In recent years, the United Kingdom has held a place in the top 10 of the World Bank’s Ease of Doing Business rankings. The country is a leader in attracting venture capital and crowdfunding. Company registration in England provides credibility in the eyes of partners and suppliers, access to new markets, and the opportunity to take advantage of the British business environment.
It is profitable to open a firm in the United Kingdom now! Lawrange offers a promotional price for a package of relevant services. Instead of 2950 euros, the cost of registering a company in the UK in the form of LTD (Limited) + account registration in 3 payment systems = 1850 EUR!
The specified cost includes opening an account in 3 (three) payment systems to choose from the list provided (Wise, Paysera, Payoneer. Genome, Bilderlings, Multipass, Revolut, etc.), as well as
- full registration of the company to the desired founder or director;
- payment of state fees;
- preparation of the package of constituent documents;
- renting a legal address for 1 year.
What is there to know about opening a company in the United Kingdom?
By registering a firm in England, the entrepreneur receives a platform for developing his business in the so-called “mid-shore”. It is a jurisdiction that is an intermediate link between a country with a regular tax regime and a classical offshore. The features of the tax and corporate legislation of England provide options for saving on taxes, in particular – when forming a partnership and in the case of obtaining income outside the country.
For your information! Such a request as “registration of an offshore company in the United Kingdom” would be essentially incorrect. England is not offshore. The term “offshore” in relation to a non-resident company in the United Kingdom can only be used in a figurative sense.
Registering a company in the United Kingdom has the following advantages:
- the documentation process itself is convenient, transparent, does not take much time and is available online;
- entrepreneurs have wide opportunities for state support and tax benefits;
- business development on any scale is facilitated by the country’s developed infrastructure and qualified workforce;
- the UK has a strong corporate culture and support for private enterprise, particularly small and medium-sized businesses;
- a firm in the United Kingdom creates the conditions for trust, both on the part of counterparties and regulatory authorities in different jurisdictions;
- the country’s market thrives in finance, IT, development and a number of other areas of commercial activity;
- companies with English registration have full access to all sectors of the global market.
The UK’s recent exit from the EU (Brexit) has had no negative impact on the country’s economic stability or business climate. The UK’s borderless market for goods and services provides opportunities for your business to grow.
What types of companies can be opened in the United Kingdom?
Corporate law in the United Kingdom allows many legal forms of organization (LFO) to conduct business activity. These include joint stock companies, public companies, private companies, and partnerships.
For your information! According to the practice of experts of Lawrange the majority of tasks for a beginning entrepreneur can be solved by creating a private company limited by shares (LTD). In certain cases it is advisable to use the form of partnership for business development.
A specific choice of business LFO is made on the basis of personal preferences of the business owner and the peculiarities of the commercial activity of the firm. At the same time the Lawrange team provides necessary information about the pros and cons of business entities in Great Britain for the entrepreneur to make a conscious choice. Regardless of the chosen form of business, according to the requirements of British law, the company is obliged to submit regular reports to the supervisory authorities and to conduct an audit.
Let’s consider the general characteristics of the common organizational-legal forms of business in England.
LTD registration in the United Kingdom
A type of business organization Private Company Limited by Shares (LTD) combines a limited liability company and a joint stock company. Companies in the form of LTD are popular in England, as it is an affordable option for any legal business activity.
Among the features of LTD:
- opening a company in England in the form of LTD can be carried out by one or more participants;
- the size of the authorized capital is not defined;
- the owner is liable for the obligations of the business only to the extent of its investment in the company or the company guarantees;
- pecuniary liability of participants, as opposed to LLC, is limited not by the amount of contributions to the authorized capital, but by the value of the unpaid shares – each participant (shareholder) owns a certain number of shares;
- the owner and director of the company can be the same person – there are no restrictions on citizenship and residence for owners and directors;
- the firm is taxed on all profits;
- it is necessary to submit reports.
Registration of non-profit organizations (Private Company Limited by guarantee)
The statutory activities of non-profit or unprofitable organizations (charitable foundations) do not allow receiving income. But if such an organization causes losses to clients, there is financial responsibility within the limits of the guarantees provided by the founders.
Among the features of non-profit organizations:
- there are no shares and shareholders in such organizations;
- organizations are owned by founders – guarantors;
- personal liability of each guarantor is limited to a fixed amount – a guarantee;
- if the organization cannot pay for its obligations, the founder must pay a guaranteed amount (guarantee);
- guarantors appoint directors to manage the organization, including the possibility to appoint themselves.
