Registration of a legal entity in the UK for 5 days from 790$ without risk - 30% deposit.
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Taxes for companies registered in Great Britain
from 0% to 19%
Corporate Income Tax
Income Dividend Tax
Capital gains tax
UK Company Registration Fee
UK Business Basics
United Kingdom of Great Britain and Northern Ireland
The official name in English: The United Kingdom of Great Britain and Northern Ireland.
Great Britain consists of three countries: England, Scotland and Wales.
The United Kingdom includes Great Britain and Northern Ireland.
This is an island state located between the North Sea and the Atlantic Ocean, which owns overseas territories in different parts of the world.
Area of Great Britain: 242514 km² of which 53.7% of the territory is occupied by England, 32.1% of Scotland, 8.6% of Wales and 5.6% - Northern Ireland.
Estimated population: 65 million people, most of whom live in England (about 55 million people).
UK business climate
The UK business climate is rightfully among the best in the world. Great Britain is deservedly called the most important international business center, and London - the leading financial center. The UK is among the ten most developed countries and is fifth in the world and second in the EU in terms of GDP. The country is a major global exporter and importer of goods and services.
The largest number of transactions in the global financial market is in London; it accounts for one third of the world currency turnover. In the UK, the headquarters and offices of about 70% of international companies are concentrated, more than 20 thousand audit firms are located, as well as the offices of more than 200 of the largest foreign law firms. The UK is the leading European and third world insurance market; its share in the global maritime insurance market is 29%. The UK accounts for 27% of the European consulting market.
In order to attract more entrepreneurs and companies, the UK government is taking significant steps to simplify business registration procedures. The average time to register a company in the UK was reduced to 24 hours, and the complete process of organizing a new business takes up to 7 days.
Types of Companies in the UK
There are four main types of companies in the UK:
Open Joint Stock Company (Public Limited Company, PLC):
Type of joint-stock company with the possibility of shareholders transferring their shares to third parties without the need to obtain the consent of other shareholders. To become a joint stock company, a business must have a share capital of £ 50,000 or more, of which at least 25% must be paid before the company can be registered. Open joint stock companies must also have at least two directors.
Private company limited by guarantee (Private Company Limited By Guarantee, CLG):
Limits the liability of its guarantors to a predetermined amount that they must pay in case of liquidation of the company. Non-profit organizations, such as charities, clubs, student unions, societies and social enterprises, are typical organizations that use this type of company to set a low limit on the amount that members (owners) must pay if something goes wrong. In this type of legal entity there is no share capital and, therefore, shareholders. Members of the company are guarantors and often only liable for a nominal amount, for example, 1 pound sterling, if the company is liquidated.
Private limited company (Private Company Limited By Shares, LTD):
They are the most commonly used type of company in the UK. They are often referred to as private limited companies, and the word “Limited” or the abbreviated suffix “Ltd.” should be at the end of their name. One of the main reasons this particular type of company is so popular is that, as is the case with public limited companies, the founders bear the risk of losses associated with the activities of the company, up to the value of their shares or shares in authorized capital of the company. There are also no requirements for authorized capital.
Limited partnership (Limited Partnership, LP):
Not considered as a legal entity. The general partner is responsible for all debts and obligations of the partnership. A limited partner is liable to the extent of the amount of his contribution.
The partnership has the right to conduct any activity permitted by law. A partner can be any natural or legal person, regardless of residence, citizenship or location. LP consists of 1 (or more) general partners who manage, and 1 (or more) limited partners who contribute a monetary amount or other property to the partnership capital in value terms.
Limited partnership (Limited Liability Partnership, LLP):
Combines the benefits of a traditional partnership and a limited company. It is an independent legal entity and is responsible for its obligations. The liability of all LLP participants is limited by the size of their contributions. You can create a limited partnership for doing business with 2 or more members. A partner can be a natural or legal person. LLP does not have directors and secretaries. Management responsibilities are distributed among the participants. The general partner acts as the general director. LLP is not a UK independent tax payer or corporate tax payer. LLP participants are subject to taxation in relation to the income received by each of them individually as a result of participation in the partnership. The income of the partnership participants may be taxed in accordance with the laws of the country or countries of which they are tax residents.
Unlimited company (Unltd):
Shareholders are fully responsible for paying off any financial obligations, regardless of how much they have invested in the company as share capital.
Requirements for foreign founders and directors
The founders and director of the company can be a citizen of any country.
Stages and deadlines for registering a company in the UK
A company is registered by submitting registration forms to the Companies Register. There is electronic registration, which makes it possible to carry out all actions without personal presence.
Checking the company name.
Filling out and preparing the necessary registration forms.
Payment of mandatory fees and charges.
Company registration in the Companies Register.
Notarization and apostilization of company documents.
Delivery of documents to the client.
What is required to register a company in the UK?
Passport (scan copy or notarized copy).
Confirmation of the address (scan copy of a document confirming the place of residence, for example: a receipt for payment of utility bills or a copy of another similar document).
Company registration in the UK takes an average of 7-10 business days.
Ready partnerships are always available, the registration of which will take 1 day.
Documents received upon registration of a company in the UK
Memorandum of Association.
Articles of Association (Charter).
Subscriber’s Resolution (Resolution on the appointment of the first director).
Consent Action of First Directors (Minutes of the first meeting of directors).
Stock certificate (Share Certificate).
In case of nominee service:
Resignation Letter (Undated letter of rejection from the nominee director)*.
Nominee Agreement (Nominee Service Agreement)*.
Power of Attorney (General power of attorney).
Declaration of Trust.
Certificate of Non-Trading (Confirmation of ignorance).
For tax purposes, a UK resident is a company incorporated in the UK or centrally controlled and controlled by the UK.
Resident companies in the UK are subject to corporate income tax on global income.
A non-resident company is subject to corporate tax only on profits arising in the UK.
The corporate tax rate is set separately for each fiscal year beginning April 1.
For the period until April 1, 2020, the rate is – 19%.
If taxable profit is associated with the use of patents, a reduced tax rate applies, which for the period from April 1, 2017 is 10%. At the same time, the reduced rate applies not only to revenue from patent royalties, but can also be applied to profits from the sale of a patented product.
Incoming dividends received from UK and non-UK companies are usually exempt from corporate tax if certain conditions are met..
Capital gains tax:
It is part of taxable profit and is taxed at a corporate tax rate of 19%.
Registration of a company as a VAT payer is mandatory for companies in the UK whose revenue exceeds the established threshold of 85,000 pounds. In addition, there is the possibility of voluntary registration when the turnover does not exceed the established threshold.
20% - standard VAT rate.
5% - for some construction work and energy-saving products.
0% - export of goods from the UK, as well as the supply of certain goods and services (for example, books, food, children's clothing).
Insurance services, educational services, financial services, as well as healthcare and social services are exempt from VAT.
Companies registered for VAT with annual taxable turnover not exceeding £ 150,000 can simplify VAT accounting using the “fixed rate” scheme. According to this scheme, companies take into account VAT on turnover, and not on each individual transaction.
The UK is the world leader in the number of international double tax treaties concluded. A significant role in attracting foreign capital to the country is also played by bilateral agreements between the UK and other countries to promote trade and investment and similar agreements in force within the European Union.