Registration of companies in Great Britain
from 1330 c.u.
Great Britain is one of the oldest and richest countries in the world, which annually attracts many investors from all over the world. Thanks to the encouragement of a multicultural climate, today a country with rich and strong traditions is ready to host you and your business. There are some subtleties but they do not present any problems if you are competently accompanied through the whole process.
Why choose Great Britain?
- One of the richest countries in the world
- Developed banking sector
- The economy is independent of the European Union
- The most stable currency in the world
Stability in many sectors, security of deposits as well as conservative and professional approach to business – this is what you will see in Great Britain if you decide to open your business here.
As such, an offshore company in the United Kingdom cannot be opened, since there are other, no less profitable forms of doing business.
Although Great Britain may seem like a very difficult country to register a company, this is only at first glance – in reality, the procedure today is quite simple and does not take much time.
Is it possible to buy a company in Great Britain?
If you do not want to register a new company, you can simply buy an existing legal entity that has all the necessary details, such as:
- Legal address
- Regulated composition of founders that meets the laws and the declared form of ownership
- Positive or zero balance
- Necessary reporting
- Nominee shareholder, director, secretary
Usually such companies are called “dormant”. They are suitable for those people who make a deal in the shortest possible time using an existing company.
Where do companies usually register?
You can choose any city in Great Britain located in England, Scotland, Wales or Northern Ireland. However, England and Scotland are traditionally the most popular.
What forms of doing business are available?
Thanks to the developed economic and banking sector, here you can traditionally choose the type of company that suits you best.
It depends on many factors such as:
- Number of shareholders
- Rights of shareholders
- Amount of authorized capital
- Timing for the operation
To choose the most optimal company form for your business, you can contact us for professional consultation.
The following types of companies are the most popular:
- English limited liability partnership (LLP)
Suitable for small businesses. Combines sole proprietorship and LLC. Does not issue shares. - English or Scottish limited partnership (LP)
- Private limited company (LTD)
Combines LLC and JSC (by analogy with the Russian Federation). The most common form that can be created by one or more participants. Suitable for almost any type of business activity. Each owner is a shareholder. - Public limited company (PLC)
The main feature is the possibility of issuing unlimited number of shares. - Public company
- Private company with unlimited liability
- Branch of a foreign company
As you can see, the list is impressive, however, it allows you to choose exactly the form that will really meet the needs of your business as much as possible.
Offshore zones
As usual, companies and businesses that are registered in the United Kingdom are not offshore. However, it is possible to turn to some independent territories, such as Jersey or Guernsey, which also have their own benefits and may be interesting from the point of view of doing business.
Principles of registering a company in the United Kingdom
Today, the process of registering a company takes a minimum of time – from 3 to 24 hours. The whole procedure is fully automated and done online. As soon as you complete the registration process, you will receive a certificate of incorporation of the company to your email.
As usual, as for the founders, the process is standard:
- age must be over 16 years old
- a legal entity cannot be assigned
- at least 3 options for the company name shall be specified
During the registration process, the data of the director’s passport, full name and address of registration, as well as data on all participants are indicated.
Since the standard of living here is one of the highest, taxes also differ in their rates. However, there are many tax incentives worth taking advantage of.
The main list of taxes consists of:
- VAT — 20%
- Corporate tax — 19%
- Profit taxation can be up to 45%
That is why it is necessary to select the most appropriate form of doing business and enjoy tax benefits.
All reporting is submitted electronically, once a year. If the company does not conduct business, it is also necessary to submit reports (in a simplified form). Failure to submit reports may result in fines and penalties.
After registration, you can start working throughout the United Kingdom, Commonwealth member countries and dominions.
If it is necessary to work in the CIS countries, the company must be legalized. To do this, you need to additionally go through the procedure of apostilling documents which will confirm their legality legally. The process itself takes about a week.
There are no restrictions, from 1 £. There may be some subtleties regarding certain legal forms, but this needs to be checked further.
Great Britain requires its companies to have an actual address, not a virtual one. In addition to sending many documents by mail, special inspection authorities may come to the company’s address.
Unfortunately, companies are not registered at the address of a non-resident.
You may be exempt from audit in case of:
- Low annual income, usually up to £6-6.5m
- Number of employees less than 50
- Asset value up to £3.26m
This is just a small list, which varies depending on the form of the company.
Why registering a company in Great Britain is the right move?
By choosing to register a company in Great Britain, you choose reliability and stability for your finances.
In addition to the obvious benefits, it is also:
- Reporting only once a year
- No paperwork, all reporting is submitted electronically
- Minimum shareholder liability
- Activity can be carried out with one employee
Some pitfalls to be aware of ahead of time
The main difference of Great Britain lies in the peculiarities of the legislative system which differs significantly from the continental one.
In the United Kingdom so called case-based jurisdiction is used which means applying previous court decisions to similar cases. That is why it is necessary to approach with particular care the choice of a company and the conscious selection of competent support. We know even the most subtle points and features of legal forms, so you do not have to refer to arrays of court decisions in various counties.
Leave this to professionals!
