UK and Scotland LTD | Interstatus - Group of Companies UK and Scotland LTD – Interstatus – Group of Companies

General jurisdiction information:

The United Kingdom (official name The United Kingdom of Great Britain and Northern Ireland) is a state in North-Western Europe situated on the largest European archipelago, the British Isles. It comprises 4 political administrative regions: England, Wales, Scotland and Northern Ireland. United Kingdom also controls so-called overseas territories consisting of small islands around the world.

Great Britain has an extremely eventful history, old traditions, a stable political system, a strong and sustainable economy, world-renowned schools and universities, diverse exhibitions, festivals and national celebrations.

The population is slightly above 64,000,000 and the capital city is London. The country is a signatory to the Hague Convention.

The official language is English.

The official currency is the British Pound Sterling.

Services (mainly banking, financial and advisory) and their exportation are the key economy sector in The United Kingdom. Extraction and industrial refinery sectors and tourism are also well developed.

The United Kingdom is a member of NATO and has been the European Union member since 1973, but remains outside of the Euro zone. The country retains one of the leading positions in world economy and plays an important role in WTO, OECD and the International Monetary Fund. The world’s major stock and commodity exchanges are domiciled in the UK. Over 50 major world banks service a diverse international business community and wealthy private clients from London.

The main legislative acts governing the operation of UK companies are:

  • Companies Act 2006;
  • Limited Liability Partnership Act 2000.

According to the legislation above and also for practical reasons, the most popular legal forms and organisational structures for foreign investors are the Limited Liability Company (LTD), the Limited Liability Partnership (LLP) and the Limited Partnership (LP).

With specific terms of legislation related to operation of partnerships The United Kingdom is a widely respected jurisdiction among investors who enjoy the opportunity to apply convenient corporate and tax planning tools.

Advantages of UK companies incorporation:

  • the UK jurisdiction boasts an impeccable reputation in the international business community;
  • UK companies enjoy high prestige in international markets;
  • just minimum requirements are required for administration of companies;
  • there is a diverse choice of types of companies that are tailored to specific business objectives;
  • the availability of bank accounts with UK banks;
  • loyal tax legislation and transparent taxation system;
  • effective tools for corporate and tax planning;
  • strong protection of assets by UK Law;
  • confidentiality for beneficiaries;
  • no exchange controls;
  • an option for the establishment of branches in the European Union and universal opportunities for E-commerce.

.

UK companies incorporation process:

Legal entities in the UK are registered by the dedicated national authority, Companies House, who are responsible for registration and supervision.

The structure of UK companies:

Limited liability Company (LTD):

Companies eligible for registration must submit a set of documents to Companies House comprised of the Memorandum and Articles of Association and special forms with details of directors, the secretary and the registered address of the company.

Director:

Companies must have at least 1 director and only natural persons can act as director of a company. There is no residency qualification.

If required, we can provide the services of local (nominee) directors to secure total confidentiality and complicity with UK Law.

Shareholder:

Companies must have at least 1 shareholder who can be a natural person or a corporation and there is no residency qualification. The shareholder can also act as director. Should the potential beneficiary of the company require total anonymity, our firm can provide nominee shareholders.

Secretary:

A secretary is mandatory. The secretary may be a natural person or a corporation and there is no residency qualification. The director may act as the secretary subject to the presence of two or more directors in the company.

Should you need the services of a real secretary, we can provide such services. Please contact our virtual office representative for detailed information.

Registered office:

UK companies must have a registered office and a registered agent is mandatory.

Share capital:

Standard authorised share capital is £1,000 divided into the relevant number of shares with a £1 par value. There is no requirement for payment of capital. The Law contains no regulations as to the amount of capital required for the issue of shares. Shares of the company may be ordinary, preferential and with or without voting rights. Bearer shares are prohibited.

Registration period:

Registration period is 3-4 days. Shelf companies are available.

Accounting and auditing:

According to legal provisions, UK incorporated companies are required to maintain accounting and submit financial statements and tax declarations to the relevant authorities.

  • Annual Returns with information on the company that includes details of the directors, shareholders, capital and registered office must be submitted to Companies House within 28 days after every 12 month anniversary of registration;
  • Annual Accounts containing the balance sheet and financial statements for the calculation of tax are to be submitted to Companies House within 10 months after the end of each financial year.

Audited financial statements must be submitted if turnover of the company exceeds £5,600,000.

