United Kingdom company incorporation / formation

UK COMPANY INCORPORATION

The United Kingdom offers unique opportunities for business that want to trade in European Union even after the Brexit. The UK companies are very cheap to set up however rather expensive to operate. 

Advantages

• Same day incorporation, performed online
• Extremely low set up fees, possibly the cheapest we have come across
• English Language
• Common Law (case by case)

Disadvantages

• A UK National must be appointed as director and or secretary
• Even though substance is not required it may be extremely difficult to open a bank account without substance
• Fiduciary services are NOT common / allowed and are very expensive
• Brexit uncertainty impacts Corporation Tax rate, VAT, import duties and other taxes not known to anyone yet
• Corporation Tax applies at 19%
• Maintenance of proper accounting records is required and possibly a year end audit if the Company meets thresholds*
• Public record of company officers can be obtained online
• Costly accountants and lawyers

Characteristics

• Year end statutory accounts must be prepared in a very simplified form
• Year end tax return must be prepared
• A local registered address must be provided

Audit Exception Threshold

A UK company may qualify for an audit exemption if it has at least 2 of the following:

• an annual turnover of no more than 10.2 million pounds
• assets worth no more than 5.1 million
• 50 or fewer employees on average

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United Kingdom (Wikipedia)