United Kingdom
Incorporation package includes
- Incorporation of a UK company
- 1 year Registered Office Address
- 1 year Company Secretary Services
- Preparation of necessary resolutions and documentation
- Guidance to ensure your company remains in good standing
- Reminders and support for annual filings, renewals, and business registration renewals
Why form a company in the UK?
Access to Global Markets
As a major global economy, the UK provides access to both European and global markets, even post-Brexit, with various trade agreements facilitating international business.
Low Corporate Tax Rates
The UK offers competitive corporate tax rates, with the standard rate being 19% (set to increase to 25% for larger companies starting in April 2023). However, the country also provides tax relief and allowances for research and development, which can reduce tax liabilities.
Good Access to Funding
The UK offers strong access to financial resources, including venture capital, bank financing, and public funding schemes for businesses.
No Minimum Capital Requirements
There is no minimum capital requirement for forming a limited company in the UK, making it accessible for entrepreneurs and startups.
Strong Infrastructure & Talent Pool
The UK has modern infrastructure, a skilled workforce, and is home to many leading international companies, providing a solid foundation for businesses in all sectors.
Business-Friendly Environment
The UK has a well-established legal framework based on common law, providing a secure and transparent business environment.
Enjoy the UK's tax benefits
Foreign Income Tax Exemption
Non-domiciled resident companies are eligible for foreign income exemptions.
Low Corporate Tax Rate
Corporate tax rates are comparatively low, with recent reductions.
Tax Reliefs and Incentives
Numerous incentives, including R&D tax credits, enhance tax efficiency.
Extensive Double Taxation Treaties
Over 100 treaties reduce tax liability for foreign earnings.
Exemptions on Dividends
Dividends from foreign subsidiaries may be exempt from taxation.
Delivery timeline
The process of setting up a company in the UK is fast and efficient, typically taking 1-3 business days. Below is a typical timeline:
Pre-Incorporation
Choose your company name, prepare the necessary documents, and decide on the company structure.
Company Registration
Submit the incorporation documents to Companies House. If all details are correct, the company will be registered within one business day.
Issuance of Certificate & Documents
After registration, you will receive the Certificate of Incorporation and other relevant company documents.
Post-Incorporation
Finalize services such as opening a business bank account, obtaining a VAT number (if required), and appointing company officers.
Differences between an LLP and an Ltd Company
Feature
Limited Liability Partnership
Private Limited Company
Structure
An LLP is a partnership where partners have limited liability. This means that, like a limited company, the personal assets of partners are protected.
An Ltd company is a separate legal entity from its owners. This means the company can own assets, incur liabilities, and enter into contracts in its own name.
Taxation
LLPs are tax-transparent entities. They do not pay corporation tax. Instead, profits are passed through to the partners, who pay tax on their share of profits based on their individual tax rates.
Ltd companies are subject to corporation tax on their profits, which is typically 19% (to rise to 25% for larger companies). Shareholders can also be paid dividends, which may be subject to lower tax rates than salary income.
Management
LLPs have more flexibility in terms of management, as there is no need to appoint a director or hold annual meetings. The partners manage the business and can agree on the terms of the partnership.
Ltd companies must have at least one director and one shareholder. The company must hold annual general meetings (AGMs) and submit annual accounts to Companies House.
Ownership
There are no restrictions on who can be a partner in an LLP; it can be formed by individuals or corporate entities.
Shareholders own the company, and ownership is represented by shares. The company can issue multiple classes of shares.
Speedy Incorp's
recommendcation
Choose LLP if: You prefer a more flexible structure, especially if you have multiple partners and want to avoid double taxation. It’s ideal for professional services firms or businesses with multiple members who want to share profits but retain limited liability.
Choose Ltd if: You want to have a more structured and formal company, where ownership is divided among shareholders. An Ltd company is more suited for businesses that are planning to expand, raise capital, or attract external investors.
Limited Liability Partnership
Structure
An LLP is a partnership where partners have limited liability. This means that, like a limited company, the personal assets of partners are protected.
Taxation
LLPs are tax-transparent entities. They do not pay corporation tax. Instead, profits are passed through to the partners, who pay tax on their share of profits based on their individual tax rates.
Management
LLPs have more flexibility in terms of management, as there is no need to appoint a director or hold annual meetings. The partners manage the business and can agree on the terms of the partnership.
