Setting up a company in the United Kingdom

 

Setting up a company in the United Kingdom

The United Kingdom is one of the most popular locations in the world for entrepreneurs who decide to expand their business by incorporating a new entity abroad. There are many reasons for this; it could be for tax purposes, bearing in mind that as a general principle corporate tax is equal to 19%. Another reason could be the time frame within which a new entity can be setup, (one or two days), or the smooth, flexible and cost-effective management of the entity.

Types of entity

The most popular entity is, without doubt, the LTD (Limited liability company) which limits its liability to the capital share.

Another time entity also set up frequently is the LLP (Limited Liability Partnership). unlike the LTD company, the LLP requires at least two members and does not itself have a tax liability. Instead, each member pays tax on their share of the profits. but is not personally liable for any debts the business cannot pay, and its liability will be limited to the capital share of the entity. The LLP is a type of entity which is normally incorporated by professionals (i.e. Lawyers, consultants, engineers, etc), even if there are not residents in the United Kingdom.

With regards to double taxation issues, it is important to underline that there are over 3,000 of these treaties worldwide. Double taxation treaties aim to eliminate the double taxation of income arising in one territory and paid to residents of another. In particular, the UK has double taxation treaties with more than 130 countries, making it one of the world’s largest networks. This network includes Italy, Spain, Luxembourg, Ireland, Hong Kong and the USA among others.

UK VAT

Another important point to address is VAT. The current VAT rate for both LTDs and LLPs is fixed at 20%. Unlike other European jurisdictions, the current regulation allows small and medium enterprises (SME) not to apply VAT when their annual turnover is below the threshold of £83,000. This is the highest threshold among European countries.

In light of this threshold, there is no obligation to request the VAT Number when the company is incorporated. This, however, does not prevent businesses from applying for a VAT number at an earlier stage. The need for a VAT number will depend on the type of business, number of clients, location of their clients, as well as other relevant aspects.

CONTACT US

ACCEPTANCE

SERVICES

Incorporation Company

Limited Liability Company LTD

The service is comprehensive of the following:

  • Incorporation of the company at the Companies House
  •  Articles of Association;
  • Certificate of Incorporation;

Time frame to incorporate the company is between 2 and 4 working days.

Limited Liability Partnership LLP

The service is comprehensive of the following:

  • Incorporation of the company at the Companies House
  • Articles of Association;
  • Certificate of Incorporation;

Time frame to incorporate the company are between ten and fifteen working days. The application cannot be submitted electronically.

Bank account

Assistance with the bank account opening for the new company
Assistance with the bank account opening for an existing company
Assistance with the bank account opening for individuals

 

Other services

Fiduciary services for shareholders
Fiduciary services for directors
VAT number application
Registered office in the City of London
Set of documents legalised “Apostille”
Set of documents translated and legalised “Apostille”

Should you require any other service not listed above, please do not hesitate to contact us.

* All above costs are subject to applicable taxes.