UK company formation

In England it is possible to register a Private Company Limited by shares “LTD” and Limited Liability Partnership “LLP”.

Features of English “LTD” companies

At least one director can operate English “LTD” company, natural or legal person, which can be the resident of any country. Such company owns at least one shareholder, natural or legal person, which can be the resident of any country. It is advisable, but not obligatory, to appoint a secretary, natural or legal person – the resident of any country.

All information on directors, shareholders and secretary is stored in Companies House; the information on real owners is provided only to the registered agent and is confidential.

The standard declared capital of UK “LTD” is 1 000 pounds, the minimum paid-in capital is 2 pounds.

The name of the company has to end with word “Limited” or the abbreviation “Ltd.”. Without a special permission registration of the names containing words “Bank”, “Insurance”, “Trust”, “Assurance”, “Building Society”, “England”, “European”, “British”, “Irish”, etc. is not allowed. In addition, the use of endings “National”, “International”, “Holding” and “Group” is limited.

It takes from 6 to 7 working days to register UK “LTD” company and approximately 4 weeks to receive a full set of corporate documents.

Features of English “LLP” companies

For the incorporation of the UK “LLP” company at least two founders (Members) are needed, natural or legal persons, which can be the residents of any country. Founders can also be managers. It is not necessary to appoint a secretary.

The standard declared capital of the UK “LLP” company is 100 000 pounds; the minimum paid-in capital is 2 pounds.

The name of such company shall end with the abbreviation “LLP”. Without obtaining the corresponding licenses registration of the names containing the words “Bank”, “Insurance”, “Trust”, etc. is not allowed to register a company.

Taxation of UK companies

The standard rate of a corporate tax in UK is 28% and is applied to profit that exceeds 1 500 000 pounds, or when the requirements about application of other tax rate is not declared. The rate of 21% is applied to companies with the profit under 300 000 pounds; 21-27% to companies with the profit from 300 000 to 1,5 million pounds and 27% to companies with the profit more than 1,5 million pounds.

Standard VAT rate is 20%, but on some goods / substances there are special discounts created, for instance, 5% per household fuel.

There is a tax on capital gain in England. In 2014-15 the sum exempted from the corporation tax makes out 11 000 pounds for individuals and 5 500 pounds for trusts.

The rate on the realized gain of the capital is established as follows:
• 18% for individuals;
• 28% for trusts and employees;
• 10% for entrepreneurs.

If “LLP” owners (Members) are non-residents of the UK and the company does not gain any income on its territory, owners of such company report on the profit at the place they have been registered.

LLP companies are not taxpayers in UK and they do not get under the action of the interstate contracts signed with England.

English “LTD” can receive tax return having filled an appropriate form on the site of tax service of the Great Britain.

Accounting and audit of UK companies

UK company must submit an annual report to the Companies House every 12 months after its incorporation. The report contains updated information on the legal address, directors, secretary, shareholders and a share capital. Financial statements must be submitted to both Inland Revenue and Companies House annually. English LLP does not submit anything to the Inland Revenue.
It is important to remember that the tax year and financial year in England do not coincide. The tax year ends on the 31st of March.

Nominee services

For the UK companies it is allowed to appoint the nominal founders, directors, secretaries and shareholders.

Opening bank account for UK companies

The account for a UK company can be opened in any of our partner banks.
It is important to keep in mind that every bank account opening procedure is individual and depends on the accuracy and timeliness of information and documents provided by the client.