For anyone interested in setting up a company outside their jurisdiction, The United Kingdom is a viable and lucrative choice.
The United Kingdom holds the leadership of foreign investment in Europe and offers vast business opportunities in multiple sectors. No longer a part of the EU, the UK is strategically situated between two continents and remains an excellent gateway to the US and the rest of Europe.
As many market studies demonstrate, not only is it profitable to invest in the UK, it’s also extremely easy!
The UK has the lowest corporate tax in the G7 and the most flexible market in the whole of Europe. Let’s not forget that the lack of a language barrier allows foreign investors to skip the drawn-out step of hiring translators or being lost in translation.
With the top 6 universities in Europe located here, The United Kingdom is a world leader in innovation and research. It also boasts an extremely stable political and regulatory environment, which ensures that foreign investors don’t have to worry about the safety and longevity of their investments.
Working with CompyCo to establish your UK business, you can leverage the favorable tax regime, simple registration process, competitive economy, diverse market, and high-skilled workforce availability.
Forms Of Companies In The United Kingdom
- PLC—public limited company
- LTD—private limited company by shares
- Company limited by guarantee
- UNLTD—unlimited company
- LLP—limited liability partnership
- Community interest company
- IPS—industrial and provident society
- RC—royal charter
What is the difference between LLC and PLC companies in the UK?
In the UK, LLC and PLC are the most common types of companies started by foreigners.
The minimum share capital for a British LLC is 1 pound. The company must have one director and one shareholder; both of them can be British or foreign citizens. The minimum time frame required to register an LLC in the UK is 2 days after the due diligence documentation has been collected and our application form completed.
A PLC in the UK requires a minimum share deposit of 50, 000 pounds. In some cases, only 25% needs to be paid up. This type of company requires two shareholders, two directors, and one secretary. The PLC must apply for a trading certificate and is best suited for large-scale investors who wish to enter the British stock market.
Fundamentals Of A Limited Liability Company
Corporate Tax in The United Kingdom
VAT in The United Kingdom
Fundamentals of limited liability companies in The United Kingdom
|Limited liability company||LLC|
|Minimum Share capital||Any. Doesn't have to be paid up|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local directors required||No|
|Bank signatory must travel||Yes, but it is not mandatory to have a bank account in the UK.|
|Timescale for company formation||2 days|
|Timescale for bank account opening||14 days|
|Timescale for obtaining VAT number||up to 3 weeks|
|Statutory audit requirements||No|
|Shelf companies available||Yes|
How can I set up my company in The United Kingdom?
The company registration in the UK is one of the cheapest and most straightforward in the world.
The client sends us the due diligence documentation along with a completed CompyCo application form.
We submit the documents to the Register.
The company is formed within 2 days.
After the company has been formed, we can assist with the bank account opening. We can remotely open the company’s bank account for the client or set up a meeting with the bank.
In the last step, LLC founders can apply for a VAT number and other taxation-related permits and certificates.
UK’s quick and simple process can be made easier with the help of CompyCo’s experienced team. Our expert guidance along the way ensures you make the right decisions according to your business’s needs and activities.
CompyCo’s experienced professionals have a wealth of information to offer business owners who are interested in setting up a company in the UK. Varying processes can depend on the type of business you choose, we’ll provide expert guidance and concierge services to get your business up and running in no time.
As a foreign investor venturing out of your jurisdiction, a foreign country’s regulations and laws may seem confusing to you. For this reason, we’re committed to offering the most straightforward, complication-free process that gets the job done.
With foreigners being allowed to register their company online, in most cases, we offer help with the necessary registrations, licensing, documentation, and representation needs to ensure you can avoid having to travel all the way to the UK!
Bank Account Opening
The UK company doesn’t have to have local bank account. The high street banks in UK will not open a bank account for a UK company with non-UK directors (at least one director must be UK resident), but it is not mandatory to have bank account in the UK. Thus, we can open an account for the UK company elsewhere or, in some cases, remotely in online banks in the UK.
CompyCo can also assist foreign companies in opening online bank accounts in the UK.
As a foreign entity, your company can open a bank account with international or local financial institutions (online) in the country. While some banks may offer specific services for non-residents, others may be more compliant with your business’s activities. Either way, we’ll help you explore all the possibilities and help you choose a bank that you’re most likely to be approved by for a bank account.
Some of the documents you need to provide are:
- A copy of your passport or national ID card as proof of identification
- The address of the shareholder or company director
- Business address
- The registration details of your UK business
Want more information about opening a bank account? Visit our bank account opening page for more.
Accounting & Taxation
The requirements related to accounting and taxation to keep in mind are:
- The tax year is the calendar year in the UK.
- All businesses are supposed to keep accounting books.
- The taxable profits include investments, trading profits, and any assets sold for more than their original cost.
- The UK has a standard corporate tax rate of 19%. Ring fence companies (those extracting and trading with oil) can claim Marginal Relief on profits between 300,000 and 1.5 million pounds.
- British companies are issued VAT numbers with the format of the country code UK followed by a 9-digit number which ends with a letter.
- The current VAT rate is 20% on most goods and services with some exceptions. In those cases, depending on the products or services you offer, a 5% VAT rate applies.
How can you employ staff in the United Kingdom?
Diverse job sectors, lucrative employment opportunities, and a plethora of skilled, highly-educated workers make the UK a viable business venture for your company.
Foreign investors in the UK can often struggle to understand the region’s employment laws. That’s why CompyCo’s experts are dedicated to providing our in-depth knowledge and full-service solutions to employment in the UK.
CompyCo provides a range of services related to employment and payroll in the region. If you are a foreign company owner who only needs to employ one person in the UK to work from home, we can help you avoid local company registration and set your non-resident company as an employer.
Our concierge HR and payroll services range from employment agreements and recruiting to payroll and statutory benefit provision.
Do you have any queries? Take a look at our HR services page for more information about our International HR services!