Company Formation and Incorporation Procedure in United Kingdom |
Posted: January 18, 2018 |
Setting up a company in European market should not be ruled out as other country markets. Approximately 25% of Global Wealth syndication is in European Territory. It also has the biggest consumer market in the world. It is a synergy of 27 member states. The internal market for services to be around 4$ trillion by World Bank. It is also one of the most highly skilled continents in terms of labor force & also technology. Oversees & Strategic alliances are preferred with Europe because of the following: - Geography (Centrally located) - Historical Trading Ties - Cross Border Syndication - European Union Policies effecting trade facilitation with various countries. Also there are comprehensive free trade agreements effected between US & European Union, fusing world’s two largest economies. There are various Free Trade Zones in Europe offering Tax Exemptions for international investors: - Le Verdon Free Zone in France - Bourges Free Zone in Bulgaria - Duisburg Free Port in Germany - Liverpool Free Port in UK There are certain Tax-efficient jurisdictions as well such as Guernsey, Isle of Man, and Jersey which are incentivizing economies around the world to invest further.
PRE-REQUISITES IN FORMATION OF A UK COMPANY: - A Company can be incorporated in UK with just one shareholder or one Director. - No Minimum Capital Requirements - Process is much quick & costing is low - No need to use a Lawyer, Magistrate or Notary. (However it is strongly recommended by UK Law to have a legal counsel or Company Secretary for Oversees Directors who start up business in UK) Steps In Incorporation of Company in United Kingdom : - Choose a company name & make a search on the online name application portal or directory. - All UK Companies must have a registered office space in UK Region only. - All the documents pertaining to Company Incorporation must be filed with Companies House in UK Government Agency. - Checkout Standard Industrial Classification SIC of Economic activities from Companies House; apt for the company. - Common Seal is mandatory if it’s an oversees incorporation for execution of the legal documents & verifying their authenticity. - In order to bail out the incorporation process along with opening of the Bank Account for vetting, documents involved must be apostilled. - Certificate of Good Standing from UK Registry I.e. Companies House has to be issued which is an official document that verified the registration & status of the company in picture. - Services of a certified accountant & a company secretary based in UK, must be sorted for in order to get the registration process smooth & legible. - Obtaining VAT Registration upon applicability of local taxes from HM Revenue & Customs. Company formation in United Kingdom is perhaps the easiest and least expensive country in the world in which to establish a limited company and the strength of the UK territory, together with the strong reputation that accompanies UK companies globally makes this country one of the most preferred locations to establish a business. Within the European Economic Area (EEA), the simplicity of conducting business across international boundaries leads many business owners to choose the UK as their favored place of set-up. UK law of course places no trading restrictions on companies registered here so the company will be able to carry out its activities anywhere in the world. Dependent upon local tax legislation, if a UK company does not carry out any trading activities in the UK and it is managed oversees, it is possible to be treated as non-resident for corporation tax in the UK. This may depend upon whether a ‘Double Tax Treaty’ is established between the UK and your country of operation. Also anti-money laundering regulations are checked with the KYC & AML Documents so that any illegitimate foreign capital is not entertained.
FEE STRUCTURE: - Online filing through the inbuilt software – Standard Fees 10 Euros - Web Incorporation through Companies House Portal – Fees 12 Euros - Paper filing of IN01 Form to appropriate office – Fees – 40 Euros TAXATION STRUCTURE: The UK tax year dates are set from 6th April of one calendar year to 5 April of the subsequent year. Thus, UK tax year is often denoted as 2016/17 for the current tax year. Most corporations in UK are levied 20% tax on their net profits, & should file a separate company Tax Return with HMRC. The applicable UK corporate tax rate depends on the level of company profits, applicability, as a foreign company with a UK branch or office, or if some other sort of an entity. UK Dividend Tax is not required to be paid on the first 5000 GBP of dividend received in a tax year
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