It is rather easy to start a company in the United Kingdom, even in case of no British citizenship. You may start your business from scratch or buy out an existing one. This country welcomes a foreigner who is smart and agile, willing to develop their startup, invest personal funds in small and medium enterprises or bring in a business plan. The United Kingdom has a transparent simple taxation system and regulations, owing to which not only the British but also foreigners may develop their businesses.
However, like in any other capitalist countries, the United Kingdom features its own challenges that are worth learning about before starting a company.
Some aspects of starting a company in the United Kingdom
The incorporation of a company in the United Kingdom in strict compliance with the
European legislation will open various opportunities for further partnerships with companies worldwide. Depending on your situation, you may buy out an existing business with good standing. Moreover, Britain will become an excellent opportunity to “promote” your startup without corruption or red tape.
Obviously, the registration of a company in the United Kingdom has its features, but having thoroughly studied the legislation and taxation specifics, it is possible to avoid many pitfalls.
To register a company it is necessary to have:
- company name that you have made (it must be unique – to check it, it is compulsory
to study the register of other companies); - company activity code;
- company director (otherwise the company will not be able to operate);
- company secretary (an individual or a legal entity);
- equity (authorized capital), as well as the number of shareholders;
- the number of persons, who will have significant interest in the company (directly or
indirectly); - in some cases, Memorandum of Association, specifying the rules of management and
the company Articles of Association.
Apparently, it is not very hard to start a company in England, though it is time-consuming. And even if you are not a British citizen or its resident, you may hire people who will manage the company and be responsible for its activities (nominees). However, here it is not worth trusting strange shell companies, since there are many frauds in this industry.
Specific features of starting a company in the United Kingdom
If you plan not only to register a company in England, but also further seek citizenship, you
will face a number of challenges. Here are the difficulties you may encounter:
- you will have to prepare numerous documents to submit an application to open a visa
(you can find more details on the types of business visas on our website); - you will need to find residential or non-residential property;
- if you have children or you plan to have them, you will have to search for educational
institutions in compulsory lists; - the actual removal to the United Kingdom;
- opening a bank account in a local bank;
- to open a branch of a foreign company you will need to collect a serious package of
documents from the parent company.
Nevertheless, it will be easier for you to settle these issues, if you do that by engaging experts.
Starting a company in England has a number of benefits: prestige, stability, prompt registration, directors and shareholders do not have to stay in the country and be UK citizens, a founder may be a director and a shareholder, relatively low taxes; the government protects corporate property and, naturally, a prospect of immigration to Britain.
Company registration in London — Legal Group
It is not worth being frightened of the above challenges and taxes, because otherwise the registration of an English company would not be so popular. England is considered the most popular region, where the tax rate may be reduced to 5% owing to the British legislation. That is possible due to a “loophole” — opening an agency company
This loophole is in the fact that the registration in London is documented as a company representative or an agent, who represents the interests of a non-resident company. These companies may not have significant deals in the country. The capital, necessary to start this company, and company activities directly influence registration costs. It is evident that the tax rate will depend on these factors. For instance, if your goal is to enter the European market of products and services, then after purchasing a company in Britain you will be able to significantly capitalize on tax benefits.
Legal Group team will offer you the best options to register a company in the United Kingdom most efficiently. The low tax rate may lead to its reduction from standard 20% to 5% (in case of trading, for instance, it is the sales of children’s toys or other products).
The registration of a company in England has a number of benefits, which the Legal Group experts will explain in detail during a consultation after examining the features of your future company activities.
Legal Group provides full support of removing to the United Kingdom: a visa and immigration, a startup visa, innovator visa, foreign company sole representative visa, citizenship y investment, citizenship of the United Kingdom, Cyprus, Malta, company registration, legal and business dispute settlements, property search and purchase.