Going ahead with a UK company registration is a positive step. With good tax and legal advice a UK company registration can be truly worthwhile. UK companies are widely used because of their benefits and are recommended as an alternative to offshore company formation for tax and business reasons.
UK Limited Company Registration: Legal Entity
The UK limited company and UK LLP are legally treated as entities with their own identity and powers. Because of this they are independent entities distinct from their shareholders or members. Through company incorporation in the United Kingdom you are able to acquire property, open bank accounts, transact and invest using your company’s name. Acquiring assets or having them transferred to a UK company is an easy way to protect personal assets because whatever is owned by the company is legally separate from that of its owners from the moment of company registration.
UK Limited Company Formation: Limited Liability
The UK limited company and limited liability partnership are not only legal ‘persons’. They are UK companies with limited liability, which legally prevents personal assets from being claimed as payment for company debts or if the company goes bankrupt. Limited liability is one of the main advantages and reasons for UK limited company registration
UK Company Registration: Structure and Concept
UK ltd company registration uses a structure and concept that is known and used worldwide. The basic idea of the UK limited company is the same internationally, even though the name appears as Sociedad Anónima (SA) in Spanish, Société Anonyme à Responsabilité Limitée (SARL) or Société Anónima in French or Gesellschaft mit beschränkter Haftung (GmbH) in German. As a result, with UK company formation you create a business structure that is trusted, accepted and well known in the business world. The basic structure is standard, comprising a Management Board or Board of Directors, Shareholders and a Secretary.
UK Company Incorporation: Access to Other Markets
UK company registrations make it more acceptable and beneficial to trade in the EU and other international markets. Plus, as a member of the European Union, the UK is as an ideal gateway for international and EU trade. The UK is signatory to over a hundred of double taxation treaties, which are agreements signed between countries or regions to provide businesses and individuals with preferential tax treatment or incentives. For a non-UK resident, company incorporation in the UK means tax advantages.
The image of your UK limited company means a lot, especially when entering new markets. This is why even though UK companies pay taxes, it is good that your UK companies are tax transparent and can avoid being scrutinized. This is not necessarily so with an offshore company as IBC’s and LLC’s are known to be tax free and often said to be encouraging harmful tax competition. With a UK ltd. company registration your company can avoid being drawn into this debate.
UK Limited Company Formation of Low Tax Structures
Despite of the taxes in the UK, company formation opens opportunities to minimise your tax liability. Below are several examples of strategies that can be used for company registration in the UK.
Some of our clients use company incorporation where the UK limited company is acting as the Selling Agent of an offshore company.
Another strategy uses UK company incorporation of an LLP with its members being either offshore companies or non-UK resident private individuals. It can potentially create a zero tax business structure since UK LLPs are exempted from corporation tax, while members pay income tax. By taking full advantage of UK non-residency rules for taxation, members can potentially reduce income tax payable to zero.
UK Limited company registration rules allow other companies not only individuals to be its shareholder upon UK company incorporation. The same applies when forming UK Limited Liability Partnership (LLP).
The benefit of the above strategies is that UK company registrations (ltd company or LLP) can increase the income for the shareholders or members.
UK Ltd Company Registration Requirements
Company formation in the UK requires only one shareholder and director (this can be the same person) for a UK limited company, and a minimum of two members for a UK LLP. It means you can proceed with UK company formation on your own or with another person. The advantage of this in company incorporation is avoiding a shareholder conflict by being your own shareholder and director. As a sole shareholder and a director you exercise the authority of the general meeting, can record your own minutes or hire a secretary to help with administrative duties.
Company Formation UK: Privacy
Privacy is an important factor in company registration because people incorporate for different reasons. Some to protect assets, trade goods, invest in stock markets internationally or purchase property without having to use their personal identity. To protect your identity during UK limited company registration, we can provide you with a nominee shareholder and a nominee director, so that the details of the nominee and not yours will be shown on the public register.
Company Registration UK: Flexible Structure and Continuity
As the needs of a limited company change, members have the freedom to make and implement decisions. For better organisation, rules to appoint and dismiss directors, reduce or increase the number of shareholders and share capital of UK companies can be included in the Articles. UK company incorporation laws allow UK companies to exercise this freedom, so they can adapt to changing business climates, situations and resolve conflicts as they arise.
Also, UK companies limited company and limited liability partnership) have continuity. This simply means that these companies continue to exist legally even if a director or shareholder leaves or dies. Company incorporation in the UK provides a powerful advantage, which allows a business to operate and grow over a very long period of time.
Company formation in the United Kingdom is simple and fast due to electronic and web based filing. Our company registration service takes care of the paperwork and legal procedures that clients would normally have to do on their own. We ensure that all UK company registrations are complete within one working day, providing that all relevant information is received and Companies House does not experience any technical issues.