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Company Formation in United United Kingdom

Overview :

The United Kingdom (UK) is the largest country in the British Isles. The UK has a long and rich history which is combined with a modern, liberal and forward thinking mentality. Waves of immigration have made the UK culturally diverse and wealthy and it is now one the world’s leading financial and services centres, with an economy which continues to go from strength to strength.


Advantages
  • UK has entered into various DTAAs.
  • The UK offers many advantages for international business the English language
  • Business friendly laws and regulations
  • Well educated and flexible workforce
  • Stable political landscape and infrastructure that supports trade and the efficient movement of goods.
  • This has served to make it the leading investment destination for companies developing their global business
Tax Regime
  •  UK income tax is chargeable on any UK source income received by an individual in the UK if they are UK resident.
  • Losses are carried forward indefinitely. Losses can be carried back for one year.
  • A company holding 75% in a subsidiary can usually file a consolidated tax return.

Types of entities

Private Companies:

The majority of companies are those limited by shares, with members or shareholders who hold one or more shares issued to them by the company in return for payment. Although most shares are fully paid and the shareholder has no liability for the company’s debts, a shareholder’s liability to the company’s creditors is normally limited to the amount of any shares that have been issued to them and which they have not fully paid for.


Public Companies:

The advantages in acquiring PLC status may for some be a matter of image, but for most a need to be legally entitled to offer shares to investors, subject to regulatory approvals. A PLC must have an issued share capital of not less than fifty thousand pounds of which a minimum of 25% must be fully paid up.


Company Limited by Guarantee:

A guarantee company has members, rather than shareholders, whose liability is limited by an amount, normally less than a £1, guaranteed by each member, which becomes due in the event of the company being wound up. The Memorandum includes a non-profit distribution clause and these companies are usually formed by professional, trade or research associations. After incorporation the company can be registered with the Charity


Flat Management Companies:

A flat management company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer a freehold property, which is normally divided into several dwelling units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer this ownership of the share to the new leaseholder when disposing of the property.


Limited Liability Partnerships:

A limited liability partnership is a new form of legal business entity with limited liability. The main features of limited liability partnerships are that they have organisational flexibility but are taxed as partnerships. In many other respects they are very similar to companies.


United Kingdom Branch:

An overseas company may register itself in United Kingdom to operate as a branch, in lieu of incorporating a wholly owned United Kingdom subsidiary. To do so various application forms need to be lodged with Companies House and annexed to them must be certified copies of the company’s current certificate of incorporation and other prescribed documents. The company must file with the Companies House each year its annual accounts and comply with other reporting requirements, such as changes in its directors and registered office in the country of incorporation.


Time Period

It usually takes 13 days to set up a business in United Kingdom.