Company Formation and Incorporation - The United Kingdom
Background
The United Kingdom of Great Britain and Northern Ireland (UK) is an island country that sits north-west of mainland Europe. It is made up of mainland Great Britain (England, Wales and Scotland) and the northern part of the island of Ireland (Northern Ireland). It has numerous smaller islands. The UK is low lying in the east. It has mountains in the north of England, in Scotland, in Northern Ireland and in Wales.
According to the World Bank, it is the easiest European country to do business with. As the top destination for foreign direct investment in Europe, the UK government welcomes thousands of overseas businesses every year.
Key Information
Region: Europe
Population 67.22 million as of 2020
Area: 242,500 sq kilometres
Capital: London
Joined Commonwealth: 1926, on founding the British Commonwealth of Nations
Incorporation Process and Timeline
| Limited Liability Company (LLC) | Public Limited Company (PLC) | Limited Liability Partnership (LLP) | UK Representative Office | UK Branch | |
| Minimum number of directors | 1 | 2 | 1 | 1 | 1 |
| Minimum number of shareholders | 1 | 2 | 2 | 1 | 1 |
| Local Presence (director/ shareholder/ officer) | No | No | No | Yes | Yes |
| Maximum Foreign Shareholding | 100% | 100% | 100% | 100% | 100% |
| Office Lease Agreement Requirement | Yes | Yes | Yes | Yes | Yes |
| Minimum Paid Up Share Capital | GBP 1 | GBP 50,000 | None | None | None |
Incorporation Timeline | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks |
Public Register of Shareholders and Directors | Yes | Yes | Yes | Yes | Yes |
Preference Shareholders | Yes | Yes | Yes | No | No |
Regulator | Companies House | Companies House | Companies House | Companies House | Companies House |
Taxation and Accounting
| Limited Liability Company (LLC) | Public Limited Company (PLC) | Limited Liability Partnership (LLP) | UK Representative Office | UK Branch | |
| Corporate Tax | 19% | 19% | 0% | 0% | 19% |
| Tax Exemption | No | No | Yes | Yes | No |
| Auditor Requirement | No | Yes | No | No | No |
| VAT Payable | 20%, exemptions may apply | 20%, exemptions may apply | 20%, exemptions may apply | None | None |
| Double Taxation Treaties | Yes | Yes | Yes | No | No |
| Annual Tax Return Filing Requirement | Yes | Yes | Yes | Yes | Yes |
| Annual Financial Statement Filing Requirement | Yes | Yes | Yes | Yes | Yes |
| Permission to own other UK companies | Yes | Yes | Yes | No | Yes |
Others
| Limited Liability Company (LLC) | Public Limited Company (PLC) | Limited Liability Partnership (LLP) | UK Representative Office | UK Branch | |
| General Activity | Products and services | Products and services | Products and services | Research and Branding | Specific Industries |
| Physical Presence for Incorporation | No | No | No | No | No |
| Foreign Investments | There is no specific law governing or restricting foreign investment. | ||||
| Average monthly salary for local employees | GBP 1,500 | ||||
Corporate Bank Account
| Limited Liability Company (LLC) | Public Limited Company (PLC) | Limited Liability Partnership (LLP) | UK Representative Office | UK Branch | |
| Corporate Bank Account Available | Yes | ||||
| Bank Account Opening Timeline | 2 – 4 months | ||||
The United Kingdom (UK) offers the following benefits
- Credible and reputable jurisdiction. Based on the World Economic Forum, UK has been recognised as one of the top 10 most competitive economies in the world. Elements such as macroeconomic strength, infrastructure, human capital, market size and financial systems were all taken under consideration.
- Straightforward and rapid registration. Registration process can be less than a week. In the ongoing quest to promote enterprise, the government continues to examine ways to give well run companies the freedom to get on with business rather than administrative formalities.
- Tax Incentives. Companies in the UK currently pay only 19% Corporation Tax on profits, one of the lowest amongst all the European nations. Moreover, the government often offers tax relief schemes with no withholding tax on dividends.
- Ease of raising new capital. Companies have the option to raise capital at any time by issuing new shares to existing shareholders or new investors. The creation of one or more new share classes can be used to offer flexibility in rights to vote and therefore control the company, receive dividends and extract capital if the company is wound up. While the company may be established so new shareholders can easily be introduced, it is also possible to include pre-emption rights to protect the interests of existing shareholders.
The United Kingdom (UK) Company Registration Guide
Companies House is the United Kingdom’s registrar of companies and is an executive agency and trading fund of Her Majesty’s Government, falling under the remit of the Department for Business, Energy and Industrial Strategy. All forms of companies (as permitted by the United Kingdom Companies Act) are incorporated and registered with Companies House and file specific details as required by legislation. All registered limited companies, including subsidiary, small and inactive companies, must file annual financial statements in addition to annual company returns, and all these are public records.
Desfran Services in The United Kingdom (UK)
With more than a decade of experience, our team at Desfran is here to meet your business needs beyond just company formation. We also provide the following services in UK:
- Company formation
- Assistance in Business Management
- Corporate Management advisory
- Provision of registered agent and registered address
- Provision of company management, directorship, and shareholding services
- License application assistance
- Onshore/ Offshore bank account introductions and applications
- Virtual office services and other corporate services
- Nominee services
Application Process:
- Submit your interest here
- Our Offshore Formation Specialists will reach out to you for an in-depth discussion
- A customised proposal will be sent to you upon uncovering your needs,
- Upon the proposal confirmation, we will require the of the following information for the application
- Proof of Identity
- Proof of Residence (within the last 3 months)
- director(s),
- shareholder(s) and
- beneficial owner(s)
Once the above has been approved, we will send you an invoice for payment.
The incorporation process will commence upon receiving payment
Desfran deals directly with the authorities instead of the use intermediaries in your application process. In this way, we are able to ensure our prices remain competitive while you are ensured of utmost privacy and care in your application.