Failure to submit financial statements within the specified period will incur considerable penalties.

  • Annual Tax Returns detailing profit for the reporting period and the amount of taxes paid must be submitted to Her Majesty’s Revenue and Customs Department (HMRC) within 12 months after the end of each reporting period.

In the case of a breach of the above period for the submission of a tax declaration, penalties are applied and the Tax Office may fix the amount of tax according to their assessment and the company is obliged to pay the deemed tax and penalties. Reports are submitted on-line.

Public information in the registers:

The UK Register is open to the public and information on directors and shareholders is freely accessible. Beneficiary information is not recorded in the Register and is closed to the public. It is strongly recommended to use nominee services.

UK taxation provisions:

The United Kingdom is not an offshore jurisdiction. Tax legislation sets conventional (medium to high) tax rates applicable to income of corporations and private individuals.

Corporate tax:

Corporate tax is imposed on income of resident companies derived in the UK and in any other country, net of tax paid abroad. Corporate tax is charged on taxable income from trading operations, provision of services and capital gains net of expenses incurred during the course of business. The prevailing rate of corporate tax is 20% (applicable from 1st April 2015).

Dividends distributed to UK companies are generally tax exempt. Dividends paid to UK companies by other companies (local or foreign) are tax exempt irrespective of minimum ownership period requirements and/or size of interest.

Capital gains generated from control of an interest (over 10%) is tax exempt subject to certain legal conditions. Capital gains generated from ownership of material interest (over 10%) in the capital of the company is tax exempt subject to certain conditions.

Corporate tax is imposed on non-resident companies that are subject to income derived from their operations within the UK.

Tax withholding at source:

Dividends distributed by UK companies are tax exempt at source.

Interest paid by UK companies to non-residents is taxed at source at the rate of 20% except when reduced rates are applied by Double Tax Treaties or where EU Interest and Royalties Directives provide exemption.

Royalties paid by UK companies to non-residents are taxed at source at the rate of 20% except when reduced rates are applied by Double Tax Treaties or where EU Interest and Royalties Directives provide exemption.

Value Added Tax (VAT):

The standard rate is 20%. In some cases a reduced rate of 5% or exemption is applied according to provisions of the VAT Law. VAT registered companies must be registered by the UK Tax Office.

Companies must register if:

  • the value of transactions subject to VAT exceeds £82,000 in any 12 month period;
  • the company ships EU goods to the UK of a value in excess of £82,000;
  • the company expects turnover in excess of £82,000 within 30 days.

Voluntary VAT registration is applied to companies with a turnover below £82,000.

Personal taxes:

The maximum rate of personal income tax is 45%.

Double Tax Treaties:

The United Kingdom maintains Double Tax Treaties with over 100 countries including Germany, France, the USA, Poland, Cyprus, China, Russia, Kazakhstan, Ukraine, Latvia, Estonia, Moldova, etc. Double Tax Treaties do not apply to dormant companies. LLP and LP partnerships comprised of non-resident partners and LTD companies submitting dormant accounts are not eligible to use the Treaties signed by the UK.

For more information on the incorporation and administration of companies in the UK or companies registered in other jurisdictions, please contact us. 

1st year

BASIC
1300
  • Company Incorporation
  • Government Fees
  • Corporate Document Set with Apostille
  • Registered Office
  • Registered Agent
  • Company Stamp
  • Courier
STANDARD
2325
  • Company Incorporation
  • Government Fees
  • Corporate Document Set with Apostille
  • Registered Office
  • Registered Agent
  • Company Stamp
  • Courier
  • Nominee Director
  • Power Of Attorney with Apostille
  • Nominee Shareholder
PREMIUM
2775
  • Company Incorporation
  • Government Fees
  • Corporate Document Set with Apostille
  • Registered Office
  • Registered Agent
  • Company Stamp
  • Courier
  • Nominee Director
  • Power Of Attorney with Apostille
  • Nominee Shareholder
  • Cyprus Bank Account Opening

2nd year

BASIC
600
  • Payment of Government Fees
  • Registered Office
  • Registered Agent
STANDARD/PREMIUM
1675
  • Payment of Government Fees
  • Registered Office
  • Registered Agent
  • Nominee Director
  • Power Of Attorney with Apostille
  • Nominee Shareholder

*Please contact us for a detailed price list and additional information.