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Companies registration in United Kingdom

The business prestige of the United Kingdom and Nothern Ireland confirms the constant hit of the state in the top 10 countries in the world for the simplicity of doing business (the rating is updated annually by the World Bank - The World Bank).

Other advantages include:

  • The level of economic development of the country;
  • Simplicity, efficiency and availability of work of state bodies, including tax (HMRC);
  • High level of investor protection;
  • Lack of currency control;
  • Convenient location for international business.

It is worth noting that there is a public register of companies (Companies House), which contains information about the director, secretary, shareholder (beneficiary), as well as financial indicators (financial statements) of the company, etc.
Since 2018, the state has been involved in Automatic Exchange of Financial Account Information in Tax Matters within the framework of the Common Reporting Standard (CRS).

Below are several types of companies for doing business:
- Limited Liability Company (LTD),
- Limited Liability Partnership (LLP) and Limited Partnership (LP).

Limited Liability Company (LTD)

  • Registered under the laws of England and Wales,
  • The founder of the company can be an individual or a legal entity, there are no requirements for residency,
  • LTD companies are taxed, in particular, corporate tax (corporate income tax),
  • Tax rates are set annually by the law on the country's budget. The fiscal year in the UK begins April 1 and ends March 31 of the following year. Currently, the rate of corporate tax is 19%,
  • LTD company is a UK tax resident and is entitled to receive a certificate confirming this residency (tax resident status).   

Limited Liability Company is obligated to file to Companies House the Confirmation Statement (contains information about the legal address, share capital, shareholders, director, person with significant control, ect) and Annual Accounts (contains information about the company's financial activity. The first report must be filed within 10 months from the end of the reporting period. The reporting period is defined as the end of the month following the end of the calendar year from the date of incorporation) as well as Tax Reports to HMRC, etc.

Companies (LTD) can be registered as a VAT payer (Value Added Tax (VAT)). The company is not required to register as a VAT payer if its sales in the UK do not exceed £ 85.000.
Our qualified accountants will assist you with the preparation and filing of the financial statements as well as the VAT reports, if necessary.

From the 1st of April 2015 the UK introduced a new tax - diverted profits tax. The tax applies only to large organizations. Small and medium size companies are defined as follows:

(1)     the number of employees does not exceed 249 people;

(2)    the annual turnover of less than EUR 50 million or an annual balance sheet do not exceed 43 million EUR.

The tax will be levied on the income  ( recognized as “gone”), at the rate of 25% (or 55% for oil and gas companies, mining resources on the continental shelf of the United Kingdom).

Limited Liability Partnership (LLP)

LLP is a partnership registered under the laws of England and Wales with at least two founders (partners).
LLP revenues is treated as income of its partners and therefore are being taxed in the country (jurisdiction) of registration of the partners, accordingly by their shares in the partnership. Partners can be both physical and legal persons, there are no requirements for residency. There is no director in the LLP, the partnership is managed by Designated partner.
LLP Partnership is obliged to file the annual financial statements to Companies House.

Scottish Limited Partnership (SLP)

Scottish limited partnership is a private limited partnership registered under the laws of Scotland with two or more partners. At least one partner must be appointed as Managing Partner. Partners can be both physical and legal persons, there is no residency requirements.

SLP revenues is treated as income of its partners and therefore are being taxed in the country (jurisdiction) of registration of the partners, accordingly by their shares in the partnership.
SLP is required to maintain financial statements but is not obligated to file annual financial statements to Companies House.

 

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