Opening of the company in Great Britain

GLS Law Company Services: Company Registration in the UK

If you wish to open a company in a reputable European jurisdiction known for its positive image and attractive tax rates, consider the United Kingdom. While it doesn’t offer the lowest corporate tax rate, opening an LLP company here means such taxation is not applicable. There are no offshore zones in the UK, but the country offers numerous other advantages you can benefit from after establishing your company.

Advantages of Registering a Company in the UK

The main benefits of starting a business in this jurisdiction include:

• Company registration in England makes the information about beneficiaries, directors, and shareholders public. It’s also necessary to regularly submit reports. This allows local companies to adhere to the principles of business “transparency,” enhancing their reputation and image.
• It’s not possible to open an offshore company in the UK as the state is not considered an offshore jurisdiction and is not included in any blacklists of such zones. This exempts local firms from the requirement to follow transfer pricing rules.
• The corporate tax rate is 19%. Moreover, there is no tax on repatriation if dividends are transferred to Ukraine.
• Registering a firm in the UK allows you to obtain VAT and EORI numbers, as well as a certificate of tax residency to avoid double taxation.
• After registering a company, opening a bank account presents no significant problems.

Legal Forms for Company Registration in England

The three most common legal forms in the UK are:

• LTD – there are no residency requirements for directors and shareholders. No minimum share capital is required. Registering a firm in the UK implies that there will be at least one director and one shareholder. The profit of such an LTD company is subject to a 19% tax.
• LLP – registration requires two participants (individuals or legal entities). No statutory capital is required. The roles of director and secretary are usually performed by “designated members.” LLP companies are almost offshore in the UK, as such partnerships do not need to pay corporate income tax.
• LP – a partnership established in England or Wales. The general partner performs the management role. Opening such a company requires at least two partners (individuals or legal entities). In LP, information about beneficiaries and owners is not public. The partnership cannot obtain a tax resident certificate, and its legal office must be located in England or Wales.

Financial Reporting Nuances for Company Registration in England

The reporting process has several features to consider:

• Financial statements are provided annually.
• The reporting period is tied to the company’s opening date.
• If a company in the UK is inactive and not conducting business after registration, it should submit reports containing only invoices for its administration.
• Zero reporting should be avoided as it might attract undue attention from tax authorities.

Registering companies in London or another city in the UK means that the organization must submit various types of reports:

• Confirmation Statement – submitted to the register annually, containing information about founders, directors, and other officials, type of activity, etc. Failing to submit this annual report on time can lead to the legal entity being listed for liquidation.
• Annual Accounts – information about the company’s financial activities. This report determines the corporate income tax (19%) for LTD companies.
• VAT return – quarterly VAT reporting.

Requirements for Company Registration in the UK

Once you have decided on the legal form, you can open a company in London or another UK city. This requires:

• At least three company name options. They should not be similar to the names of existing firms.
• Determining the legal entity’s structure: the number of owners, directors, etc.
• Preparing a set of documents. For registering an LTD company in the UK, you will need:
  • A foreign passport.
  • Proof of residential address – utility bill, civil passport with registration, etc.
  • A business description that includes:
    • Type of activity.
    • Company objectives.
    • Geographic coverage.
    • Contact information.
    • Company website link (if available).

Contact our specialists if you are interested in company registration services in the UK at attractive prices. To do so, submit an application on the GLS Law Company website or contact our company’s experts via the contact phone numbers.