UK Business Incorporation

UK BUSINESS INCORPORATION

The United Kingdom (UK) is one of the largest and developed consumer markets and it’s a prestigious location for business. Even after Brexit, the UK is still a place of enormous opportunity. The UK is a favorable business destination for Indian businesspeople. To encourage competition, the UK government has made changes in its norms for easing the operation of the business, such as the Indian nation are free to open and operate the business in the UK depending upon the form of company and type of industry.

A corporation can not operate as a limited company until it is incorporated under the Companies Act 2006 at Companies House. Establishing the business as a company ensures that each year the directors are required to file such papers, such as annual reports and confirmation statements.

They must also notify Companies House of any changes, such as appointing or resigning directors or changing the registered office of the company.

Advantages of Business incorporation in UK

➲ Separate entity

A limited liability company is, in the eyes of law, a different organization to its owner. It is another great benefit of forming a limited company, rather than a sole trader. A single trader is seen as one person, and its owner is. A director of a limited company has insurance, should the company fail. Because the corporation is the independent party, it may conclude contracts and is responsible for all the business. As it is a separate entity contract/agreement will be entered in the name of the company.

➲ Low set up cost

There is a common misconception that forming your own limited company is a very costly process involving hiring a solicitor and preparing legal business paperwork.

It really surprises most people to learn that with our digital package, you can actually set up your own limited company for as little as £12.48. There's also no need to invest in expensive legal assistance either!

➲ Easy incorporation process

Incorporating a business in the UK is quick and easy, as there is a minimum legal requirement.

➲ Tax advantage

You are likely to pay less personal tax as a registered limited company than a sole self-employed trader. Your limited company income will be subject to corporate tax, which is 19 percent for the current fiscal year 2018/19 at the time of writing. There is also a goal for April 2020 to get this figure down to 17 percent.

Forms of company and partnership available in UK:

➲ Private limited company limited by shares

This company holds a share capital and each member's liability is limited to the sum unpaid on their shares if any. A private enterprise can not sell its shares to the general public for sale.

➲ Private limited company by guarantee

This company does not have a share capital and its members are not shareholders but guarantors. The responsibility of the members is limited to the amount if it is wound up they have to contribute to the assets of the company.

➲ Private unlimited company

An unlimited company may or may not have a share capital but there is no limit to the liability of the shareholders.

➲ Public limited company

A public company has a share capital which limits each member's responsibility to the amount owed on their shares. It may sell its shares to the general public for sale and can be listed on the stock exchange.

➲ Community interest companies (CIC)

A Community Interest Company (CIC) is a limited company designed for people who plan to carry out activities that support the community. CICs are registered as companies under the Companies Act after the application to create a CIC has been approved by the CIC regulator. The regulator also has a continuous supervisory and compliance role.

In the UK Public limited company is most popular for expanding businesses among other forms of available business in the UK. Public limited company shares many of the attributes of Limited Liability Partnership but can source public investment.

Pre-requisite for company incorporation:

➲ Minimum 1 director (any nationality) for incorporating Private Limited company

Whereas for incorporating Public Companies a minimum of 2 directors are required and one qualified secretary is required.

➲ Registered office address

Documents and information required:

➲ Copy of passport and ID of Shareholders

➲ Copy of passport and one additional ID of director

➲ Registered office address proof (must be of that place in the UK where the company is going to be incorporated)

➲ What will be objective of business so that can decide standard industry classification (SIC) code

➲ Details of shareholders and director

What does Corpzo offer?

➲ Preparation of company registering form (Form IN01)

    This form consists of the following information:

• The proposed name of the company- A private limited company name or guarantee must end with 'Ltd.' However, if the registered office is stated to be located in Wales (a "Welsh" company), its name may end with "cyfyngedig" or "cyf" instead. whereas a public company name will end with 'public limited company' or 'p.l.c.' However, if the registered office is indicated to be located in Wales (a 'Welsh' company), its name may end with 'Cwmni Cyfyngedig Cyhoeddus' or 'CCC' instead.
• Registered office address of the company (that is the place in UK were the company is getting incorporated) - There must be a registered office in UK were the proposed company going to be incorporated, for receiving the documents and couriers in the name of the company.
• Whether the company will be private or public or unlimited
• SIC code (standard industrial classification code)
• Director’s detail

➲ Draft the memorandum (bylaws) for the proposed company

The memorandum is a much shorter document under the Companies Act 2006, since all of the company's constitutional laws are contained in the articles association. The memorandum thus has a more restricted function, and can not be amended once the company has been incorporated.

➲ Draft the article of association of the company.

Articles of association of a company are its internal rulebook, chosen by its members. Every company needs to have documents that are legally binding on the organization and all of its members. The articles help ensure that the business of the organization operates as smoothly and effectively as possible and explain how decision-making is made by members and directors as well as various related issues.

Tax regime of the UK

➲ Tax for Corporate:

• If your business profit is below 300000 Euro then you will pay 19% tax on profit
• If your Business earns profit more than 30000 Euro then your business will get margin relief + 19% tax on profit.

➲ Tax on Dividend:

• HMRC fixes the rate of tax paid on all dividend
• The basic dividend is 7.5 percent. £0 to £37,500 above personal allowance taxable income In England.
• Higher rate of dividend tax 32.5% £37,501 to £150,000 on taxable income over the Personal Allowance In England

➲ VAT (Value Added tax)

• If turnover over the last 12 month is 85000 Euro or more then you are liable to register yourself  in VAT and have to pay the VAT liability

Additional Services

➲ Bank Account opening Facility

We will help you in opening a bank account remotely in the UK where your business has been incorporated. You don't need to visit that place for getting the bank paperwork, everything will be processed remotely.  

➲ Trademark Registration

We can register your trademark under the UK trademark attorney for making your brand and trade name safe and secure

➲ Mailing services

Can provide you the mail services either electronically or physically for your newly incorporated company. 

➲ VAT registration

If turnover over the last 12 month is 85000 Euro or more then you are liable to register yourself  in VAT and have to pay the VAT liability