UK Company Formation for Non UK Residents
Many people do not realise that UK Company formations can be started by non-UK residents. In fact, the number of UK company formations by non UK nationals, international and multinational companies is growing rapidly each year.
Unlike offshore companies, UK company registration provides an extra level of credibility, trust and respect, assurances that offshore companies cannot provide as easily. Through company incorporation in the UK, your business can trade as a UK company. It can establish a corporate presence in the UK and throughout the EU. A UK ltd company or LLP would allow you to take advantage of competitive company tax rates, plus favourable tax treaties between EU countries and double taxation treaties with over 100 countries worldwide.
What is a Company Incorporation in the UK?
The structure of UK companies can take on one of several legal forms. UK company formation refers to the official process of legally registering your company or business.
The official process for a Limited company or LLP set up involve the filing of specific documents with Companies House. The process of company incorporation forms a business entity with a several legal attributes:
- An incorporated Limited company can sue and be sued, but its liability is limited by its share capital.
- UK companies can enter contracts and agreements
- A limited company may appoint third party to run its affairs
- To register a UK company, a ltd company and Limited Liability Partnership must have certain documents and registers lodged on the public register
During a company formation process the tax authorities will be automatically informed about the company’s status.
After company formation, your company has to comply with specific incorporation requirements and fulfil specific official administrative, maintenance and reporting duties to prevent the default of these UK companies.
Types of Company Formations
The two most common forms of UK company registrations are LLP and limited companies (corporations). Private Limited Companies (Ltd) and Public Limited Companies (PLC) make up the majority of UK companies registered. But, Private UK Limited Company formation (private companies) makes up over 99% of total UK company formations to date, with over 2.88 million private limited companies on register as of June 2012.
What are the benefits of Starting a Company in the UK?
Limited company formation and UK LLP formation are popular with business owners for many reasons including:
- The Ltd Company LLP are separate legal entities, which protect the personal assets of a limited company’s shareholders and directors and LLP members
- Shareholder liability is limited by shares in the case of limited companies.
- Requirements for private UK company formation and UK LLP registration are minimal: 1 director, 1 shareholder (limited) and 2 members (partnership)
- Minimum capital requirement is 1p (recommended is £1,000), no restrictions on the movement of capital upon UK company formations
- Tax savings for UK companies, no withholding tax on paid dividends, and no capital duty on contribution or increase of capital with ltd company formation
- A UK Limited company can raise capital through sale of stock
- The company has continuity; company formation is for life unless dissolved
- Under the laws for a company formation for UK companies, there is no requirement for the directors or shareholders to be UK citizens or residents, nor is there a company formation requirement for them to hold valid work permits.
- No audit is required for a UK Ltd company with a turnover of less than £6.5 million and gross assets (fixed assets plus current assets) less than £3.26 million
There are minimal costs to UK company formations. These are filing of accounts, tax returns, maintaining registers, meeting records. However, we can refer you to an accounting practice in the for support services. Compared to setting up single owner businesses, the cost of starting a company in the UK through company incorporation, and company maintenance may increase business expenses, but they are deductible for tax purposes
UK Limited Company Formation Requirements?
Here are a few guidelines to ensure a fast and seamless UK company set up/company incorporation. These details need to be organised when starting a company in the UK.
How to choose a company name?
To register a UK company, you should have a proposed name for the company formation; UK companies must have a name ending denoting its status e.g. ‘Ltd’ or ‘Limited’ for Private Company incorporation’ or ‘PLC’ for Public Limited Companies, or ‘LLP’ for a UK Limited Liability Partnership. The name desired when starting a company in the UK cannot be offensive or imply government association nor can it be too similar to another name on the register. To register a UK company, if you choose to use one of the ‘sensitive’ words such as Holding, International, Pharmacy, Surgeon in the name of a UK company, you must be willing to provide proof/justification of use.
You must also have the following information and documents for Company registration in the UK:
- Memorandum of Association (we provide model Memorandum of Association)
- Articles of Association (we provide model Articles)
- UK Limited Company share capital (you need to tell us about the shareholders and their % of shares)
- UK Ltd company directors and secretary/UK LLP member details
- Valid Picture identification and Proof of residential address for directors and shareholders
- Partnership Agreement, in case of UK LLP formation (we provide a draft agreement in some of our packages)
UK Company Registration can provide a Low Tax Structure
When properly structured, a UK Limited company can reduce its tax liabilities; one such example is a non-UK resident company formation acting as an agent for an offshore company. A non-UK resident company is liable to UK corporation tax only on the profits of trade through an agency or branch in the UK.
Company registration in the UK can play an important role in structuring your business and provides a tax efficient vehicle for trading. UK company formation is affordable to initiate and maintain.
- UK company formation is possible for non-UK residents.
- Company formation is affordable and simple.
- Company formation in the UK can be completed in two days.
- Ltd company formation is the most popular type of UK company formations.
- UK ltd company formation creates a legitimate UK ltd company with many uses.
- A capital requirement for Company registration in the UK is nominal.
- Company Incorporation in the UK does not require a corporate secretary for private UK limited companies.
- A UK limited company must have at least one director and one shareholder.