Ownership
There are no restrictions on who can be a partner in an LLP; it can be formed by individuals or corporate entities.
Speedy Incorp's recommendcation
Choose LLP if: You prefer a more flexible structure, especially if you have multiple partners and want to avoid double taxation. It’s ideal for professional services firms or businesses with multiple members who want to share profits but retain limited liability.
Private Limited Company
Structure
An Ltd company is a separate legal entity from its owners. This means the company can own assets, incur liabilities, and enter into contracts in its own name.
Taxation
Ltd companies are subject to corporation tax on their profits, which is typically 19% (to rise to 25% for larger companies). Shareholders can also be paid dividends, which may be subject to lower tax rates than salary income.
Management
Ltd companies must have at least one director and one shareholder. The company must hold annual general meetings (AGMs) and submit annual accounts to Companies House.
Ownership
Shareholders own the company, and ownership is represented by shares. The company can issue multiple classes of shares.
Speedy Incorp's recommendcation
Choose Ltd if: You want to have a more structured and formal company, where ownership is divided among shareholders. An Ltd company is more suited for businesses that are planning to expand, raise capital, or attract external investors.
Required documents
Once we receive the required documents, we will manage the incorporation process and ensure full compliance with UK regulations. The following documents are required:
Director and Shareholder Information
- Copies of passports or ID cards for each director and shareholder.
- Proof of residential address (e.g., utility bill or bank statement).
Company Name
Proposed company name (subject to approval by Companies House).
Business Activities
A description of the business activities that the company will engage in (SIC code).
Registered Office Address
Proof of the company’s registered office address in the UK (can be provided through our service).
Memorandum & Articles of Association
A document outlining the company’s structure, including share capital, the number of shares, and the rights of shareholders.
Statement of Capital
Details of the company’s capital structure, including the number of shares issued and their nominal value.
Frequently answered questions
Find answers to common questions about our services and the company formation process. We’re here to provide clarity and support for your business journey.
What is the minimum capital required to form a company in the UK?
There is no minimum capital requirement for registering a private limited company (Ltd) in the UK. However:
- A standard share capital is typically set at £1 for ease of registration.
- The company must have at least one shareholder who owns the shares.
This allows for flexible and low-cost incorporation, ideal for small businesses and startups.
What types of companies can be registered in the UK?
The most common types of companies in the UK include:
- Private Limited Company (Ltd): The most popular structure, providing limited liability to shareholders.
- Public Limited Company (PLC): For larger companies with the ability to raise capital through public offerings.
- Limited Liability Partnership (LLP): Suitable for professional services firms or joint ventures.
- Sole Trader: A simple structure for individuals who operate their own business.
- Community Interest Company (CIC): For social enterprises with a focus on community benefits.
What are the requirements to register a company in the UK?
To register a company in the UK, you need:
- A unique company name that is not already in use.
- At least one director (who must be an individual) and one shareholder (can be an individual or a corporate entity).
- A registered office address in the UK.
- Memorandum and Articles of Association outlining the company’s structure and rules.
- A standard share capital of at least £1 (unless you opt for a higher amount).
Speedy Incorp LLP can guide you through the registration process and provide all necessary documentation.
What are the ongoing compliance requirements for a UK company?
Ongoing compliance requirements include:
- Annual Confirmation Statement: Submit to Companies House, confirming the company’s details.
- Annual Accounts: Prepare and file financial statements with Companies House and HMRC.
- Tax Filings: Submit corporate tax returns to HMRC, and pay any applicable taxes.
- VAT Registration: If your business turnover exceeds the VAT threshold, you must register for VAT.
- Payroll and PAYE: If you have employees, you need to operate PAYE (Pay As You Earn) and submit payroll reports.
Failure to comply with these requirements can lead to penalties or legal consequences.
Can I open a bank account for my UK company remotely?
Yes, many UK banks allow you to open a business bank account remotely. However:
- Know Your Customer (KYC) procedures require you to submit identification, proof of address, and company incorporation documents.
- Traditional banks may require an in-person meeting or verification for larger accounts or complex structures.
- Some online business banks offer fully remote solutions, which may be more convenient for startups and small businesses.
Speedy Incorp LLP can assist with introductions to banks that support remote account opening and guide you through the process.