Registration of a Public Limited Company (PLC)
Adding the prefix PLC to the company name at the end is a step towards ensuring prestige, business reputation and gaining the respect of partners. A publicly traded company can, but does not have to, trade its shares on the stock exchange.
Among the features of publicly traded companies are:
- having a minimum of two shareholders and at least two directors;
- in order for the company to operate, shares must be issued for a minimum of £50,000, of which at least 25% must be paid up;
- the liability of the owners for the obligations of the firm is limited to the value of the shares held;
- the positions of director and secretary should be provided for in the staffing table, alternatively two directors, one of whom will act as secretary;
- the secretary must have the necessary professional training and experience.
LLP registration in the United Kingdom (Limited Liability Partnership)
For small businesses in Great Britain is often used such a form of organization as a limited liability partnership, which combines the characteristics of the individual entrepreneurship, LLC and limited partnership.
Among the features of partnerships:
- registration of a company in London or another city in England in the form of a partnership is often carried out after the conclusion of the Partnership Agreement;
- the liability of partners, in contrast to the individual enterprise (sole proprietorship), is limited – what an investment in the capital of the LLP is made, so will be the amount of liability;
- the amount of authorized capital is not defined;
- LLP does not pay income tax – the tax liabilities of each partner are reported by themselves at the place of registration;
- there are no citizenship or residency requirements for the partners.
Registering a company in the United Kingdom: requirements for the founders
Important! The specific requirements for company founders may vary depending on the chosen legal form of business. The list of general requirements for the founders of companies in the United Kingdom includes the following items:
- age – at least 16 years old;
- presentation of passport and photo in the package of documents;
- submission of information about the founders (shareholders) to the open state register.
For your information! When registering a company you should also take into consideration the requirements for the directors. In particular the director cannot be a legal entity. A copy of the director’s passport with a photo, as well as a confirmed address of residence should be provided in the documentation package.
Strengths of English jurisdiction
There has long been a tacit ranking of jurisdictions for registering a business in the world. And opening a company in London has entirely different consequences for the entrepreneur as compared to registering a firm in the Cayman Islands or even in Turkey. The United Kingdom is associated with the highest prestige in the business world.
The advantages of the UK as a jurisdiction for business registration include:
- investment attractiveness;
- the absence of the country in the “black” and “gray” lists;
- the status of one of the most influential financial centers in the world;
- legislation loyal to private business initiatives;
- minimum of state and currency control.
What is included in the cost of registering a company in the United Kingdom?
The package of services of AA Lawrange worth 1850 EUR includes:
- all the necessary steps to formalize the business in the chosen legal form on the client;
- elaboration of constituent documents;
- checking for originality and availability of the company name;
- filing to the Registration Chamber and obtaining the appropriate certificate;
- payment of state fees;
- rental of the legal address for one year;
- registration of an account in 3 payment systems: Wise, Paysera, Payoneer, Bilderlings, Revolut or others at choice.
Important! The legal support of Lawrange representatives for opening a company in England covers all requests arising at the start of the business on a turnkey basis. This approach allows you to minimize the cost of effort and time on the part of the client. It does not require a significant financial investment.
- service of a company secretary;
- service of obtaining a VAT-number in the tax office – is obligatory if the company’s turnover for 12 months exceeds £82,000;
- obtaining a company extract from Companies House;
- assistance in obtaining business visas;
- provision of nominee services;
- accounting services, in particular preparation and filing of accounts;
- apostilling of copies of documents.
Since business requires personalized solutions, we provide consulting services to clients throughout the firm’s lifecycle. We have accumulated sufficient experience in solving problematic issues, both in the interaction of business entities operating in the English market and in communication with the regulatory authorities. Our support helps maintain the stability of the business and its development within the law.
About terms and additional services
It takes from 1 to 10 days to open a firm in London or another region of the United Kingdom. On average the process takes from 2 to 4 working days.
Important! The exact time for registration of a business depends on the legal form chosen. For example, the fastest way to register an LTD is one or two days. But it takes up to 7-10 days to open a limited liability partnership.
For the full start of economic activity after the registration of the company in Great Britain sometimes it is necessary to make additional actions. Accordingly, we provide the necessary additional services. For example, in order to use an organization opened in England outside the UK for many countries requires apostilization or legalization of documents (including – for the CIS countries).
Also the time of starting a business increases the need to arrange accounts in the payment systems. This procedure takes from 5 working days and more.
Peculiarities of business registration in the United Kingdom
It is now possible to register a business in England remotely. Registration of a company in Great Britain online is done through the official website of the Companies House.
To register a company in England through this online service with support provided by a specialist of Lawrange, you will need to go through the following algorithm of actions:
- Contact us and get a consultation.
- Transfer payment for registration services.
