited Company does not require a secretary. If it is a single member company then the director can be the secretary.

Company Meetings

Company meetings are not required and, if meetings take place, they may be anywhere in the world.

Principal Corporate Legislation

UK Private Limited Companies are regulated by the UK Companies Act 1985 and its amendments in 1989 and 2006

Type of Law

English Common Law

Shareholders

There is minimum of one shareholder required for a UK Private Limited Company. A shareholder may be an individual or a corporate body and may be a resident and citizen of any country. Shareholders do not need to be local. Information and details of shareholders are made available to the public. Nominee services are permissible.

Trading Restrictions

A Company is restricted from conducting business in banking, insurance, consumer credit and all other activities in the finance industry.

Exchange Controls

There are no exchange controls in the UK.

Powers of the Company

A UK Private Limited Company has the same rights as a natural person.

Language of legislation and Corporate Documents

English or Welsh

Registered Office required

A registered office is required for a UK Company.

Local Presence

A local office Is required for all UK companies. Local Directors, Shareholders and Secretary are not mandatory. A list of all the shareholders must be held at the local registered office.

Audit Requirements

UK Companies are required to submit audited accounts, though all companies earning less than GBP 5.6 million can apply for an audit exemption

Annual Reporting

All UK Companies must file and annual return and annual accounts the UK Inland Revenue every year no matter if a company has traded or not

Shelf Companies available

Yes

Time required to form offshore company

1 – 2 days

Name Restrictions

An UK company may not use similar or identical names that are already in use, any name that suggests patronage of the Royal family or the UK government, any name that is undesirable or seen as being offensive

Language of Name

English

Names of Company requiring a special licence or permission

Company names that include the words assurance, bank, building society, insurance, reinsurance, are required to get prior approval from the UK Company Register

Permitted limited liability suffixes

A UK Private Limited Company must have the suffix Limited or Ltd.

Access to Double Tax Treaties

The United Kingdom has signed a number of double taxation treaties which can greatly benefit companies avoid paying double taxes

Licence Fee

N/A