- Follow the instructions received from us.
For your information! Please be aware of certain nuances, while opening a company in the UK:
- Establishing a company does not entitle you to work in the country. It is possible to open a company online, but a visa will be required for working in that organization.
- Business activities require a physical office, not a virtual company address.
- Official notifications from tax and other regulatory authorities are sent to the office address, as well as business correspondence from partners and clients and bank documents.
Advantages of registering a company in England with Lawrange
On the one hand, opening a company in England is an excellent solution for asserting the high status of the business. But on the other hand, it is a complex process, the success of which depends on knowledge of the many legal nuances.
In order to achieve the result without errors and delays, an experienced assistant is required . The Lawrange team is ready to become such an assistant. Our experience in international business support, in particular the registration of companies and opening bank accounts around the world, exceeds 10 years. We have a good understanding of the peculiarities of the British legal system and communication with the registration authorities. Our support enables you to start your business in one of the most reputable jurisdictions on the planet without unnecessary worry and expense.
Our capabilities cover:
- quick resolution of a legal address issue;
- online support of the paperwork for clients;
- preparation of individual business solutions;
- further corporate services;
- professional translation of documents.
By default, we guarantee complete confidentiality and maximum investment from our side to implement the client’s wishes.
What taxes do businesses pay in the United Kingdom?
The corporate tax rate in the UK is set by the government each fiscal year. The basic rate of corporation tax is 19%. From April 1, 2023 it will increase to 25%. At the same time the rate of tax on redirected profit is 25%, and from spring 2023 will increase to 31%.
The basic rate of VAT is 20%. For certain categories of goods there is a reduced tax rate of 15% and for some goods there is 0% (for books, children’s clothing, food products).
The taxation of personal income in the United Kingdom can be as high as 45%.
Important! If it is a question of taxation of partnership, it is not the company that is taxed, but each partner separately. On this basis, if the partnership does not conduct business activities on the territory of Great Britain, and if the partners are not tax residents of this jurisdiction, they pay taxes only in the country of their tax residency.
The UK has a good network of treaties on avoidance of double taxation, which allows to minimize taxes on dividends, royalties and interest received by the British firm.
In what banks is it possible to open an account for a UK firm?
If you decide to use the legal support of Lawrange to open an account for an English company, you will be provided with a fairly large list of countries and financial institutions to consider as a solution. We cooperate with banks and payment systems of such countries as Switzerland, Germany, Poland, Luxembourg, Denmark, Czech Republic and so on.
As a priority (within the cost of our service package) we offer you to consider opening an account with Wise, Paysera, Payoneer, Bilderlings payment systems. But if it does not suit you, we are ready to offer other options. More details can be found in the description of our service “Account opening for English and Scottish companies (LP, LTD, LLC)“.
List of required documents
To open a company in the UK you will need a minimum of documents:
- copy of a foreign passport;
- copy of the internal passport of a citizen;
- set of constituent documents – prepared by Lawrange specialists.
Attention! Together with the documents we need to submit several versions of the future company name. Repetition of company names in the register is not allowed. To the chosen and checked for originality of the name will be added the ending LTD, LLP and so on, depending on the legal form of the business. In the name is not allowed to use the words Empire, Crown, Imperial, Royal, Bank, National.
Order a consultation
Every business and every business owner has its own tasks. In order to maximize the realization of such tasks by registering a business in England, a preliminary consultation with the Lawrange experts is necessary.
During the consultation the following questions will be answered:
- What organizational-legal form is optimal for the client’s business in England?
- Where is the best place to open a corporate account?
- How to optimize company taxation in the UK?
- How are the issues with a legal address, nominal service, accounting services solved?
- What are the peculiarities of the legal regime of a dormant company?
To order a consultation, before opening a company in the United Kingdom, you can:
- use the feedback form at the bottom of the page;
- contact us by phone or via messenger;
- email us at firstname.lastname@example.org.
Registering a company in England – cost and terms?
The cost of a standard package of services for business registration in the United Kingdom is 2950 euros, during the promotional period company registration + registration of an account in 3 payment systems will cost only 1850 euros.
The terms of documents preparation for a company in England – from 1 to 10 days. On average – from 2 to 4 working days.
Can a non-resident register a company in the United Kingdom?
Yes. Any person of any nationality can start a business in England. Citizenship or residency in the country are not required to register a company. The founders of companies can be both individuals and legal entities.
Is it possible to open a non-profit organization in the United Kingdom?
Yes, the legislation of Great Britain provides for the possibility of opening a Private Company Limited by guarantee – a structure that is suitable for a charitable foundation, public association, religious organization and so on.